In addition to using your own realtor to find great deals, you can use other agents to build your buyers list. It occurred to me as I collected the pile of business cards off the counter of a house we purchased this week that here was my connection to every person that may have been interested in this house. As I looked at each agent's business card I thought "This represents a client that this realtor brought through because they were interested in something in this neighborhood". While, for any number of reasons, they may not have bought this particular house, I know that they are someone looking for a place that matches this criteria. Now when I am purchasing homes at a great discount, I can afford to contact these agents and offer them their commission to bring me a buyer. Maybe even at a reduced rate. hmmm...
Any thoughts?
The agent from this short sale was SO glad to have it done, that he even gave me the name at closing of another lady that was very interested in the house (he knows I'm flipping it). I don't think he expected any commission, was just returning a favor.
I was hoping to use my own agent for flipping houses, but so far she said her broker won't accept anything less than $2500 to be the seller's rep, because that is how much insurance they need for each transaction.
I will keep working on getting her down to $1000, because I would like to keep her in the loop on all ends, but I guess for now, I am a FSBO.
I am sure there are many other ways to use the great connections realtors have. If you think of any, put them in.
Thanks,
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
wow...very smart thinking...awesome advice to anybody, new or who have been doing this for a long time...as for a realtor to help as far as their connections...maybe attorneys, mortgage brokers...sometimes hard money lenders...Atleast the one I am working with...also maybe contractors...at his office, he also has a stand with tons of business cards on it with everything from contractors,to junk removal to exterminators...so their is a few things they may have connections to or help you to find depending on how good and willing they are to help ya...
~TAKE ACTION AND THINGS WILL HAPPEN~
***Something to Believe In***
"If you want something, GO GET IT...PERIOD" Will Smith
***"I CAN'T IS NOT A EXCUSE...IT JUST MEANS YOU WON'T"***
"Obstacles are those frightful things you see when you take your eyes off your goal" Henry Ford
~"Success doesn't come to you...You go to it" Marva Collins~
I was lucky to speak to a real estate agent a few days ago, when I was trying to get some information about a property I saw on realtor.com. I must say, I have never met an agent that's so pleasant. I told him what type of house I was looking for, and he promised that he will keep looking for me. I also explained to him that I was a real estate investor, and I will also keep him informed when I see something I like. He went as far as to tell me, they have their own Title Company supplying the loans. Therefore, the hunt is on.
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.
As long as you are not commiting a crime! It is all good.
You figure out the rest on your own?
Randy
Rina,
What a way to think outside the box! From the posts I have read from you, you are always looking for ways to grow. It helps us all with the great information you share! Thank you!
Rusty
marc, thank you. You are so right! Agents have GREAT connections, and of course a person does not want their name to look bad, so you can expect to get GREAT referrals from an ethical realtor.
Sandra, I'm very excited for you! Once you find an awesome realtor, you want to hang on to them and treat them well!!! They are worth their weight in gold (well, mine might be worth more, she's so tiny! lol) Good job!
Randy, I use the term "use" in a very WIN/WIN sort of way. Never meaning "taking advantage of".
Thank you for your words. (and I like your "2 birds-one stone" concept.
efficiency is good!)
Rusty, I appreciate the encouragement! I know I learn from each little thing we try (myself or others). Consistent growth brings you ever closer to your goal. Lets you increase/modify your goals for the better, actually. Thanks again!
Best to all,
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
From what I understand, the seller is the one that pays my realtor if I buy a property.
Is that correct?
But, what if my realtor assists me in buying a FSBO, or property that isn't listed with a realtor.
How does my realtor get paid?
I assume, not from the seller, so then would I be the one paying my realtor for his/her time?
If so, how much do investors usually give their realtor.
A bird dog fee? or something different.
Thanks
Scott
Have your Realtor approach the seller and see if the seller may be willing to pay a fee to the Realtor if the Realtor brings a buyer and assists with paperwork needed to close the deal. Often FSBO sellers have no idea what is required to complete the sale, and are happy to have the assistance of an experianced Realtor. If the seller is unwilling to do this, and you want your Realtor to be involved with the purchase, it would be up to you to compensate the Realtor.
Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
Let me clarify something. I always say that the seller pays the buyers agent. This is not entirely correct. The seller has an agreement with the listing broker for a set fee, or a percentage of the sale price. The listing agent offers a commission to the agent(broker) who brings a buyer. The sellers broker actually pays the buyers broker. This transaction is usually taken care of at closing, and the escrow agent issues the checks from the proceeds of the sale to the buyers broker and the sellers broker.
Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
for the feedback.
You are being a great help.
Scott
All I can say is; absolutely brilliant! To realize that all those cards are possible leads (potential buyers)!!
E x x x c c c c e e e e l l l l l l e e e e n n n n t t t t t ! ! ! ! !
I always appreciate your posts. Wish you were in my area (you know you're my favorite realtor.
).
Scott, my thoughts on this deal are that I will agree to pay the buyer's agent, which I guess they call the "selling" agent (the one who brought the buyer to the deal. Am I right, Al?), I will pay her $1500. I believe that they usually get 3% (which wouldn't be much more in this case), but since I am FSBO I can make my own rules or not sell. Also,I feel this agent has earned a fair commission because she has been walking this buyer through all the steps to get approved, first-time homebuyers classes, etc. And the lady buying couldn't afford to pay her herself. SO, I will just include it in the sale price of the house (not come down as much), so we all win.
I met with my agent for lunch yesterday and we talked about the $1000. The deals I want to include her in for the $1000, she would be considered a "facilitator" rather than an agent representing either side. She would help with the paperwork, the title company, the closing, but she wouldn't have all the work in of trying to market the property, so would agree to a lesser fee. The only thing is, I really don't NEED her for all that because can do that myself. BUT if I get a buyer who is not represented and is unfamiliar with housebuying, they may feel more comfortable with a middle-man. Then it would be worth having Gail facilitate. And I WOULD like to keep her happy since she is so wonderful.![Smiling Smiling](http://mail.deangraziosi.com/modules/smileys/packs/example/smile.png)
Hope all that makes sense. And, hey, if you have any words of advice on this, please feel free to say.
Thanks,
Rina
P.S. Michael B, you are a character. lol. Thanks for the kind words.
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Good Morning Everyone
What advice/feedback can I get about an investor like myself also obtaining a Realtor license? What have any of you had experienced either.... positive or negitive. I am entertaining the idea??
thanks in advance
"Don't tell me I can't, Tell me how I can."
Al
I am agree with you..I also think so..And also think that Realtors are helpful, but always use a real estate attorney for a real estate contract! Realtors can screw you. Always use a real estate attorney when buying in Miami Beach Florida.
Florida Closing Cost
Thanks to everyone for their Great Posts. I had a great meeting tonight with a potential real estate agent and we seemed to click on many levels. At the end of the meeting-he asked me to send him "Criteria" for the MLS that he has access too (and I dont) after I explained to him Matts 25:1 Offer Strategy from "Prof Real Est Now" book. Any suggestions on a good Criteria List to help him send me options from the MLS seeking Motivated Sellers/Distressed Properties? thanks all for you input.
JER 29:11 Thoughts of Hope; thoughts of a blessed Future
I am a Realtor/Investor with over 20 years experience. There are some great advantages to having a Realtor's licence but you have to be very careful at all times to make full disclosures to everyone with whom you are doing private investor deals. Many Realtors are reluctant to become investors for this reason alone. It could be very tricky and you could expose yourself to lawsuits and potential loss of your license.
On the positive side, as a Realtor you get first hand knowledge of properties for sale, foreclosures, REO's etc. without having to do as much reseach and networking as a non-licensed investor. Plus you could have a natural flow of buyers and sellers as part of you day-to-day real estate activities.
You do not need a Realtor's license to make great money from real estate investing, but it could put you on a faster and more knowledge-based track to success in real estate.
Of course the obvious benefit is that you can legally get paid for representing sellers and buyers without having to set-up assignment deals.
Thanks for the reminder, I did see a bunch of cards in a home I went & see yesterday but never thought of that idea to build my buyers list that way. I know I have a good agent & I always remind her before this year ends I will make $70K & she will also cash in on allot more than what she made last year, since she told me she only made $50K for the whole year. My agent has been in the business for 2 years now & just got her licenses to find properties in another state so that's a great advantage for both of us to make more $$$$. I been flooding my brain with all this good stuff & been getting warmed up all this time, now it's time for the game to start & profits to start rolling in. Thanks to all of you & most of all, Dean with his awesome strategies.![Smiling Smiling](http://mail.deangraziosi.com/modules/smileys/packs/example/smile.png)
P.S. Don't just look at residential properties because right now commercial is also as low as residential to buy & it's easy to profit from it & close on the deal, something to look into to as well.
Everyone Can Make A Difference!
John A.
