A Drought of Homes

I know how you are feeling; and I have days like that, but keep your chin up and keep motivated by something you are doing to inch forward. That is what I am doing.

I know about real estate agents; I am working with a couple, but I have to say that I only feel that one is really on board. I had several pry all the time, although I let them know, like you, right up front what I was doing. Just keep going and find more than one realtor. Tammy

I believe in full disclosure but I don't provide TMI. When talking to an agent, I would not tell them you are wholesaling until you close a deal or two. It really is none of their business IF and I say IF you can perform and produce.
This means you actually know what a real deal is, can get it under contract at a price that allows your fee and your cash buyer will purchase. Knowing this is far more critical than finding an agent.
Honestly, would you work with someone that tells you they have no money and must depend on finding a buyer in order to close???? When the agents ask your exit strategy tell them you buy with cash (true) or you may use a third party non institutional lender to fund the deals (true). Tell them not to worry about how you will fund the deal. If they bring you killer deals they will have all the money they need at closing. End of conversation. Repeat every time they ask.
You will provide POF and a check copy of the requested earnest money amount with each offer.

Also, don't forget to work the pre-foreclosure market. Counties have records of Notices of Default filed on a daily basis. Market to them, no agent, use your own contracts. Or FSBOs, for rents, estate and garage sales, expired listings, absentee owners. etc. etc.

Hope this helps and gives you some direction,

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

I have a couple of questions:

1) My killer deal that you mentioned is prefaced on my ability to gain a "real world" education, i.e., actually working deals. I haven't had the opportunity to do that yet. I believe that I have a general feel for my market at this point -- I only get uncomfortable "guestimating" repair/rehab costs.

2) My non-institutional lender -- I assume you're talking about my buyer?

3) POF -- I got shot down when I mentioned to the Century 21 agent that I'm using transactional funds for a double close. Apparently they are getting tough on using folks like Coastal, correct?

4) Would you use a website like preforeclosures.com to find that information? How do you market to folks at the preforeclosure stage? Especially if they're upside down in their home?

5) Aside from driving around (only have time on weekends and Friday night), what is the most effective way to find these people?

Thanks for your help!
Sean

1. You are so right Sean. The way you learn property evaluation and acquisition is to get out and learn the market down to the very street you are offering on. You can evaluate all the REOs an agent will show you. You don't have to buy the thing!! Comps can vary street to street! Get a couple of contractors to give you estimates on a select property or two.

2. That would be the buyers hard money or private money or your transactional funding.

3. If you tell them that in advance they will not submit offers. It is none of their business. I never tell an agent my exit strategy. Confidence and control of the conversation on your part, not the agent. I have never had a deal rejected because of my POF. Never. I use a TF POF letter on every offer I make. Does not mean I will use that source of funding.

4. If they are upside down I refer them to my short sale team. Some websites allow you to put in minimum equity numbers. A very few pre foreclosures are wholesale deals, most are possible L/Os or subject to deals. The majority are short sale leads. Let each deal tell you what it is.

5. Driving for dollars works great. Garage sale, estate sale signs, for rent signs, FSBO signs. Expired listings from an agent. Probates and absentee owners at the court house. Craigs list for FSBOs and For rent. That should keep you busy.

Set up a system with your future agent so that you can make at least two offers a day on REOs.

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Sean,

Michael has outlined some great advice that you should review and listen to him. The biggest problem I see here is not about "full disclosure" but it is about "TOO MUCH INFORMATION"! Please understand that real estate agents come in all shapes and sizes! They come with different backgrounds, different training, different personalities, different areas of expertise. Because they are so varied means that you are going to have to sort through several to find one that is "Investor-friendly". Everything that you are learning, ALL of Dean's techniques are LEGAL. Many agents have never been taught how to work with investors. It's not their fault. Unfortunately, most agents come to the conclusion that if they don't know then it must be illegal. Don't get discouraged - I know that it can be. Find another agent! You are on the right track. Here are some things to think about when talking to agents:

1. I'm looking for an agent who I can have a long-term relationship with
2. I'm an investor, I work with a "group" of investors (your buyers)
3. We can provide proof of funds
4. We are cash buyers

don't separate you from your buyers, always use the terms "We" and "Us". The minute you separate yourself from your buyers the agent feels like you are doing their job.

I hope this helps!

Karen

Sean,

Do you have any of Dean's books? If so, I might suggest you go to 'Profit from RE Right Now' and turn to page 114. Here Matt (Larson) provides a copy of a letter that he uses to fax or e-mail to PROSPECTIVE RE Agents that he might work with.

Take his letter, modify it just slightly to fit your particulars, and go to town with it. Why try to re-invent the wheel? Dean and Matt are very very successful using this formula to find RE Agents who love working with them and getting paid.

I would also suggest Dean's book '30 Days to RE Cash', pages 31 - 42. Here you have Matt's personal methods and conversations he has with RE Agents when HE IS INTERVIEWING THEM to see who he (Matt) wants to work with. Remember, you are interviewing them, the RE Agent to find out who you can work with. Again, don't try to re-invent the wheel, Dean and Matt have done a very good job of laying it all out for us! Why make this harder than it has to be?? lol

And finally for those who may not have either of Dean's books, here is a link to information on finding a RE Agent on Dean's website:

www.deangraziosi.com/agentfinder

Now I will be honest; I have not gone to this page of Dean's website. But in his 30 Days book he says that this webpage contains the EXACT SCRIPT that Matt uses when he (Matt Larson) contacts RE Agents.

I would suggest you go to this webpage of Deans, read and print the exact script, and rehearse it several times before you actually make a call. That way when you do make the live calls to RE Agents, you won't sound like you are reading a script but rather just having a conversation. That is what it should be afterall, just a conversation with another person who happens to have a license that allows them to get paid a very small amount if they help facilitate a real estate transaction.

Hang in there Sean; if it were not for the raining days (and days we feel down about this business) we would not recognize the bright sunny days! To your continued success (and count the small step victories as part of your success!!!).

--Walter

"If it is to be, then it is up to me" -Anon

Sean,

Karen is right, don't give them too much information, that will scare them off. The advice in this post is great and I don't think I could have said it better. Let us know how it goes.

Remember, just because one Realtor didn't work, doesn't mean they all won't work. Keep pushing through these hard times!

Don't forget that you have agents on this site in your area

Find a Real Estate Agent that will send you expired listings,take those listings
and do direct marketing to them,Yellow Letters,Postcards.Look on Craigslist,newspaper ads for motivated seller's,if they have a phone number in ad
call seller and discuss their situation.If you can afford it,get a VA on oDesk they can scrape leads off CL for you and send you the leads,just train them as to what you want them to do,they work for you for about $4.00 Hr,you can have them work 10 to 15 hr week. You don't have to disclose to the RE Agent that you are going to use TF,most title closing companies won't do a double closing with end buyers money,you will need to use TF on A-B end buyers funds will close you the seller to your buyer and close the deal.What's working in todays markets are SubjectTo,Lease Purchase Option,I am working these in my Market.Need more info
send me a private message,hope this helps.

whurndon