FIND A REALTOR AND WORK TOGETHER !!

Just starting, no deals yet. Gonna start with assignments first just to get my feet wet. I've spoken with a realtor who is interested in this. I'm not exactly clear on how this team will work. Other than letting me know when new listings hit the market. how will this benefit him and how will he make his money?

i really cant give you any advice on assignments as i have not much experience with assignments YET i currently have a contract locked up on a 3 bdrm 1 bth sfr that i am trying to assign as we speak.this will be my first assignment if all goes well.
as for the realtor,he/she can really be of help in a # of different ways from networking to leads to advising of good attornys,to brokers and on and on .these agents or brokers r in the TRENCHES EVERY DAY and see,hear,network alot. they would profit from any listing they have that u might buy or you may negotiate a price with them to generate leads, they would profit from an assignment only if it is listed. hope that helps. there is many posts dealing with assignments i am sur you will find EVERYTHING you need an answer to in them.feel free to ask anything jeff as we r all here to help you.

QUESTION HOW WOULD A LEASE OPTION MAKE SENSE IF THE SELLER OF THE PROPERTY OWES 300K BUT THE HOUSE IS WORTH LIKE 280K? WOULD THIS BE A GOOD DEAL FOR A LEASE OPTION?

Was wondering if I should be signing any sort of contractual agreement with them if we haven't actually worked together yet. Just wondering how others of you have done this since i know that many realtors like to make you commit to working with just them...

Any input would be appreciated : )

Thanks,
Suzi

Most agents in my area don't require a signed agreement. If the agent asks you to sign one, ask if you can work with them for a few weeks first to see if the relationship is going to work out. If the agent is a perfect fit for your needs, sign the agreement.

Al

one way that comes to mind in that situation is if the seller is motivated enough to sell to you no money down on a lease option and you sublease to another person for a higher amount with $ down......or a higher payment to you that you can profit from after you pay the seller.you want to have all your figures AND contracts in order before you proceed as a word of precaution!!

that is an interesting ? as in my area i have never heard of signing a contractual agreement just to work with a realtor.are you saying that if you sign this agreement that you cannot work with ANY other realtor??and what r the penalty's if you break the agreement? i would think that you would want to have MANY on your team as each knows multiple contacs and multiple areas.in areas where this is the case that is great advice al thanks.i would be interested to know more about this subject .

The problem with using multiple agents is that if more than one agent sends you information about a property and you purchase the property, which agent is entitled to the commission from the seller. All of them will feel that they have a claim to the commission.

Al

yes al you are correct in that aspect and i have been in that exact situation although i explained that the mls has many properties and other realtors have sent me info the realtor that went above and beyond and contacted after sending info to actually SHOW me the property was the one that got credit for the commission.when they see that you are serious about this rei stuff they deal with you more serious.thanks al for the tip and i agree with you to be CAREFUL in dealing with more than one as you dont want to offend or possibly turn away a potential deal maker that would work well with you.welcome any info or further tips from you as well!! thanks
jay

I am a realtor and prefer not to show more than one or two properties with out a Buyers Representation Agreement. The agreement out lines the agency relationship between you and your agent. This agreement lets the agent know that you are serious and will use them for the deal. Your agent will be more enthusiastic about putting in the time for you as agents spend a lot of time doing research and pulling reports to have the deal go some were else. There are several types of agreements some you will pay commission so be careful. I use a NON- Exclusive not for compensation agreement, I will get my commission out of the sellers end. I suggest choosing a realtor and exclusively use them, once you find the right one, because if you are viewed as a regular client you will get the best of service, the first calls and on and on.

Sellers, good agents are worth their commissions. Statistics show realtors get you higher sale prices faster offsetting their commissions. Put America to work.

Good luck hope this helps.

Jimmy Barbera
Century 21 Davis Realty, Inc.
Grass Valley California

thanks for your advice!! i agree that a good realtor is worth a great deal,i interviewed many as the success academy teaches and have found one that is very motivated and sends me great deals and also has many clients that r looking for land contract [lease options] as well.i meant to communicate that just ONE is limiting but to keep in contact with many as you have many more avenues to pursue.IT isinteresting to hear about the contracts you speak of as well as al because although i am just learning rei i havent heard of or experienced a contract with a realtor other than the purchase agreement,seller disclosure,lead,etc. i will ask my realtor about it.
thank you al and jimmy for your valuable insight.this site and people are great teachers!!
jay

Jbtoggs - Awesome...thanks for posting about this! What a great list of points and advice. I have interviewed an agent and look forward to working with them as I totally agree about the synergy leading to further success.

