Re: Using realtors - Posted by Ron (MD)
Posted by Ron (MD) on January 12, 2001 at 20:48:12:
I think it depends on what you want to do. If you are looking for seller financed deals, lease options, etc., realtors are probably a lousy way to go.
I do rehabs – about one or two per month. Almost every fixer-upper I buy is multiple listed through a realtor. (Usually, these are bank owned foreclosure properties.) Not every one is a great deal, but I can pretty consistently buy one or two per month cheaply enough that I can net about $20k per deal for my pre-tax profit and financing cost. You can judge for yourself if that is a profitable way to invest in real estate.
As for the specifics of dealing with realtors, yes, it is important to establish relationships with one or two who will work with you. It will be difficult for you to find a good realtor willing to work with an investor, even if you are a cash buyer. We often can give them volume, but the price/commission per deal is usually low.