OfflineThis is a question that I find people asking a lot on this site.
I’ll take some time to address it here. First, I need a few things from you as you read this. I need you to have an objective mind set, free from your own personal emotions. Also, have an open mind and place yourself in the complete role of the Realtor or Agent, this will help you understand what the Realtor or Agent concerns are. If you do this you will increase your chances of finding a long lasting Realtor or Agent relationship.
As I think back and share my experience, I want to let you know that I am an Investor with a real estate license and member of the largest lobbying force on Capitol Hill, The National Association Of Realtors. I am a Realtor and not a Real Estate Agent. There is a huge difference. Realtors adhere to a Code of Ethics and Professional Standards mandated by The National Association Of Realtors. Realtors are also required to have a required amount of educational requirements set forth on a yearly or biannually time period by The Association, Local Boards, Commissions or Division.
The education and specific designations a Realtor has become invaluable when negotiating, writing offers, knowing State Law and Contract Law. Real Estate Agents are NOT mandated to adhere by the Professional Standards and Code of Ethics, Realtors must adhere to. Be sure to ask the Principle Broker of the firm the Agent works for if they are a member of The National Associations Of Realtors. If not, if it were me, I would consider consulting a Realtor.
When I hear investors say “You don’t need a Realtor” I often say nothing, knowing in my heart they don’t know how much of a disadvantage they are placing themselves in the market with other competing Realtors who are investors, shopping for the same product they are. Why would you not use a Realtor when purchasing property? The service is free and is generally paid for by the seller, unless that seller is a FSBO at which time the commission can be negotiated or split.
It is imperative you get a knowledgeable Realtor on your team, and if they were an Investor that would be a complete home run. The best Dream Mentor would be a Realtor that Invests. Realtors are on the inside looking outside, not on the outside trying to get a look inside.
One designation some Realtors carry is the “BPOR” designation. Keep in mind many Realtors do not specialize in any area or invest, but the ones who do has a certification and taken the educational requirements and extensive training to carry the designation. One of my various designations is “BPOR” which stands for Broker Price Opinion Resource. Basically, a Realtor with this specific designation completes valuations for financial intuitions’ real estate owned. In other words, I give my Professional Opinion and Professional Advice to banks that have taken back inventory through the foreclosure process also known as a REO. Many times Realtors that conduct such valuations and BPO’s on bank inventories are REO Agents. I am a REO Realtor and generally know which bank foreclosures are about to come on the market weeks before the general public or Non REO/BPOR Realtors have any idea.
However, can I be straight forward with you as several thoughts come to my mind? When the bank tells me it is time to list their property, I list it, then a second later if I don’t buy it myself I make one or two phone calls and my client who offers his best offer, signs the paper work on his IPAD and email me the offer with the copy of the EMD, and just like that the property goes under contract and is in the MLXCHANGE System as Pending before you get off work to view it or your Realtor gets out of bed. How do you compete on such a level if you do not have a savvy Realtor on Board?
Here is another scenario, if we are both looking for the same product and have access to the enormous private money that’s out here on every street corner. Why would such a Realtor even consider calling you at all? Why not just do the deal myself and make way more than a commission or wholesale it themselves? Do you know this goes on across the country each day as I am a competing investor looking for the best deals for myself and clients? I’m saying this so you will know how important it is to find a not only Realtor but a Realtor on the inside that’s in the know. (BPOR/REO Realtor) I’m also speaking from personal experience, but lucky for you, like I mentioned earlier every Realtor is not an Investor, not to mention a BPOR/REO Realtor. Also, every investor isn’t in the foreclosure REO market; I have no clue why, at the discounts we are purchasing single family properties for.
Breaking inside the REO/BPOR Realtor code keep this in mind:
!. Find a REO/BPOR Realtor that’s hopefully an Investor. (not many around who are willing to share their secrets with you, but they are out here. If they are not an investor no biggie we will gladly settle for them being a REO/BPOR Realtor.) You find these Realtors on the many Government websites where they list their REO’s.