It has taken us 3 years to find our realtor but we finally did Chris is awesome. He is eager and aggressive he also invests.We are making 5 to 10 offers a week We got our first 45% 0ff FMV REO! We will try to turn it for 20 days if it doesn't move we will rent it out and refi it. We bought it with private money. We didn't know how to do this but our realtor did he sent us his templet of a letter he uses, which basically says I have private money. and it worked! Chris is just as excited as we are. I keep telling him to stick with us and we will all make some money.
We are now looking for our niche here and are looking at properties at are not moving. We found another private lender that wants upper end houses.ANY ADVICE HERE???!! Yesterday Chris took us to look at some houses that a hard money had to take back and one is brand new these houses are all over 200k and have neighboring homes that retail at 300k We think we can get these for 50%off. They will rent out for 1300 to 1400 .Any and all advice is welcome.
"Don't tell me I can't, Tell me how I can."
I love the idea of using the cards to build your buyers list. Thanks Rina!!!
How do you find these realtors? Is there an ad you can put on Craigslist or something?
(not sure the spelling) anyway I lost a chance at a really good deal because it seems buying a fanie mae owned property the BUYER has to pay all costs. That would have put it over what I can afford to front in cash and they would not roll it into the loan. Anyone know how to get around this in the future?
Script for Real Estate Agents
The key to making your relationship with a Realtor work is bringing something to that relationship that the Realtor needs. This is called leverage. You may not be buying anything yourself, but if you have a pool of investors already lined up, then most any Realtor would be thrilled to help you out. With a strong investors list you have the power to do multiple deals over time and put tons of money in the Realtor’s pocket. Without investors lined up you may not be able to do anything.
“Hello, my name is (Your name), how are you? I’m just getting started with real estate investing and currently have a group of 17 (or what every number you actually have) investors I’m working with. I have already spoken personally with each buyer, so I know specifically what these investors want and how often they want to purchase. My intention is to find property that match their criteria, put the properties under contract and then sell the contract to the investor for more money.”
Questions for Realtors:
“How long have you been a Realtor?”
“Have you ever worked with investors before?”
“Do you invest personally?”
“How many deals have you been closing per year as an agent?”
“Have you ever worked on an Assignment of Contract?”
“Can you email me listings that match my buyer’s criteria?”
“Are you willing to write & submit up to 10 offers a week that are 25-35% below market value?”
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
I wonder how successful this script is, and if anybody has used it.
I want to add to that question. If you find a buyer for the realtor how does that work?
Phyllis Jackson
Like with any script, use your own words and make it your own but the script definitely works. Our students have used it many many times, that's why Jeff posted it. It's important that you "interview" your agent. Not in the formal terms but make it conversational. Ask them if they've done any investing etc. It will help you understand where they are coming from and if this is someone that you will want to work with or someone that will waste your time.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
I am a Realtor and would be investor, too, and one of the reasons why I have been hesitant to get started in investing (particularly wholesaling) is because of what you mention. When one is under the scrutiny of their licensing authority (the Texas Real Estate Commission in my case) and the associations of realtors, it's hard know what to do. It didn't become clear to me until this weekend that disclosure was the key, and I've seriously lost sleep over the dilemma of being a realtor and wanting to wholesale. Although, if my wholesaling was to become successful, I would quit being a realtor.
I have decided to make up a disclosure form and have the seller and the buyer (of the contract) sign it. I also would not use the state of Texas's contracts. I would use a different contract and addendum to it, perhaps.
Also, I would not actually do the wholesaling, at all. I'm forming a separate corporation to do it. The corp. would be wholesaling, rehabbing, etc. It will be a totally different company.
Rick Allison, Realtor
Amarillo, Texas USA
Find comps, private lenders and cash buyers nationwide: www.TheRealEstate.PRO
Foreclosure and pre-foreclosure search engine: http://tinyurl.com/b6w7h6o
The People Helping People Movement: www.greatEPXsite.NET
Bumping!
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.
Way to go Rina. Opportunities create success. Being able to utilize all resourses
helps to maximize potential.
Larryc from Rhode Island
I know how much a realtor can help you but do you ever get that thought in your head that they could go behind your back and deal directly w/the buyer. Due to them having MLS access it shouldnt be a problem for them to find the owner. That is my only fear of working with a realtor. And most of them aren't wholesaler friendly because in a sense we take their jobs.
bringing it back for those of use who missed it when Rina first posted it...
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
this thread is a great tip...
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...