Question for Jackie in Dallas - Posted by Pat

Posted by Pat on April 14, 1999 at 11:10:40:

Thanks Jim, I have another question though, if I decide
not to use a realtor and chose to deal directly with the seller, what fees would I incurr? I know that if i dealt with a realtor I would have binder fees(earnerst money) deposits but would I have any others.


Question for Jackie in Dallas - Posted by Pat

Posted by Pat on April 13, 1999 at 13:36:27:

Hi Jackie, I want to get into wholesailing and in Ron Legrands course, he says that you should get the help of realtors. My problem is that by me being a newbie, what should I say to an experienced realtor without sounding dumb. I want to let them know what kind of pty’s I am looking for and give them all the paramaers, but I just am confused as to how I should approach them. Should I draw up a letter and send to them by fax and mail and if so, what should it say. I want to visit their offices but, before I do, I want to know what I should say first. Can you or somebody give me some advice


Re: Question for Jackie in Dallas - Posted by Jim IL

Posted by Jim IL on April 13, 1999 at 16:41:45:

Before you talk to Realtors, you need to decide for yourself exactly what your buying criteria are.
Then, simply tell the agents that.
You will find receptive agents, and you will find some that want to make you jump through hoops to get them to work with you.
Ignore the latter.
Remember that they need you, the buyer.
Once you have some agents sending you listings, you should keep in touch and act by making offers.
some agents will lose interest when it takes a little time to get deals, and that is expected.
But, after a while you’ll learn which agents work best with and for you.
After you have a relationship with an agent(s), then you can pretty much layout your plan to them.
I have a couple of agents that are fully aware of what we do, and they are fine with it.
They understand that we put in many offers and “play the numbers game”.
They also know that we are “flipping” the deals, and they are content with that, because they get paid.

We have had agents give us a rough time about, “proof of funding” and other requirements, and I understand where they come from (at least I do now), but when an agent does that, I know to pass them up and use another one.
There are a TON of agents out there, so a few will work for you.
When you tell an agent your buying criteria, make it clear, and even offer tips for finding them.
If you are seeking “flip” candidates, have them search the MLS for “vacant”, “handyman special”, “as is”, “immediate possesion”, “special addendum required” and “Bank owned”.
We also have recently found several with the words, “Corporate owned” in the description that are good candidates for “flipping”.

In my area, most institutionally owned homes are listed at FMV, so we missed a few, when we thought they had to be listed for less.
Those that are listed for less are okay, but we quickly learned what was common, and started to make offers on all, even when listed at FMV.
We just make our offers, and then see if they hit or not. when they do the first time, GREAT! (except we then probably offered too much).
But, when they do not get accepted, we just file them, and try again later. Follow up is the key.
Many times our initial offer is rejected, or countered too at FMV, so we simply resubmit a month later, if the home is still not sold.
Most times, it is the “follow up offer” that is accepted, not the original. (even though they are for the same amount.)

Best of luck to you,
Jim IL