Ask an agent....

Thank you Elix for posting this thread. I am wondering how to work with an agent as a wholesaler. I have a friend that is an agent and wondering how to approach her? Thanks, Tammy

I can somewhat understand that people may be a little nervous when talking about something that is new to them and how they might get rejected, etc., but the main point of things is if you dont say anything, how will you know???

because she's your friend, she SHOULD give you more of the benefit of the doubt, but I would speak with her as a potential partner and not just a friend. That way it will be less conflicting because she'll know you were serious.

Right I want to approach her saying that I have partners and now a real estate investor. I think she will be shocked. So I wonder what to say next. Will she ask me about how much money I have to invest, will she know about all the signs around and say don't do that you are taking away my business, etc.

"I didnt tell you because I wanted to get settled, but i've started getting into real estate investing recently and have been speaking with buyers who are looking for properties and wanted to work with you.

If you have any properties I could help you sell, you won't have to share your commissions because i'll get paid separately but wanted to know if this is something you'd like to do together. Plus, I could really use your help."

I've always believed in simple, 1-2 sentences to convey the jist of your plans so you're not over talking someone and losing them by the second sentence.

Oh Elix, That is superb. Yes, I want it natural, short and sweet. I just want to convey the message naturally, and not talk down or back down, etc. You are amazing! I feel confident to call her and other agents now. Thank you! Tammy

great idea and nice of you to help.

Just wanted to let EVERYONE know (even the reagent haters)that one of my last deals was brought to me by a Realtor and it was a GREAT deal. Read more here:

http://www.deangraziosi.com/real-estate-forums/my-deals/81353/homerun

Realtors can be a great help!! Dont be dicouraged because you haven't found the "right one" yet.

Do you have some suggestions about speaking with realtors? How to impress upon them that you may be new, but you are serious about real estate investing and you have the knowledge? How do I approach the realtor without sending up red flags about doing assignments of contract or double closings? How would I approach a realtor about doing virtual wholesaling like Carol Stinson?

Thanks for your help!

RENinja

Mike, Thank you for sharing that information. Tammy

Hi Elix,

I've decided to use the listing agent to submit offers. I've submitted one so far and the REA has been quite gracious and kind. However, I wonder if this pratice is acceptable. How do REA's feel about being used by a buyer who just "happened" upon his/her listing? Especially when that buyer is submitting a lowball offer and has been told that the offer WILL be rejected.

Thanks for your input,
Aniko

The best thing I can say is talk to them.....not at them.

For me personally, I generally don't deal with newbi,......lesser experienced investors. Sorry, I promised myself I wouldn't say the 'N' word ever again on this site.

The reason is they talk 'at' me like I need them, or like my life just began because I picked up the phone and started speaking with them. Something I tend to see alot of on here, which is one of the reasons who so many on here have not achieved the success they believe they should have.

Now if it were someone from here, I would have made exceptions, just for the record.

The 'Know It Alls' as I call them have said the following to me. Verbatim;
1.
Yeah this is Mitch and im an investor, I need you to send me your listings or any unlisted properties so I can buy them or better yet just send me the contract. Do you see my number on your phone??? Call me back when got them....Dial Tone

2.
"I'm using secondary funding to purchase properties"
(me) ok, so just send it in with your corporate docs as well as your bank statement to verify the funds and i'll then email you what I have
"what are corporate docs?? As in documents??? for a corporation???

3.
"I'm going to assign the properties. I need you to send me your listings so I can make you some money."
(me) dont you want to see the properties???
"I dont need to. I will be picking 20-25 properties per week and you'll need to present them for me. Look, if you want to make money, and I can make you more money than you've ever dreamed if you do things the way I tell you to...
(me) ok, no problem. what else do you need me to do???
"I need you to tell me who the buyers are in the areas you work and get me in touch with them so I can sell your properties."
(me) so you've read Deans books I see...
"Um,....how do you know about Dean??? Who is this???
(My dial tone. One of my favorites of all time)

If an investor to be came to me, and several have with this or similar, which many have

"hey im trying to get started in real estate and just need someone to help me out id appreciate it."

"I been in the game for a minute and seem to be spinning my wheels looking for some direction and you love to pick your brain or work with you"

"I have no money, horrid credit, but want to do this real estate badly. My options are limited and could use any help you'd want to offer"

For those and similar, I would and have sat, spoke over the phone, taken out to dinner(business expense), taken out for drinks(biz expense) and even cigars to talk RE. When I say I love this business, I LOOOOOOOOOOOOOOOVVVVVVVVEEEEEEEEE this business and have no problem helping others out in the process.

But show some respect and humility. I don't expect anyone to kiss my arse because I don't care how big you are, while i'll respect your accomplishments, no one is that big to be fawned over. No one.

Now, in reality, you may not find an agent who is so willing to give, but then you might. The best way to approach this is to have thick skin; you're going to get alot of disappointments but if you can keep your eyes on the prize, you SHOULD get there. Nothing is guaranteed.

Before you want to get into this idea of offering 25+ offers at a time, i'd run your full intentions to the agent. One, two or even three is ok, but when you're getting up there in #'s and the rate of success(actually closing) is minimal you will see serious apprehension and rejection.