So my questions on your assignment one that you have in progress with the Realtor ---- Just curious to how the assignments work with a Realtor in terms of their trust of you (and therefore their trust of your evaluation of your buyer before they lock in an AND/OR assigns contract). It sounds like you had done previous deals with them so you just developed that rapport. Is that true?

Was it just a matter of already having your buyer, and requiring Proof of Funds and full disclosure of financial statements within 72 hours of the accepted offer or something? Any requirements you or your Realtor had in this process?

Was your agent completely comfortable on this one doing an AND/OR assigns contract? How many days out did you put it to find your buyer (30 days, 60 days, etc..?) I know you may already have a buyers list so this may not even be an issue, but I was curious.

And do you have your exit/contingency clauses in there in case your buyer somehow fell through and was your Realtor comfortable with these?

Any strategies or tips on "selling your agent" on the above when it comes to assignments? (Especially when you are getting out there but don't have a large track record of deals?)

Whether you are an agent or an investor, I totally believe this whole business is about building relationships. Building relationships with your buyer, with your seller, and being confidant in your delivery and rapport so that trust is established. I have had 18 contracts on houses locked up in the past with an investment company, so I totally get that rapport and trust is critical and I don't have a problem with confidence, etc... when it comes to these things. Just looking for tips on this agent relationship with assigns!

Also....just my extra two cents...here are my two threads on agents:
Thread # 1 (my interview experience)
http://www.deangraziosi.com/real-estate-forums/contracts-and-offers/2919...

Thread #2 (set up of exactly my agent and I would work together)
http://www.deangraziosi.com/real-estate-forums/profit-real-estate-right-...

Thanks for your post and any help you have on this Jbtoggs (and others!) and I'm so glad you are finding success with an agent!! I look forward to learning from you! Louisa

first i will tell you i have read your journal and you def are organized and have a great plan!! next i will say your question about the assignment i had on contract has expired without me assigning to anyone .this i believe is due to not developing my buyers list soon enough or before locking up the property AND prob not as much equity to assign .if there was an enormous amount of equity it would have sold itself.i did not go through a realtor for this assignment.the property owner advertised it in local paper for 35000 and i inspected the property,did my calculations for fast cash offer and made the offer of 25000 and was accepted ....then i had to find a buyer needless to say i did not but tried like crazy even tried to get financing at banks and credit unions but financing at their rates did not make profit goal sense so contract expired.
as for the realtor,i have excellent rapport in all other deals because i sat down and explained what my goals were and that i have joined the academy and showed what i was learning .believe it or not the realtor was learning alot from me even before we did any deals.i would explain to her what an assignment was and basically how it worked as if i was teaching it and learning it all at once even though i had never done it.sooooo i have had the experience of negotiating and locking up one property without the realtor but did not complete the deal.this goes to show you and others that anyone can do it if they just get out there and make it happen,learn from their mistakes then take more action. my realtor is excited to learn what dean teaches also.if you can find a motivated and person willing to learn also it will be your greatest asset!! you can learn from each other and make a great profit. as you said it IS about building relationship!! great questions and i look forward to learn from you as well!!
jay

I am a realtor in southern VA and have represented investors like myself in obtaining properties that have been beneficial for both of us. I would be happy to assist anyone looking to purchase at all time low prices today. My recent 2 sales in October 2009 were with investors in condominium properties that have been purchased below tax assessment and rented immediately creating instant income for them. I currently own 4 properties in the area and rent 3. If you have any interest please contact me by email at blcrealestate@mindspring.com

Please contact me with your listing and your areas covered.

Really enjoyed reading everyone's posts. Needed to do some more research on assignments. I have a conference call with a trusted realtor and have 2 potential buyers lined up. Just learning as much as I can. Thanks!!!!

Josh