Realtor Won't Return Call

Most RE agents prefer to work with retail buyers. Once he took wind of your plan, he most likely ran to the hills. Agents do not want to be blacklisted as lowballers. Additionally, unless you have a buyer agency representation agreement, the agent's fiduciary is to the seller. By law he must look out for the highest and best interest of the client. He does not necessarily have to be the listing agent to represent the seller. As long as he does not have an agreement with you, then by default he represents the seller.

You have to come in with realistic offers & be able to back your reasoning on repair costs & CMA's. A REA wants to submit offers from cash investors, But they must be Win Win Offers.

Tom aand Jerry right is it? I agree you can'tgo so low in this market now that is so hot you don't have too either buyers will pay more now too we haveto do what is working now not five yrs ago

on every deal; a 10% to 15% to 20% profit margin is respectable. Then the more deals you get under your belt, the more everyone will want to deal with you !

Thanks and will definitely take under advisement. However, I haven't seen the property in order to make a bid, therefore, the realtor has no clue to my intentions. I guess I'll have to contact another agent, or a managing agent in or to see property.

doing it. thanks gentlemen.

WALT

I agree with everyone above. The market has shifted, more in other areas so point being said if you offer $30K on a property that is listed for $84K of course the realtor is not going to call you back. I can bet there is other investors offering $60k-$70K or higher on that same property already, depending on what market this property is in. Go get a agent on your team and have them send you a list of the last 90 days of property that sold for cash and ask to know what the property was listed for and then you can determine of much off the asking are properties being sold for. There you will find your sweet spot to submit offers. Good luck

I have Realtors walk since my offers have been low and none accepted. I was expecting to make $15,000 to $20,000 on fix and flip REO properties but this did not work for me since investors in the market (St Petersburg, FL) were offering asking price for these properties that needed $20-30K for rehab. Allowing for 10% costs on ARV, plus rehab and profit over 3-4 months did not get me any deals. Hence the Realtor "walked" and does not return my calls. This is the second realtor who has left me!!
I have now to look for another realtor in the area and see whether I can close a deal or two in the next few months.
Ron

Agents do not want to be blacklisted. Unless you have a buyer agency representation agreement, the agent's fiduciary is to the seller. By law he must look out for the highest and best interest of the seller client. Presenting lowball offers is not the highest and best interest of the seller client, it's the highest and best interest of the buyer customer! As long as he does not have an agreement with you, then by default he represents the seller client.

It's funny how I have never seen this very important topic discussed on this forum. The first and foremost thing that any wholesaler/investor must do is sign a buyer agency representation agreement with their real estate agent/broker. It's basically a simple agreement protecting the best interest of both the buyer and agent. The agent is assured that their efforts are not wasted, while the buyer is assured of an advocate working for his/her best interest. Buyer need not pay additional commission or fees.

This site used to be a place of enlightenment and information. These days all we read about are endless praises and pats on the back. Congratulating and praising belongs to the PM area. The public forum must be a place for useful and relevant information that helps other fellow investors. Topics that actually make a difference to anyone involved in real estate.

What kind of formula did you use to come up with that offer? It s WAAAY below anything that Dean teaches.

If the ARV is $110,000, multiply that by .70 (70%). That will give 20% profit for the end buyer and cover his holding costs.
Then subtract your repairs and your wholesale fee.

$110,000 x .70 = $77,000-$20,000 (repairs)= $57,000-$5,000 (fee I would suggest for that) = $52,000 for your MAO (maximum allowable offer)

Where are you located in the country? Your 70% may vary according to that, but in most places that will still work.

Best wishes!

Karen

You also do not have where you are from on your bio. This is really important when asking for advice. I teach RE classes all over the country, Canada and the USVI. It really helps if we know where you are.

Most everywhere now though it is a sellers market. Because of that, many speculative buyers are paying full asking price and higher, anticipating that the market is still going to increase. You will have MUCH better luck looking for properties not on the MLS. There will be much less competition. Most of the time, you will be the only one who even knows it is for sale!

I suggest you fill out your bio more fully and start spending your time on bandit signs and other marketing. You will have much better results!

Good luck!

Karen

Point well taken from all of the posts. However, I never made an offer because the realtor has not shown the property. Therefore, the realtor has no idea of what I was considering.

The agent does not have incentive to work with a lowballing wholesaler. It's illegal to knowingly undermine their seller client's best interest. If you want the agent to be on your side then you must hire them for that specific purpose, otherwise, every agent you come across will shy away once they realize your intentions.

Everyone likes to toss around the 25:1 approach, but most fail to inform you that it is illegal for an agent to intentionally send low offers with the hopes of taking advantage of that one desperate situation. If an agent wants to do that then they must have a written agreement with the buyer and disclose to the seller that they are in fact representing the buyer with the intention of securing the highest and best interest of their buyer client.