INVESTOR Vs. REALTORS - Posted by Rick(MD)
Posted by Rick(MD) on April 23, 2002 at 14:26:19:
In the interest of Full Disclosure: I am a REALTOR doing business in Montgomery County Maryland since 1986. I have bought and sold properties on lease option, “Subject To”,
Non-qualifying assumption and regular old bank financing.
I have seen many posts over the years on the subject of INVESTOR Vs. REALTORS.
Let’s clear up a few misunderstandings and maybe we can all get along and make lots of money.
Not all real estate agents understand or care about creative real estate financing, so don’t get upset when they go cold on your “subject to” or “lease option” offers.
Find an agent that understand these concepts and then work out a mutually beneficial arrangement. Here are some ideas on what a real estate agent can do for you.
Let you know about properties before they are known to the general public.
Do free Comps for you on properties you are considering so you can buy with confidence. (The websites available to the public does not give you enough information to accurately figure the market value of a property.)
Review your contracts to make sure you are in compliance with state and federal laws. (How many investors here know that you could go to Federal Prison if you sold or leased a property built prior to 1978 and you did not have the purchaser or tenant sign the appropriate lead based paint disclosures!!!)
Walk you through the process, especially if you are new to real estate investing.
Be a resource for professional help if you ever need it.
List and sell your properties retail for a discounted fee
if you choose to go that route. (Repeat business always gets a discount)
Now here is what you can do for your REALTOR:
Give him all the leads you get that you can’t work with.
For example, a guy calls you off one of your bandit signs and says he has a house to sell but he wants full retail price and all cash. Well instead of just hanging up the phone, why not get all the information you can and pass on this lead to your REALTOR. (for a finder’s fee, of course).
Think of all the leads you throw away because they seem to be not motivated or they didn’t fit the type of investment that you were looking for.
Well there you have it. Let’s call a cease fire. If the REALTORS you come up against just don’t get it, then move on, maybe you will pick up the property later when the listing expires. But in the meantime, when talking to your next REALTOR, explain to them how you can help them and in turn how they can help you, and then see if a relationship develops. If not then move on to the next one.
Rick Riley, GRI
RE/MAX Realty Group
Gaithersburg, MD 20879