Posted by Suzanne on February 05, 2002 at 12:32:47:
I am new to real estate investing, and have studied some of Ron LeGrand’s stuff. Right now Ron would call me an information gatherer. In the begnning you have to be to learn how to do your first deal. When I have enough knowledge, I am not going to sit on the fence.
I know Ron says to only deal with realtors on your junker houses. This is mainly because when you get into creative financing, most realtors will not touch it with a ten foot pole.
I am assuming that you have talked with this realtor and this realtor knows you are an investor. That this realtor is willing to work with investors. What I don’t know does the realtor know you are out to do creative financing.
From what I read on this forum is that the realtor’s main concern is their commission. I have read where other investors do creative deals with the realtors, but they pay the realtor’s commission up front even if the deal does not officially close until a year or two later such as in a L/O.
The other advice I have read is no matter what always be nice to the realtor even if they start getting mad or get you mad. Ask them questions even if you already know the answer. This makes them feel good, makes them think that they know more than you, and boosts their ego. At the same time, don’t go overboard and make them think that you are some idiot that has no clue as to what you are doing.
Having two other successful sub2 deals under your belt will help some. Be perpared for the realtor to ask where the money is comming from. Don’t get angry about this question, because they are doing their job by protecting their clients interest and their own interests. When they ask that question just assume that they delt with other investors who have not lived up to their end of the bargain, and the realtor is being more cautious because of that.
While you talk with the realtor, try to get a feel of what type of deals the realtor is or is not willing to work with. If they are not willing to do a particular type of deal, and you may try to find out why if the realtor seems not to be getting annoyed. This is easier said than done.
If you do get a contract signed with a realtor, be prepared to follow through with that contract even if you can not find a buyer right away. This will greatly improve your relationship with the realtor. As you do more and more successful deals with that realtor, that realtor may be more wiling to work with you on more creative deals later on.
Also from what I have read, I seriously doubt that a realtor will do a sub2 deal with a due on sale clause. Someone else will have to tell you how willing a realtor would be to work with a wraparound mortgage. I believe the more traditional the deal is, the more willing the realtor will be to work with you.