Re: Realtor Investors - Posted by rm
Posted by rm on August 09, 2003 at 10:20:22:
>Depending on their situation, you can let them know >that you could list the property at a higher price >and HOPE to get it sold and closed in time, OR they >could sell it to you/your company (I hope you have a >Corp. or LLC) for a discount and be rid of the debt >and know the property is off thier hands.
My approach is slightly different. When I meet with a seller, I decide whether they should sell to me or list their home with an agent.
If there’s not enough equity, or their motivation isn’t high enough, or the deal just doesn’t make sense, THEN I’ll refer them to an agent.
After having sold real estate for 9 years, and seeing how much better the profits are when I buy on my own behalf, I can’t imagine why you wouldn’t rather refer the listings than handle them yourself.
Among the things I no longer miss: dealing with agents, the complete lack of control you have in a co-op situation, “testing” a list price that isn’t going to fly, dealing with brokers who don’t understand marketing, RE office “closing” departments, the 19 extra forms I was forced to fill out, last-minute showing calls, calls from agents who forgot the keybox combination, agents who disappeared once an offer was accepted, clients who “changed their mind” after 80% of the work was done, rent-back agreements, oh yes- and dealing with agents…
Not that I dealt directly with most of that stuff, but just having to hear about it would make my blood boil for some reason.
You might try sending out the deals that don’t work for you as an investor. I wonder how many deals you could do for yourself, at more profit, in the time it takes to service just ONE client.