I personally believe that if something of that magnitude is going to happen, face to face interaction tends to be best; that way it generally puts both parties at ease, allows each other to feel one another out to see if tis going to be a good match, and just to see that person in general. i've avoided many horrors just by meeting someone as opposed to just working over the phone.

Also, most agents prefer an offer that has a greater % of clearing than just sending out an offer to see if it sticks because what you're dealing with is our time, something we dont get back if meesed up.

Hope i've answered your question well enough

As usual you are right on. I have had great success actually calling the agent on a property I was interested in and meeting them there. Face to face talk while looking at a possible deal. Then if the numbers are right(another critical training story in itself!) make an offer through that agent. That works alot better than the scripted approach. And you learn what you are doing in the mean time.

Michael Mangham
MD Home Acquisitions LLC

just want to keep the bashers of real estate to a minimum

Thanks elixbrown, I just want to make volume II clear to the realtor without having them hang up on me, because they feel like they are wasting their time with a new investor.

RENinja

Hi Elix Brown,
First of all, I like the way you answer questions, it's straight forward and honest.
I live in Queens, NYC and just started real estate business 2 months ago. I bought RBBP and tried the 30 Days Quick Cask formula but I am not getting anywhere so far, one problem I can't find an agent to work with. I call 5-8 agents from RE/Max and Kelly William by following Dean's instruction, most of them took my phone number and never called back as they said they would.
Would you please give me simple way to find a RE agent? Any suggestion would be very much appreciated.
Thanks,
Charles

Thank you Elix for your your insight as to how real estate agents feel working with investors. This is a very good thread and much appreciated. Tammy

Elix I am also licensed but in Oklahoma, and glad to know about other folks agents doing investments and sharing their experience with real estate investors. I think the key is to find an agent who is not afraid to work with an investor. In other words, an investor who makes an offer much lower than the asking price. Some agents are afraid to submit offers because they believe the offer will be rejected. Finding the right agent is key, and finding the right system is key as well. What I mean by that is that investors will make offers all the time and every time a motivated seller is "Selling". I also help some of my investor friends to find properties. We use electronic signatures, ONE earnest money check, and one standard pre approval letter. This seems to work as it is fast and easy for the realtor, especially when submitting several offers per week. I am sure the realtor is not gonna see you that many times per week. The realtor will make a commission and in today's market I'm sure they want to help. Investors should mold their realtors to work the way you need it.

At the very least there has to be a middle ground

I can only speak for NYC, but here when it comes to the closing of homes, the agent/broker has alot,....ALOT of influence and power towards a deal going through.

I do not, have not, and will not present offers that if I know they will not go through present. If a property from an owner or investor I know or have dealt with is selling for $300k and one of my buyers says $200k, I will tell them right off the bat it will not go through because I generally know what they will or will not accept.

I will tell the seller, get the counter verbally, and then let the buyer know the final offer. At that point, you either do or you don't.

Same with homes for end users, but in this market, often when the seller is willing to give a full concession, ie, paying the closing costs, they will not budge too much on price and will prefer as close to full price as possible.

So for me, the 25 offer option does not exist.

Whether I work with an experienced or inexperienced investor, my goal is to close and I do not have the time to present homes, especially if you haven't seen the property.

There are certain things I do and do not, and my goal, like my clients, is to see them get what they want, and that is for me to hand me their keys, say congrats, and pick up my check.

I like your style, you dont mince words you get to the point.You are correct in saying if someone is new and learning the ropes, they should be so humble in asking an agent to work with them and not for them.IT ahould always be a win win situation.BUT some people is all about themselves first, second and if any leaves over it is also for them, never any consideration for someone else time and feelings.

and just as I was preparing myself to contact as agent...
Now this makes me afraid to go thru an agent at all!

wouldn't it just be best to get a license and get the info yourself?

all that i have been reading about in the DG books has just been negated here.

Susan don't take everything you read at face value. I know there will be those who say it works and those who say it doesn't. It is meeting the right agent and your approach, dedication follow through. Everything is not so simple nor as cut and dry as on paper.

Just as there several ways to put on pants, there are several ways to do real estate.

I speak only from my experiences; don't let that hinder what you want to do because only you will be affected no one else

Elix,

I'm in Dallas TX where the average sales price is around $160,000. I've only purchased properties for under $15,000 (the asking price was less than $20,000). Can you think of a way I can attract Realtor to work with? My Realtor is not interested.

I find the properties myself, have the funds available to cash close quickly and submit contracts on properties I'm serious about closing on... maybe 1 a week.

You can either keep doing it yourself and saving yourself a commission or keep trying to find a realtor.

Understand however the commission on a $20k home is quite low so I hope you can see it from an agents POV

Good luck on the choice you make

Thanks for your honest respectful advice and opinions. Thanks for helping us get a view from the REA side of the deal

The RIGHT realtor should be your friend, they can give you comps, send you listings, cash buyers, etc....

You need one on your power team.

If I already have some what do I need you for???

The RIGHT realtor is there to make sure everyone involved gets a check, not do all the work so everyone involved gets a check.

If you bring a home to my attention, YOU need to bring me the comps, taxes, etc. and have control of the deal where if I want to see inside or bring my buyers with me, there will be no hesitation.

Then and only then will I work to make things happen. That to me is the way it should be.