Are all realtors cranky and closed minded? - Posted by Lisa

import · May 12, 2000, 6:09pm

Posted by Vic on May 12, 2000 at 19:54:40:

Lisa,

One reason you might be having trouble getting real estate agents to help you is that, once you tell them that you are wanting to do l/o, they know that if you are successful doing it that they may have to wait years to get their commission. In other words, if you do a l/o using an agent, if they get a commission at all, it’s goinng to be small compared to what they would get on a sale. It’s just not worth it to them.

As far as going around the agent to present your offer, I would not reccommend this. People hire an agent to be the go-between so that they only have to deal with one person. If you find a house you like & want to make an offer on it, I would go through the agent first. FSBO’s that advertise in the newspaper obviously have no agent at all, so you can deal directly with them, without any middleman.

Remember an agent is there to make money. They are not there to provide you with information & will not do so unless there’s something in it for them. So, if l/o’s is what you intend to do, I think I would focus on FSBO’s only until you get a good grasp of everything that is going on. Then maybe you’ll have more success dealing with agents. Good Luck!!!

Vic

import · May 12, 2000, 6:09pm

Are all realtors cranky and closed minded? - Posted by Lisa

Posted by Lisa on May 12, 2000 at 18:09:17:

I have been looking for properties to L/O in my area. In the process I have had to speak with a few realtors. As soon as I mention L/O they get cranky and start telling me its a terrible idea, that renting is safer because its easier to get them to leave the property if they stop paying or at the end of a L/O lease, the tenants just want to stay there. They have also said that by leasing for one year, that gives them all that time to trash the place. I’ve tried explaining that I plan to screen my tenant/buyers making sure Im getting quality people who have a real interest in buying the home, therefore taking the chance out of getting bad tenants. I’ve also said that the non refundable option consideration of $2500+ helps weed out the undesireables. In short, even after all that they insist that L/O’s are a terrible avenue to persue.

I have not done a L/O yet. Should I stop talking to all these Realtors and deal strictly with FSBO’s? Is that easier or will I get the same reaction? I’ve been trying for over 3 weeks now. Realtors wont tell me how long the place has been on the market, how much, if any, mortgage is held etc. They want me to make cash offers. What should I do?

One other thing, If I see a house I like, but it is listed with a realtor, is it ok to go to the tax assessor to find out who owns it and make an offer like it was a FSBO? Or do I or the seller HAVE to use the realtor? Most of them are sooo Cranky

TIA, I really appreciate any imput.

Lisa

import · May 13, 2000, 8:23pm

Re: Are all realtors cranky and closed minded? - Posted by Stew (NE)

Posted by Stew (NE) on May 13, 2000 at 20:23:04:

every one here has given you good advice. The only thing that I would add is that you need to educate yourself some more. Don’t get mad, just listen a moment. I didn’t understand when I use to read on this site that even when you are buying you are selling. The knowledge that I think you still need is how to SELL people on your ideas. I started reading some of the books that others talked about on this site. The one I really like is a book called SPIN, I found it at Barnes’ and Nobles, it even has a workbook. Once I understood that I am always selling (not convincing or looking for validation of my ideas), I found that realtor of my dreams. I have been working at this for over a year, and talked to many a FSBO and at least 5 realtors. (I kind of chuckled at your 3 weeks!) SPIN stands for Situation, Problem, Implication and Need.
I found this realtor of my dreams by asking the mortgage broker that I was setting up a preapproved status with, did she know any brokers that understood seller financing and that had done one. Brokers, lenders, agents, and title/escrow companies KNOW each other. The other suggestion is to ask the realtor to they have any investment properties and how did they get them. This is the most important part of my advice. You need to find out what they need and not what you need and give it to them. For a realtor it’s easy, they need their commission. Now it’s time to be creative, is there a way to pay them their commission on a lease purchase that you can live with? Well I’ve rambled on enough. Remember BE-DO-HAVE (If you don’t know wht that means you need to get the book, Rich Dad, Poor Dad). Looking forward to sharing success stories with you. Bye

import · May 13, 2000, 11:35am

Only the cranky closed-minded ones. - Posted by Bert G

Posted by Bert G on May 13, 2000 at 11:35:54:

My Realtor is fantastic! She’s even called me with a couple FSBO’s she knew about but didn’t want to list. She lets me come to the office after hours and play with the MLS computer, even lent me her RE course manuals. Only problem is I have trouble getting her to understand seller carryback mortgages and lease-options. Its all Contract-for-Deed to her.

