Posted by Craig on March 07, 2002 at 09:02:49:
Tim, thanks for the awesome feedback!
Realestate Agents??? - Posted by GaryO
Posted by GaryO on March 06, 2002 at 20:55:10:
Just one question,
I’m new to REI and am currently collecting leads from two realtors. The problem is, is that they are submitting a bunch of listings with only the info about the house (beds, baths, size, ect.) and not anything about the sellers financing. How do you go about making offers on these houses in which you have no clue on the motivation of the sellers? It seems like I’m wasting a bunch of time looking at all these properties and don’t have a clue on what to offer. I also don’t want to guess at what I should offer. It would be nice to know the current financing of the seller at least. I asked both agents to try to find out some of this info and they don’t really have a clue about looking for motivated sellers! One agent is trying and she tells me whether or not they will carry a note but nothing on the existing financing. I belive that I need this info on the sellers financing before I can make an offer right? Am I missing something here? I’m thinking about ditching the realtors and just running my own adds and cold calling. What do you think? Please, Please help!!!
Thanks CRE Online Community!!!
Re: Realestate Agents??? - Posted by RealEstateInvestorPro
Posted by RealEstateInvestorPro on March 07, 2002 at 20:02:31:
I am also an agent. You’ve got to remember that a real estate agent who has the house listed has a fiduciary responsibility to the seller to not disclose the sellers motivation for selling a house. I sure can’t disclose what their financial situation is, they are trusting me on their behalf to get the best deal for them.
On the other side of the coin, I can approach other agents on behalf of an investor and help to negotiate and work with the sellers agent. However, that seller is not going to give me any information either on their motivation.
I work with a lot of investors. I’m happy to provide hot sheets, leads, etc. You will find a lot of BS out there regarding forclosures etc. Most forclosure’s are being handled by asset management companies for the banks. They dole the foreclosures out to Realtors. It is very rare to be able to deal with a national company on a foreclosure if you are an individual investor.
You can deal with local foreclosures but most mortgages are sold on the secondary market anymore and most foreclosures are done by big banks and mortgage companies not by your local bank.
Why do I deal with Investors? I’ve sold real estate for 8 years and work primarily with investors. My expectations are fairly simple, I will dig out the very best deals that work for your criteria you present to me. If you are able to work fast and simple from the leads I give then I will continue to work. That means having your cash ready, not pssing and moaning during an inspection period, and buying the house. I also expect to be allowed to market the home back out to retail. If you as an investor can find an agent like me to work with, you will do very well in this business. I keep about 5 groups in a constant supply of homes, I hear about them months before they go on the market, I know first when they are on and these guys are ready to go, the do the repairs in a few months and have them back on the market, I’ve usually got buyers ready to go. Simple, and we all smile on the way to the bank.
What I see a lot of in this forum is severe cases of analysis paralysis. Here is the absolute best advice you will ever hear. You will not be able to find this in most books out there as it is a highly kept secret. Once I tell you this information, you may never have to buy another course or attend a seminar again. Of all the investors I’ve sold RE to over the years, I don’t know one who has attended a seminar but I know a lot of millionaires. I’m not jamming the seminars. You’ve got to spend an enormous amount of time studying, reading, getting active in your local groups and following boards like this. I’m just saying you can follow all of the guru’s and never get going. And if you buy any of that stuff about getting rich with a few hours a month then you better forget REI. Now, here is the magical sercret that will set you free. Get your pencils out and write this down, Read it, Live it and you will be on your way to success. I promise. If you want to pay me for the advice, donate 150 bucks to your local animal shelter! OK here it is…
Get your money in line, buy, fix and sell. That is it. Deals are there, you’ve got to act and act with conviction!
For the amount of time many people are scrounging for a super deal they miss five good deals go by under thier nose. It is rare for the 125% ROI but you can do 5 or 6 12% ROI in the same amount of time and get your cash flowing.
Good luck. Now, I’m going back into lurk mode until I feel the need again.
Re: Realestate Agents??? - Posted by Carey_PA
Posted by Carey_PA on March 07, 2002 at 08:37:06:
When dealing w/ realtors I don’t ask anything about the existing financing because it’s USUAL a bank owned property and anything I want to know I go into the tax records for. I usually keep it pretty simple with realtors, i.e. low ALL CASH offers. When using a realtor I usually target homes that are reo’s, etc. but I also target homes that have been listed FOREVER and are owned by normal people, then and only then I may ask about the financing, but before I ask I’ll go into the tax records and see what they paid for it and when, and see if they have any 2nd mortgages, etc.
