Posted by Charles Parrish on March 12, 2006 at 14:27:41:
Besides real estate agent friends and driving around looking for properties, if you have a general idea of how you really want to invest, what is the best way to get the attention of other real estate agents to help your search?
It is not the questions of how to get the attention of real estate agents; the question is how you train them to locate the property suitable for your consideration as an investor. You should not have a problem finding a real estate agent, there are thousands of them everywhere The unfortunate thing is, they are commission driven, not investment property aware, wholesale real estate knowledgeable, creative financing savvy or client investor friendly.
It is your responsibility to negotiate with sellers once an agent brings you a potentially profitable property. The care and maintenances of real estate agents is necessary if you want to create an auto pilot system of controlling real estate at a profit. Real estate agents are insecure by nature and rightfully so, they have been circumvented so often, they have become paranoid and over-protective of their listings and there clients.
If you want an agent to work for you on an auto-pilot system, you will need to make them feel comfortable and secure with you. The best way to do this is with a commission agreement or a Non-circumvent agreement.
Real estate agents are abused professionals. They get circumvented on their commission, there fees are negotiated down at settlement; buyers waste their time looking at properties only to purchase one from someone else. Sellers often go around them to avoid commission.
It is no wonder these folks are insecure.
The care and training of real estate agents by investors takes time and trust. As investors, we need to give agents a reason to do business with us. We want to train these agents to locate and make offers on non-listed properties. If trained properly, agents can be your best resource of wholesale real estate. Agents can become an “Auto Pilot” factor for your investor program.
I have two agreements I use to encourage agents to work with me, one is the Non-Circumvent agreement and the other is a Fiduciary?s Consultant Agreement. I developed these agreements over the years of trial & error (really, "Trial & Terror)
Here is a Non-Circumvent Agreement I use with real estate agents. It helps
to give the agent a sense of security and protection when working with you.
Here is an agreement for you and other readers for your use or critique.
FORM ? Permission is hereby granted to use this agreement at your own risk.
Non-Circumvention, Non-Disclosure and Confidentiality Agreement
THIS AGREEMENT entered into on this _______ day of ________, 2006 is for the Professional Association and arrangement of Non-Circumvention, Non-Disclosure and Confidentiality between
Charles D. Parrish, known as ?Buyer?, whose office is at 6721 Harford Road, Baltimore, Maryland 21234,
And _________________________________________________________ known as ?Consultant? agent.
whose principal place of business is at ______________________________
hereinafter called ?The Parties?.
The Parties agree to respect the integrity and tangible value of this agreement between them.
THIS AGREEMENT is a perpetuating guarantee for six (6) months from the date of execution and is to be applied to any and all transactions present and future, of the introducing party, including subsequent follow-up, repeat, extended, renegotiated, and new transactions regardless of the success of the project.
Because of THIS AGREEMENT, the Parties involved in this transaction may learn from one another, or from principals, the names and telephone numbers of investors, borrowers, lenders, agents, brokers, banks, lending corporations, individuals and/or trusts, or buyers and sellers hereinafter called contacts. The Parties with this acknowledge, accept and agree that the identities of the contacts will be recognized by the other Party as exclusive and valuable contacts of the introducing Party and will remain so for the duration of this agreement.
The Parties agree to keep confidential the names of any contacts introduced or revealed to the other party, and that their firm, company, associates, corporations, joint ventures, partnerships, divisions, subsidiaries, employees, agents, heirs, assigns, designees, or consultants will not contact, deal with, negotiate or participate in any transactions with any of the contacts without first entering a written agreement with the Party who provided such contact unless that Party gives prior written permission.
Such confidentiality will include any names, addresses, telephone, telex, facsimile numbers, and/or other pertinent information disclosed or revealed to either Party.
The Parties agree not to disclose, reveal or make use of any information during discussion or observation regarding methods, concepts, ideas, products/ services, or proposed new products or services, nor to do business with any of the revealed contacts without the written consent of the introducing party or parties.
The Parties agree that due to the many variables surrounding each Business/Financial Transaction that will occur because of this agreement, the commission to be paid and/or the fee structure between the Parties can vary. A separate fee/commission agreement will outline compensation for each Business/Financial Transaction. The fee or commission agreement must be drafted and acknowledged by signature before all Business/Financial Transactions.
In case of circumvention, the Parties agree and guarantee that they will pay a legal monetary penalty that is equal to the commission or fee the circumvented Party should have realized in such transactions, by the person(s) engaged in the circumvention for each occurrence. If either party commences legal proceedings to interpret or enforce the terms of THIS AGREEMENT, the prevailing Party will be entitled to recover court costs and reasonable attorney fees.
The Parties will construe THIS AGREEMENT in accordance with the laws of the Sate of where the property is located. If any provision of this agreement is found to be void by any court of competent jurisdiction, the remaining provisions will remain in force and effect.
THIS AGREEMENT contains the entire understanding between the Parties and any waiver, amendment or modification to THIS AGREEMENT will be subject to the above conditions and must be attached hereto.
Upon execution of THIS AGREEMENT by signature below, the Parties agree that any individual, firm, company, associates, corporations, joint ventures partnerships, divisions, subsidiaries, employees, agents, heirs, assigns, designees or consultants of which the assignee is an agent, officer, heir, successor, assign or designee is bound by the terms of THIS AGREEMENT.
A facsimile copy of this Non-Circumvention, Non-Disclosure and Confidentiality Agreement shall constitute a legal and binding instrument. By setting forth my hand below, I warrant that I have complete authority to enter into THIS AGREEEMENT.
FINDERS/CONSULTANT FEE: As negotiated per property offered at the time of the disclosure and detailed in a separate fee agreement.
Any type of real estate or business opportunity with real estate that would yield a potential short term profit: commercial, apartments, land, lots, sub-division, farms, land with potential re-zoning upgrade, water, lake, stream or pond fronts, and non-conforming properties.
6721 Harford Road
Baltimore, Maryland 21234