Quick Question

The agent's commission is paid by the seller.

You do not tell the realtor you are not using your own money and that you will be assigning the contract. It is none of his business. You are a cash buyer. That is all you have to tell him. If he asks for a POF ahead of time, you tell him when you have an agreed upon contract, you will be happy to furnish EMD and POF.

Karen

well said

when you look for an agent to work with you, you want to find someone with whom you can build rapport with; and who has worked with investors; otherwise he/she will have lots of questions as to what you are trying to do, and may even suggest that it is illegal.

Hi, Phil...Congrats! ~Welcome to the DG Community!

Yes! Be sure your agents have worked with investors or they personally make property investments themselves, otherwise, they tend to treat you like all the rest of the homebuyers they service. Agents who aren't familiar with investors accommodate A family buying ONE home, not ONE investor buyer purchasing MANY properties over and over. It's a different mindset altogether.

Typically, an agent will jump to pre-qualify/pre-approve their potential buyers–it's their protocol.
Say: "I am a real estate investor looking for some investment properties in (whatever your target area). I'm a ca$h buyer, so I won't be needing a traditional (or conventional) loan approval." Or something to that effect.

Proof of funds are not necessary until an offer has been accepted. (Check out coastal funding POF--it's available to us via this website). They provide transactional funding for investors, if need be. You don't pay them unless you use their services to close on the property.

Try using a newer agent or maybe an assistant to a busier agent...also, I find exclusive buyer's agents help you more. Follow Matt Larson's agent interview list/criteria. It's like hiring someone to work for you...Don't be afraid to ask the questions now. You'll save yourself time later. If they're not a good fit...Next!

Some agents will send you an email contract upfront before the listing. (LOL–there was a NON-assignment clause in the contract)...some won't ever call you back...some will tell you you're crazy!
So it is a good thing to interview each one. Ask each question casually, while getting to know them during your conversation. A few really good agents in your pocket will do you well. Keep at it until you find someone who will work with and for you. Good Luck!

PS. Join an Investors group or REI club in your area...it's a great place to meet investor-friendly agents, among other real estate-minded people!

PPS. Well said, Karen!

Wow...Thank you all for the wonderful quick responses!

Since I'm the cash buyer/investor what if the agent ask me why do I want a list of other investors if I'm one? Is the only role of my agent to find other cash buyers and potential great deals? One the back end I got and or are finding motivated sellers right?

I'm meeting with an agent who returned my call on Monday. I will let you all know how it goes.

Thanks a ton

Phil

Why do you want a list of other investors and where they are investing? You tell your agent that you constantly work on building your network of RE contacts in your area.

Also, you like to know where cash buyers are currently investing because that lets you know where the hot-spots are in your area.

Good Luck, keep us posted!

Angela

You are so right!!! I know first hand they definitely will say you're doing something illegal.

You are targeting the area where OTHER investors are buying...
You want to know where other savvy investors are putting their money––IOW, where the 'hot spots' are to invest your money...
It's just like asking about "as is" properties, longest DOMs, fixer-uppers, etc...
Mention/manage it into the conversations...It's NOT your first initial inquiry!
You're zeroing in on a target. Build rapport.
Look up Matt Larson section in '30 days to Cash' and other places...(say it his way). Ask them in a way that it's their idea. Act savvy (LOL!).

PS. There are plenty of other ways to market for cash investor buyers.
This is one E-Z way suggested by Dean, I believe.

So I had my meeting with an Agent today. I sent a standard email out to about 40 agents last week to see who would contact me back. The agent I met with today was the 1st to contact me and set up the meeting. I was taken back when the agents boss joined us in our meeting today. He was the one who ran the meeting and asked all the questions, it was almost like he was shadowing the agent from a training perspective. But once he started asking questions about how many of his agents I sent that email too I started to get the feeling he thought I was trying to do something unethical or shady. Once I really broke down that I was an investor and I wanted an agent to represent me he kind of changed his attitude.

He was asking questions like..
- What are the names of other investors in my company?
- Would I be willing to buy in bulk?
- Was this my primary job?
-What other areas have I invested in?

The one questions he kept focusing on was a "proof of funds" I told him I can provide that when the time calls for it and I could tell that when I stumbled around that question it was almost like he didn't believe me I was ready to buy right now.

After all that all three of us pulled up some properties on MLS that I might be interested in. Half way through the owner stepped out and the agent and I spoke for about 5 more minutes exchanged business cards and I left. I told her I would send her an email this evening with next steps and what else I needed from her.