But for the most part if I’m going to try to do something out of the “norm” I only do that when sellers call me…not when the home is listed with a realtor.
CAREY
Re: Realestate Agents??? - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on March 06, 2002 at 21:08:25:
I think you know from your last line that you need to get sellers calling you. An agent can get you a list of homes for sale, but you do not know the seller’s motivation. Usually when someone is selling with an agent, they are trying to get full retail for their home.
Re: Realestate Agents??? - Posted by GaryO
Posted by GaryO on March 06, 2002 at 21:23:44:
Are there any tricks to dealing with realtors though, or do you just flat out avoid them.
Re: Realestate Agents??? - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on March 06, 2002 at 21:37:00:
Ok Gary, you made me laugh and I was trying to drink my tea. I am an agent.
You can use agents, for a set criteria you are looking for. Here is an example set up I have for a fellow investor.
Priced under $100k, 2bd+, 1bth+, 6 different zip codes.
So anything that falls into this criteria, I e-mail to him. If you constantly see this and know the prices well, you might find something the day it hits the market. Like if homes are going for avg $100k, and you see one going for $80k, you might want to see why.
You can tell the agents what you are looking for and let them bring you properties that match that criteria. If it don’t match, you don’t need it.
So this helps you see what prices are in a area and you might find a deal out of it when something is out of the ordinary.
Another setup I have is one that shows me all properties that are willing to go L/O withing a 2 county range, under $150k, only certain cities and map locations; etc…
By having all homes that the owners are already willing to take a L/O can let you know if you see a price deal, you may be able to work with it.
Ask your agent what they can do for you, while you are telling them what you are trying to do.
Additional question for Tim Fierro - Posted by Craig (CO)
Posted by Craig (CO) on March 06, 2002 at 22:46:31:
That’s helpful information. Can you share with the rest of us who are still green in this business what the best way to approach agents might be. Basically, what do you as an agent get out of referring these potential investment properties to investors…especially when they plan to L/O the properties? Finders fee?
Additional question for Tim Fierro - Posted by Craig (CO)
Posted by Craig (CO) on March 06, 2002 at 22:45:03:
That’s helpful information. Can you share with the rest of us who are still green in this business what the best way to approach agents might be. Basically, what do you as an agent get out of referring these potential investment properties to investors…especially when they plan to L/O the properties? Finders fee?
Re: Additional question for Tim Fierro - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on March 07, 2002 at 03:40:56:
If another investor wants to put in an offer on a listed property, they will give it to me. They are looking to see if there is a deal at all to be had, and if the numbers work for them, they might as well let me have the commission on the deal.
I have never had anyone try to do a L/O with me as the agent for the buyer. Should that happen, and they need to take care of my commission, I would be very receptive to any idea they have. The seller is paying the fee, so it is there ultimate decision, but a buyer can help offer solutions. I don’t care if the money is cash or a note payable over time, or even paid as a monthly payoff. I am flexible. Same would go with being the listing agent. I am open, but I also owe my sellers a fiduciary duty first, and my commissions second. This means it needs to be a good deal and that means it is highly unlikely you would get to my sellers with nothing up front for my sellers.
On the listing side, and an independent agent, I can set whatever terms I want with my sellers. So for fellow investors, I can offer a limited service type of listing for a couple hundred up front, and a point on the back end. This way I get my expenses up front, and the investor is showing the house for the most part. If they sell via their own regular advertising, then I am out nothing, and they happen to get a buyer by other means. I don’t go after them for the commission because this is not the kind of guy I am. We both know going in that if a buyer comes in via my work, I get a point when it sales. If it is not by me, I don’t care. I want the investor to do well so that when they do need some retail sales, or come across something that needs a retail sale, they will come to me.
I may be an exception, but there may be others like me in your area. You need to talk to agents and see who you can work with. Strike up what you want to do and what they can do for you. You never know unless you ask. Ask them if they would take a note, can offer discounts on any listings you give them, etc… You start talking to an agent, you should identify if it will be a workable environment for you.