OfflineI can't over emphasize the value of a good relationship with an HONEST Broker/Agent.
I have been working with this Broker/Gal who specializes in REO's for REMAX. All along she has gone out of her way to try to be honest with me...EVEN when I might not like to hear it.
I was having trouble coming up with "good" comps for a property I am trying to fund, and so I decided that I would put my Agent to work.
She stands to make about 4K on this deal, so I thought she might be concerned enough about that paycheck to do some things for me that I don't have the experience nor MLS to do on my own.
Come to think of it....I am making a pact with myself....NEVER TO WORRY ABOUT COMPS AGAIN....That is now HER job.
I told her that for EVERY accepted offer that we get ....SHE has to provide me with ACCURATE comps for me to present to my HML guy.
Why should I do this myself?? Not only is this something she does ALL THE TIME anyway...She now has to EARN HER KEEP.
I already use her to search the MLS for ANY deals that fit my LTV AND ARV ratios.
Now that I have her somewhat trained in this area she has become Not Only a TOOL....BUT a Partner.
She was very helpful tonight when she corrected me on some comps that I came up with....giving me updated comps that were more honest, and that STILL fit with the ARV ratio that I need for this property.
She even told me that she was concerned that I don't misrepresent the values, not only for loan purposes, but so that I don't get screwed by buying a property that really didn't have the VALUE that I was looking for. SHE'S HIRED !!
Anyway....Just remember....Your Broker/Agents that you may work with NEED to be on YOUR team. They should be there to HELP you and WATCH OUT for you. They are professionals and understand the LAW, and ETHICS and if you find one like I did...She will Correct you FOR YOUR OWN GOOD.
This realization is very similar to what Matt Larsen has done with his Broker....He got HER to hire an assistant so that HE didn't have to do some of the work he used to....This freed him up to do the important work....FIND DEALS.
Make sure that your Broker understands your worth to them. You intend to be an ONGOING source of commissions for them, and You should EXPECT that they realize that VALUE.
It will be in their attitude that they reveal their acceptance of a subordinate position. YOU ARE THE BOSS.
Don't be afraid to take advice from your "Partner", but temper that Advice with Knowledge and Training that you will receive HERE and from other sources like the Success Academy or DEAN'S BOOKS.
REMEMBER....even though your Agent is a professional....They may not, and probably don't, understand the many creative finance techniques, and strategies that you will be using until they see them work THROUGH YOU !!
So USE YOUR BROKER !!....Use them for ANY of the resources that they may have at their disposal.
....BE A USER, BUT IN A GOOD WAY....
You may find that Not only will the end result be a Professional touch, but LESS WORK FOR YOU !!
BEST OF ALL......THERE IS NO CHARGE....THE SELLER PAYS FOR IT.....LOL
How can you beat that??
Sam
BUILD your knowledge base....it is your ARSENAL to wage war against disbelief and the negativity of the status quo. You need your weapons......It's your choice whether you carry them or not.
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Build Relationships and open the door to opportunities that could once only be dreamed of......never take those relationships for granted.
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Don't let EXCUSES be the nails that keep you INSIDE the box.
A good agent is worth their weight in gold. I've only come across a couple since I started investing. But keep looking if you haven't found yours yet. They're out there, you just need to keep searching and sometimes you need to educate them as well too, like Rina and others have done with theirs.
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
RE Brokers are invaluable when it comes to locating REOs. Our Broker has us set up with an automatic email update that sends us any/all new REO listings on a daily basis. This is truly a great tool and any Broker should be able to do it for you. Just ask. If one can't, ask around until you find one that can.
However, when it comes to comps, I either pull my own from the MLS or have my Appraiser do it. She has no vested interest in whether I buy a specific property or not. I have had Brokers in the past that got a little "heavy handed" when it came to comps because they have a real monetary interest in you buying that property. I'm not saying all Brokers are like that, but I prefer to take any potential conflict of interest out of the equation altogether.
I usually pay my appraiser about $100.00 for a CMA. A small price to pay for an objective opinion of value. Subsequently, if we do end up purchasing that property and need a full appraisal for a refi etc., she will credit that $100.00 toward that appraisal.
CTP
Are agents/brokers who specialize in REOs more difficult to find in certain US states than others? If so, which states(or region) and why? As a newbie, I have learned a great deal from the posts here on Dean's site. Keep em coming! Wayne
CTP - how are you getting comps from the MLS? I would love to do the comps myself, not just for the comps, but to better assess and track the sales trends.
Tracey R.
Tracey,
I use a site called www.ziprealty.com You have to register 1st for free. Very good for comps , sales trends, google earth pics from overhead and many times streetview. Otherwise Zillow, Realtor.com, homepages.com
Bruce
Thanks, Bruce! I'll go check that out! I love online resources!!
Tracey
i have a few agents that i offer alot more ponits then there commission and they work hard for me to find nice spreads and great deals what im trying to say is dont be greddy treat them right and they will treat you right they have introduced me to more agents my money in the next few months to years will be great
Tracey
In a post some time ago, I mentioned how I came across my RE agent via "happenstance?" For reasons I cannot recall, she one day began sending me emails of properties. So, after approx. a month or so, I explained to her via email, I would be going into an investment business and asked her if she would be interested. To my surprise, she said "yes," after meeting with her it seemed like we had known each other all our lives.
I indicated in my last post re: this RE agent... she never asked me about what her profit would be in any deal(s) nor did she set any stipulations for me to follow... All she stated to me was "whatever I can do to assist u, just let me know..." From that day to this, my RE agent has been sending me weekly "Notice of Title Sales Reports" directly generated from the title company on their latest "NOD" / "foreclosures." Also, she sends me a weekly list of ALL their REO properties, sometimes over 100 listings per week. She has buyers lined up for me to do "rentals, leases, lease/opt, etc..." But, I have not been able to work with these individuals for lack of securing any properties????
She works the "higher end" properties where currently live in Camas, WA.... Her sister the escrow agent (a 20 year veteran) has agreed to do ALL of my closings. I am working on setting up a meeting with her as well to discuss her specific role on the team. I feel I have a good start here I just need to complete my list of "cash buyer's" and "HML's".... If anyone is willing to point me in the right the direction I will be waiting to go!!! Shalom!!!