(Incidentally, some friends had their house listed with REMAX for over a year. I finally convinced them to fire that one and list with Fern. That was less than a month ago. They close the day after tomorrow)(and if you wonder why I didn’t buy it, our friendship is worth more than the deal)

Oh, and as to your question about going around the agent, the seller probably has an exclusive listing agreement, which means they’re legally obligated to pay a commission, no matter who handles the deal.

BG

import · May 13, 2000, 8:46am

Re: Are all realtors cranky and closed minded? - Posted by Doug Pretorius

Posted by Doug Pretorius on May 13, 2000 at 08:46:45:

Don’t bother trying to explain to them, most of them aren’t interested. Also, until you are sure you have an open-minded agent, tell them nothing of your creative investment plans. Sometimes they will only ask if you have cash to put down, but if they ask how much just tell them you have cash available (which you no doubt do, even if it’s one penny!) and you can easily get any extra you might need, from friends or family. If they aren’t satisfied with that just thank them for their time and move on.

I’ve only spoken to 3 agents and they’ve all been helpful, but one in particular is quite open-minded. I suggest telling them you are looking for good investment opportunities and if they can find them and help you make the deals happen, you will be a regular customer. They like the idea of having someone who will close on deal after deal, but as you move forward you’ll need to make sure they understand the better the deal they bring, the better the chance you’ll buy. That way, over time you might be able to train them to think the way you do, to see investments not just another sale.

At some point in all of this you can indicate that you are open to making deals happen, even if they are unconventional, and you are interested in helping people who have a problem (e.g. can’t make payments) but naturally you need to be careful of how the deal is structured so you don’t get burned.

Once you get to the point of revealing your creative strategies, try explaining one or two techniques in detail and showing them how they will get their commission regardless of how much cash you offer or how the financing is arranged.

I just tried this, explaining how seller-financing can be arranged with 2 or more notes and selling one of them for the cash needed for the agent, the closing and the seller. The agent was very impressed and thought it was a great idea!

If I’d just come right out and said I want to buy with no money they would have probably thrown me out the door

Anyway, good luck! You will find the right agent for you sooner or later. If you know any agents personally, ask them if there’s anyone in their office that specializes in investment property, or better yet owns some of their own.

import · May 13, 2000, 6:42am

absolutely not… it just seems that way til you find the right one - Posted by CarolFL

Posted by CarolFL on May 13, 2000 at 06:42:41:

Which we finally did. She will call us with a “subj to”, a “lease option” , an “I think there ought to be a deal here”, and fearlessly present our offers.

It took about 3 yrs to find her.

Wish you God speed in your quest!
Carol

import · May 12, 2000, 10:13pm

Re: Are all realtors cranky and closed minded? - Posted by B.L.Renfrow

Posted by B.L.Renfrow on May 12, 2000 at 22:13:27:

Lisa,

RE agents and brokers can be helpful – but NOT for what you are trying to accomplish. As the posts below point out, RE agents are very narrowly focused. What they do best is list and sell properties, to cash or conventional loan buyers.

When you start tossin’ around those darn creative terms, like L/O, seller financing, land trust and such, their heads will start spinning faster than that girl in the Exorcist.

Especially as a newbie, you’ll find the RE agents will ask you one question: “How much cash do you have to put down?” If you answer little or none, very few of them will spend another minute with you.

If you want to start with lease-options (and they ARE a good place to start, despite the inherent risks) focus on the FSBOs. And forget all that negative stuff the agents are telling you. If they don’t see a commission check in their near-future, they get negative and cranky pretty quickly.

When you have progressed to the point where you are ready to start making cash offers, or you want to list a property for sale, they will become your best friend. But in the meantime, don’t waste your energy preaching to those who will NEVER be converted!

Brian (NY)

import · May 12, 2000, 9:16pm

YES!! - Posted by Soraya

Posted by Soraya on May 12, 2000 at 21:16:41:

I agree with VIC’s advise
Soraya