2. Treat this person like Gold! Keep in mind this person is the link between you and the asset manager client they represent! When I present your offer to the asset manager I represent, I tell them why they should accept that specific offer or decline it and advise them accordingly. The asset managers I represent have a great relationship with me. They value my professional opinion and judgment!
3. Know this…. Realtors get paid ONLY when they Sell a property! Never waste a Realtors time if you have nothing to offer them. Stay humble don’t think that you’re the only investor in the city with access to Hard Money. BPOR/REO Realtors usually have a buyers list like you would not believe! The mail service I use has a 2,000 list limit for free. I have surpassed that with buyers in a 200 mile radius. I usually only call my first 5 if I make it that far. If I did an E Mail blast through my buyers list, my phone will ring for days. I don’t want that at all!
4. Write the best offer you possibly can the first time around. THIS IS NOT THE MARKET TO LOWBALL! (Jan 28, 2013) That’s a surefire way to never get a call from that REO/BPOR Realtor, as they know you’re not as serious and a waste of their time and gas. Do not expect such a Realtor to write a ton of lowball offers for you! You’re going to have to find a beginner Realtor who doesn’t know any better to do that.
5. The people such a Realtor calls first are people who are friends, family and clients. They are people who values the Realtors time and show the Realtor with action. I cannot count how many times my top 5 clients who I call to purchase these REO properties take me to Subway or at the end of the week give my Broker a $50 gas card to give to me for my time.(Realtors can only be compensated by their Principal Broker) Nor can I count the times that my clients have given my Broker a Bonus to give to me after they have flipped the REO property I decided to call them about. I truly remember these clients and they are my VIPS! I ALWAYS CALL THEM FIRST!
I could write so much more on what is going on in the industry and how you can get on the inside track with these REO properties, however this is starting to turn into a book.
If you need help finding a Realtor let me know some basic information about your skill level, goals, location and I can help you find a Realtor in your local area that may suit your needs, as we have a National Network.
I hope this did not offend anyone. However, we sometimes need to view the field from the other side of the fence sometimes. 
Happy Investing Everyone !
*I am not offering Professional Advice, but I am merely sharing some thoughts*
*Disclaimer I am not an attorney nor am I offering any professional advice, just some thoughts I am sharing*
Now that's what I call INSIDER INFORMATION!!! Thanks for sharing.
Your Generosity never goes unNOTICED,
Thanks!
You shared so much and I too am grateful for your time. When I first started wanting to do wholesaling, I followed the script and my first call out got a response from one of the real estate agents that Matt Larsen suggested. They called back, rather the owner called back and said he would have one of his agents call in the next couple of days. She did not and when I got her on the phone she was less than helpful, but she said she would pull some listings and send them to me. Two weeks later, nothing in the inbox and I think I went into a tailspin and or "went off the grid", however you want to categorize it; I just stopped trying for a minute. And then, yea, I got my courage back up, called another agent and guess what, he was wonderful. I want to reread your post, so I do this right. Thanks again for sharing. Denise
I have been contemplating the same desination you have achieved for some time. I am from the Space coast in Florida and have gotten my License in Real Estae once and passed the class again but did not test for my License due to an injury on my 9-5 job at Walmart. I have recently reached full recovery and ready to try again. I am a Vietnam Vet and at 58 starting over after spending almost 20 years out of the country. I have followed on DG almost 2 years now and I am anxious to get started and stay going this time. You can see all this on my Bio.
But What I really want to ask is YOUR advice on which way I should go first? Should I go for my license as an agent in Florida again; or should I stick with Dean and go all out as an investor first? As I related earlier I only work at Walmart part-time right now as a full time job ($14/hr at 32 hours/week). Which leaves me very limthed as far as finances go. I also have a $70,000 debt to the State of Arizona which I want to wipe out ASAP. I am very familiar with what you have said about being a "REALTOR" vs. just an agent and I understand the expenses and time that go into being a designated Realtor as you are and the advantages it holds. I would also like to achieve such goals in that also and in commercial businesses and properties.
