Working with realtors

[Doug Pretorius (ON) 9]

Hey folks, I sent out a bunch of emails to realtors last night and got two replies this morning. One has a potential deal and the other wants to hear more.

 

My question is: How should I explain the concept so that the realtor understands it well enough to explain my offer to the seller, without understanding it so well that they try to do it themselves?

[MichaelC 160]

Speaking in general terms, I don't think there will be too many Realtors who run with your idea with the intent of stealing deals from you. Most are of the mindset that they earn their living through commissions, not investing. As such, I think they are more concerned with getting your offer in the homeowner's hands.

Not to say an unscrupulous one or two won't pop up now and then.

But should you find you've been stabbed in the back, a quick call to their Broker and the local Real Estate Commission will give them pause for trying that again.

[Doug Pretorius (ON) 9]

Ok fair enough, thanks MC.

[Jonathan RexfordFL 8]

Doug,

 

I have two realtors that I buy houses from subject too mostly. They understand that I will buy when there listing is about to run out. I will pay the commission in most cases. They get paid. If I am not available to buy then they know it also.

 

I am sure it would work for lease options also.

[Adam King (MI) 1]

I think a lot of the time when we bring up this issue, we leave something out. Let's talk about why a Realtor is involved for in the first place.

 

I have four Realtors and three brokers on my team now. One is also a real estate attorney. Once thing is for sure, we all know our places. We still struggle working together on "my" deals if the order is out of balance. Their jobs have been completely revised since their relationship with me and what I do. All and all I do not need the services of a Realtor because of such a tough buyer's market. I don't even bother looking into the newspapers much anymore because it's all listed properties and barely any FSBOs. I'm not saying this as an excuse or even to say don't do it, because if you're good at solving problems you'll still get deals. But don't expect to get too creative when there's a Realtor involved.

 

I would have to say depending on your market, your attitude, your professionalism and your ability to weed out the willing, there isn't much you can do to hide the fact that getting deals on your own is still the best bet. But ask yourself this first, what is the real reason for working with Realtors in the first place?

 

I know Wendy (Patton) does this a lot, but she's a broker. There's more in the pie for her and damn that's respectful. She's a smart lady that found a niche. But will that niche work for us?

 

I'm not a broker and I do not ever plan on being one. I'm an investor and I need to make sure that although I follow the law, I'm still the one calling the shots when they need to be called without worrying about disclosing the fact that I'm only looking for a commission. That has gotten too old to too many sellers.

 

You want to work with a Realtor? Make yourself so damn busy buying properties that you don't have time to sell them. Then hire a good Realtor that can bring you good buyers and close a deal for you. Want to really get ahead of the game? Get a great mortgage broker that can do something with the "extra" buyers that the Realtor brings to the table. You'll be totally ahead of the game and everyone will be doing their part. But remember, no referrals to the Realtor unless they want to go through the 13 steps of RESPA for a measly fee.

 

My opinion, if you're going to network, network with the people who have already prescreened the buyer the way you want them to be screened. Network with investors. Find out something they don't have and pay them for the lead. It's a win/win on the right caliber.

Just my two cents,

Adam

[Doug Pretorius (ON) 9]

Here's my thinking... I want to reach sellers of homes that are vacant or will be soon because they're moving to their new home.

 

Vacant homes are easy enough to find with a quick search of the MLS. But soon-to-be vacant homes are not. Only 2 people know that the house is going to become vacant: 1 The seller, and 2 the listing agent.

 

Now I could send a postcard to every single listing hoping that the sellers of these homes will call, but I don't really feel like spending $2k a month in the hopes that I'll get calls and be able to convert them.

 

Or I can find listing agents who will call me when one of these situations comes up.

[happyardy 0]

Here's my thinking... I want to reach sellers of homes that are vacant or will be soon because they're moving to their new home.

 

Vacant homes are easy enough to find with a quick search of the MLS. But soon-to-be vacant homes are not. Only 2 people know that the house is going to become vacant: 1 The seller, and 2 the listing agent.

 

If I may add my 2 cents, you could also have a relatoinship with one of the big mover companies in your farm area/city. These people could be a good source of information about which families are moving out and which houses would be vacant. I am saying this out of my own experience.

 

I have recently moved(about 10 days ago) to St. John's, NL and my mover agent(the guy moving my car and household goods from Lake Charles, LA to St. John's, Canada) asked me if I was going to be buying a house upfront. I said, well I have just arrived but I would be definitely interested in hearing him out. He was handling the move of another family moving from St. John's to some place in BC near Vancouver and they had told him that they were looking to sell it by themselves, atleast initially before letting a Realtor take over. Before I knew anything, my mover agent placed a call on his cell phone to this guy and said to me "Here, why dont you talk to him.."

The house was too big for me to live in there(rental or purchase) and being totally new to the city I wasnt in a position to make any creative offer etc. I havent even started my research here. This seller was going to call up the realtor in a day or 2 and have it listed.

 

Anyways, one thing I realised was that the moving companies were a very good source and especially since people contact them(even just to take a quote etc) quite a few days before they move out, movers could be a very good source of information on prospective vacant homes. Once I am settled down here a bit, I would be making contact with this guy and will let him know about what I plan to do and how he could earn a referral fee etc.

- Ardy

[Doug Pretorius (ON) 9]

Great tip, Ardy! Wow I just looked in the phone book and there's at least 30 - 35 local moving companies.