working with realtors - Posted by Tony Camero

Real Estate Investing Marina
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Posted by Tom NJ on February 15, 2006 at 13:08:53:

Charles,

I enjoyed your post. Very enlightening.

I like the way your contract reads. I have recently been using an agent for finding rehabs. I like the gentleman and we seem to get along very well. I had made it clear to him that I intended to use him exclusively for the acquisition and/or marketing of all my properties. He then came to me with an exclusive buyers agent agreement, which stated that he would be my representative for all deals, even FSBO’s, and that he would have the right to collect a commission on any property I bought. I didn’t like the way this read. I don’t mind him making a commission, however, my experience has been that when dealing with a FSBO, once the home owner knows there is an agent involved the negotiations grind to a halt…otherwise they would have listed the property in the first place. Needless to say, I didn’t sign his buyers agent agreement. I may, however, approach him with an agreement modeled after yours.

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working with realtors - Posted by Tony Camero

Posted by Tony Camero on February 15, 2006 at 06:32:34:

Hello ALL,
If you are working with a realtor to buy a property do you need to use conventional financing…or can you still do owner financing?

Thanks in advance

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Re: working with realtors - Posted by Pat

Posted by Pat on February 15, 2006 at 21:26:58:

You don’t say how you’re working with realtors. Do they represent you as the buyer or do they represent the seller? In either case, the answer to the financing question you raised is: the realtor will get paid. If representing the seller, the seller will pay him or her(do you think owner financing sounds reasonable in this scenario where the commission will come out of the owner’s pocket before he gets a payment from you?). If the agent represents you, the buyer, he or she will get part of the commission due the seller’s agent. Again, not conducive to owner financing though anything is possible. Here’s how I deal with realtors.

I use them as eyes and ears. I work with a select few who understand what I’m looking for. It is understood that I control the deal and the terms and conditions. I only use them wen buying if I use them at all. If a property I want is in the hands of a realtor, I will use my select agent to present the offer and act as a buffer between me and the selling agent. My basic approach is "present the offer; get out of my way; and oh yeah, collect your commission.

It’s YOUR deal; stay in control.

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Re: working with realtors - Posted by Charles Parrish

Posted by Charles Parrish on February 15, 2006 at 08:06:57:

Realtor/agents are working for you. You are the buyer, they are subordinate to you. You can make any offer you want; offers with a study periods in it, owner financing, right of possession, seller contribution or assignment before settlement. Remember the ?Golden Rule?, if you got the gold, you make the rules. Even if agents think you got the gold, you can still dictate the rules and the offer. If the agent you are working with does not cooperate with you, fire him (or her) and find an agent who will work with you as a fiduciary buyer broker.

If the agent you are working with represent the seller, than you will find they think they can make decisions for their client. Often, an owner will accept your offer if present to them properly.

I am a broker and investors and I have found one of the best ways to work with agents is by agreement and as a ?fiduciary buyer broker.?

Here is one of the agreements I have been using to work with real estate agents and Locators (also known as Bird-Dogs) to let them know what my position is and what I expect of them. You may also find it useful in your activities in finding real estate transactions; I use this along with a Non-Circumvent Agreement.

Your comments appreciated.

Fiduciary?s Consultant Agreement

THIS AGREEMENT made this ____day of _____ 2006 by and between Charles Parrish, agent of an LLC to be created, of 6721 Harford Road, Baltimore, Maryland 21234, hereinafter referred to as ?Client?,

and ___________________________________________hereinafter referred to as Consultant (Fiduciary).

NOW THEREFORE, in consideration of the following and of their mutual promises and agreements, the parties to this Agreement agree as follows:

WHEREAS Client is in the business of real estate investing and other real estate related activities. Client has acquired a reputation for fair dealings and enjoys the goodwill of the public. Consultant desires to associate with Client for the purpose of procuring real estate for Client and to advance each others financial position.

WHEREAS Consultant encounters during the course of business, persons involved in the purchase, sale, option, assignment, liquidation, for sale by owner, bank owned properties and mortgages, expired real estate and others who have interest in real estate. Consultant wishes to refer properties to Client for the furtherance of their business pursuits of Client and Consultant as individuals and not parties of a legal transfer. Consultant agrees to refer certain CONTACTS to Client for the purpose doing real estates transactions.

NOW THEREFORE, in consideration of the mutual promises and agreements it is agreed as follows:

  1. That this Agreement does not constitute a hiring by either party.
  2. Should Client/ purchase or contract to sell any property referred to Client by private treaty or public auction, upon settlement of same, Consultant will be entitled to and will be paid at time of settlement a percentage based on the acquisition price of the property up to ____%, or as agreed at time the referral is presented to Client. .
  3. All fees are calculated on a net basis to Client at time of settlement.
  4. This Agreement may be terminated by either party upon verbal or written notice.
  5. Consultant agrees to meet with or talk to Client at certain intervals for marketing advice or training sessions in order to advance their skills as a Consultant and to better represent Client.
  6. It is understood that Consultant and Client have entered into this agreement in order to advance their networking business and increase their income and that there has been a meeting of minds of all parties.
  7. Client agrees to submit a verbal or written activity report to the Consultant on every property referred.
    8 It is understood that Consultant is representing Client as a fiduciary representative and will conduct themselves ethically, and professionally at all times during real estate inquiries, solicitations, advertisements, publications or negotiations, and that Consultant will have the Client best interest during contact will owners of suitable properties for Client, and will be honest in all negotiation with s, sellers, lenders, agents and others, and will make full disclosures where necessary.
  8. TYPES OF PROPERTIES DESIRED: Client prefers real estate that is not listed; For Sale by Owners, Expired Listings, Self generated real estate referrals, pending foreclosures/tax sale certificates, bank owned properties, mortgage notes and deed of trusts (current or in default). Will consider non-conforming real estate, marinas, commercial, apartment houses, farms, land, lots, subdivisions and businesses with real estate.
  9. It is understood, that it is not the intention of the parties in this agreement to circumvent a commission, fee or legal obligation that is due any real estate broker, if you are a licensee working as a real estate agent, your agreement with your broker to split commission, fees or any equity in a legal agreement relating to this agreement is an integral part of this agreement and it is expected that as a Consultant that you will honor your moral and legal obligation to your broker to split fees.

_____________________________________________________(SEAL) Date ____________________
Consultant/Fiduciary

Address
______________________________________________________(SEAL) Date ________
Charles D. Parrish, Client
6721 Harford Road
Baltimore, MD.

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Re: working with realtors - Posted by Tony Camero

Posted by Tony Camero on February 16, 2006 at 01:03:34:

thanks pat excellent advice…and I did mean initially when buying property from a realtor who is representing the seller…although I do plan to use realtors…as eyes and ears…as you mentioned.

how did you find your selected agents…cold calling…write letter…etc?

I look forward to your response…thanks so much.Tony