Any advice you could render on a personal basis would be very much appriciated and will be taken to heart as I proceed to make 2013 a better year than last year.
Frederick R Bauder
I, however, contacted you at one point and you told me that I was too new; although you stated earlier that you help beginners? Puzzled here? Not really sure what you are doing as I also stated that I was not a total beginner.
I already have several real estate agents that are investors, but thought you might have some insight, but did not really find that you could do anything???
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
Femailceo youre ahead of the crowd if you have several Realtor Investors on your side. Good Job !
*Disclaimer I am not an attorney nor am I offering any professional advice, just some thoughts I am sharing*
Heart2beat
Youre welcome, thanks for replying. 2013 is going to be your year. I wish you the best !
*Disclaimer I am not an attorney nor am I offering any professional advice, just some thoughts I am sharing*
Sorry that Realtor blew you off. That happens, and when it does don’t let it hold you back . Sometimes you have to give them incentives. If I could if you do not mind, I'd like to speak from experience and I hope you get what I am saying and use it to get knowledgeable experienced Realtors on your team that loves to work with you. Can I speak frankly please? Don’t take offense, im mentioning this, so you can see what sometimes the Realtor you speaking with is thinking in their head. Lets view it from the other side of the fence.
First understand Realtors aren’t nonprofit. We work hard to turn profits for our brokerage firms. So to include myself I’m careful and very selective who I CHOOSE to work with. If I perceive someone with the wrong energy (negative), slack, don’t have the proper documentation like a proof of funds letter, or a letter of intent, argumentative, doesn’t have a plan, or not sure what they want. If either of those are the case I’m not going to work with that person because I’m not going to take them as serious as someone with a great attitude, kind, has a letter of intent, proof of funds and knows how to execute their business system of acquisition and besides who needs the headache? You have any idea how many investors are out here with a pleasant attitude and a true pleasure to work with? Being a REO/BPOR Realtor I’m in no shortage of eager investors wanting to work together with me.
Last thing a Realtor wants is to ride around looking at 50 houses wasting time and gas with someone who wants you to write 50 lowball offers that’s going to get rejected in this January 2013 market! There is a time to lowball, however, THIS IS NOT THE TIME TO LOWBALL! Know your numbers and make your best offer 1st! The market has been growing and home prices have been increasing for the last 4 months in a row! Generally I refer such people to my competitors and I’m sure my competitors referred them to me lol. Make sure you’re not one of the many that get bounced around and can’t figure out why, then say “I can’t find a good Realtor”
Case and point. Over the weekend two beginner investors called me who I wrote off as a complete waste of my time in 2011. They have been spinning their wheels and been bounced around from Broker to Broker coming up with nothing for 2 years. They invited me to dinner to discuss a business plan, but this time I noticed something about them, they had grown and changed. As I ate they explained the situation and this time they weren’t demanding a list of foreclosures to write lowball offers on.
They realized they were on my time and humble. They simply said they needed my help, and had some ideas but wanted to know what my thoughts were. One stated “we work 12 hour shifts at work and do not have a lot of time nor the experience” Then they proposed a business venture and gave me some real incentive to help them.
What I’m saying is the best relationships I have are the ones that make it interesting to me and worth my while. Don’t be like the many I have referred to the competition and the competition referred them back to me. Nothing wrong with spreading the wealth or just taking the Realtor to subway or somewhere inexpensive to discuss a plan. That is much better than cold calling a Realtor that doesn’t know you to ask them can they take time out to search and email you a list of properties for you. Remember Real Estate is a Team business, give your Team members real incentives to work with you and more than likely they will remain on your team, I know I would.
*Disclaimer I am not an attorney nor am I offering any professional advice, just some thoughts I am sharing*