A few hours later I received an email from her ( Below)

Really all I wanted out of the meeting was to communicate with her that I wanted her to find other local investors and where their buying. Needless to say it turned out to be a totally different meeting. Did I do something wrong???

Thanks for any input and or advice you can provide on how to move forward or things to do different next time.

Hi Phil,

It was a pleasure to meet you. Thanks for allowing the owner of my company join us he will be helpful on our search for the best investments.
I will need what we call a proof of funds a couple agency forms signed prior to going out looking at the homes.
Proof of funds is required with a cash offer. You may use a copy of the financial institutions statement if the account matches the purchasing entities name. If not then a letter with the statement saying how it will be transferred or connection so to speak to the buyer.
If you have questions call me

I am sure that you did nothing wrong. The same thing happened to me when I first started interviewing agents, as far as the broker joining the meeting. It made me VERY uncomfortable also.

I got around that by scheduling meetings w agents at coffee shops or restaurants after that. Much more comfortable.

The additional forms they are referring to sound like they are going to ask you to sign exclusivity contracts. DO NOT, I repeat, DO NOT sign anything with them. If an agent is doing a good job for you, they should not have to worry that you will be wandering away. If they are doing a crummy one, you don't want to be tethered to them.

It is, of course, your choice, but I would say "Next!"

I am very proud of you, by the way, for going out and having the meeting. It is SO hard to make those first steps. They REALLY do get easier!

Keep it up and keep us informed.

Karen

Please go back and fill out your bio fully.

We don't want your street address but put in your city and state and something about yourself. You will find that everyone will be more responsive to you and we will be able to help you even more if we know what part of the country you are in.

Things REALLY do work differently in different areas.

Sounds like you are serious about doing this biz, so you have to look as professional as possible. Please take this as it is given, as giving you a hand up. I have been here for a long time. i know how we think.

Karen

I just did some research on the proof of funds letter, it sounds like its a form to verify that you have the money to invest. I'm pretty sure this is something that many other new investors have run into. How did you guys get passed this road block? Is this something that all agents will be asking for before they agree to do be partners?

Thanks for the insight

P.S. Thanks Karen for the wonderful encouragement.

Phil

It seems that agents do things a little differently than years ago when I was buying property. No "proof of funds" letter and no pre-qual for loans were required in order to view properties with an agent. Maybe they don't want to waste time with people who can't get loans. It is not really a "road block" if you intend to work with a realtor to find your deals, just consider this a first step. If you don't intend to buy from them from MLS, then I would use other resources to find your information. Realtors make their money when you buy or sell from them. After you do that, you will get help from them as they expect you to give them business. I was surprised when asked to get the pre-qual before being shown more properties now that I'm back looking. Agents are quite busy in most areas and I understand this from their point of view. You might luck out but realize the problem. Check to see if there are local real estate investors groups in your area. Meetings are usually monthly and full of information for new or seasoned investors. Good luck, Sandra

The same thing happened to me at my first interview with an agent. She did not have her broker present, but she gave me a bundle of stuff to take home with me and one thing included was an Exclusive Buyer's Agreement. Like Karen said, they will try to get one signed unless they are really an investor friendly agent. Anyway, when I told her that I could not sign the exclusive agreement, she wasted no time in telling me that her broker told her she had already spent too much time with me. (She had shown me 2 houses that I was interested in.) On the other hand, when I got the agent that I'm using now, she said she realized that I would be working with other realtors and it was no problem. She never asked me to sign an exclusive contract. So there is a big difference in one that is investor friendly and one that is not. Keep looking and you will find the one that you need.
Shirley

That is exactly what a POF is. Read post #1 regarding what to tell them when they ask for one. Tell them as soon as you have an agreed upon contract you will furnish them with your POF. That you make many, many offers and you do not furnish a POF with every one.

I explained to my realtor like this: "Look, if I am negotiating a deal and I show a POF showing $150,00 and I am trying to get the property for $120,000, they know I have $150,000 available and are not going to be as willing to drop the price. I do not show what I have to every realtor that I submit an offer to." It worked. That is what he has been telling them. They asked him who I was and he said, "She is a cash buyer and she is serious about buying." So far I have shown no POFs and I have put in a lot of offers and received counters back.

This will work better if you tell your realtor that you want the lists of standard sales and not REOs and SS.

Karen