How to Train Your Agent

How to get deals @ 60% ARV First Draft
1. Get a real estate agent who is willing to submit 3-5 offers a day 5 days a week!
2. Give them your property criteria and tell them to get a list of all the properties that not only match that criteria, but are also REO’s that have been on the market for >60 days or that have had price reductions.
3. From that list have them pick the 10 that look the most motivated (willing to negotiate, submit all offers, seller motivated, needs rehab/TLC, price just reduced, etc)
4. Have agent start with top one and get all comps that sold within 90 days within 500ft^2 of the same size, within ¼ mile away.
5. Have them do a CMA Comparative Market Analysis of the property to determine ARV After Repair Value.
6. If there is at least 1 comparable from step #4 that are less than 60-65% of CMA in step #5, then go on to step #7, otherwise disregard.
7. Have your agent call the listing agent and tell them that you have a cash buyer that has already seen the property and is interested in putting in an offer in, but because of the extensive rehab it will require, and the fact that there are “X” comparables within ¼ mile within 500ft^2 of the same size that have sold in the past 90 days for less money, my buyer isn’t going to pay more than that for the property, because it isn’t worth any more than that, especially in its current state.”
8. Your agent will then ask the listing agent if they think the bank would consider a cash offer with a quick close and if they will submit it to the bank?
9. If they say yes, then agent then agent submits the following in one PDF file to listing agent:
Page 1- cover page with something like the following:
To whom it may concern:
Attached is our offer to purchase 123 Seasame Street, Barneyville, TX 12345. My client is a cash buyer who is interested in purchasing distressed properties and leasing them out with options to purchase to buyers who can’t currently qualify. They have been through the property and feel that despite the extensive repairs that will be needed, that it will be a good long term investment, but they are not going to pay more than the property is worth to get it, and based on the “X” comparables within ¼ mile within 500ft^2 of the same size that have sold in the past 90 days (see attached), my buyer will offer you $XX,XXX cash for the property. As you can see my buyer is well qualified and can close very quickly, but isn’t going to pay more than the property is worth in a buyer’s market.
Thanks for this consideration.
Cheers,
Oscar the Realtor
Pg2 -4 Low comps
Pg5 POF or bank statement if you have one
Pg6 Photocopy of EM check
Pag7-X Purchase Contract
WHAT’S IN IT FOR THE AGENT?
-If they submit 5 offers a day 5 days a week only on properties you already have cash buyers for, then statistically you should be closing 1 deal a week.
-Even on a $150,000 AB purchase that pays the agent $4,500/week for their 3% commission.
To draft 5 offers a day shouldn’t take them longer than 2 hours /day or 10 hours a week.
$4500/10hrs = $450/hour. Any starving realtor would think that is a fortune!!