Agent expectations - Posted by Blane (MI)

Posted by phil fernandez on July 10, 2001 at 20:40:50:

Hi Blane,

I’m excited that you are getting into some apartment rentals. Buy em right, manage em right and wait. Before you know it you have your retirement setup.

Sounds like this agent isn’t agressive. I’d get rid of her. If you are interested in the 6 duplexes and your agent doesn’t even return phone calls, I’d call the listing agent directly and explain your situation with your agent. No sense losing out on a deal because of a lazy unmotivated realtor.

What you will find when dealing with realtors on investment property is that they do not understand how they work. They don’t seem to realize that in order for the deal to work for the buyer that there has to be cashflow from the property. The realtor typically lists and trys to market income producing real estate the same way they would market a single family house that a consumer would buy to live in.

Seldom in the expenses of an income producing property will there be any allowance for a reserve for replacement. The realtor must either think that things never get old and need replacing or they think you have deep pockets and that replacement money can come out of your pocket. Never ever pencil in a deal without putting in an adequate reserve for replacement figure.

Another thing that you will hear from agents is that the rents are low and you can raise them once you own the property. My response to the agent is, " I buy on performance not on potential or speculation. " By performance I mean what the property is currently producing. If it were that easy to increase the rents, the seller would have already done this.

So you see agents to me just get in the way especially when you are looking to buy income producing real estate.

Agent expectations - Posted by Blane (MI)

Posted by Blane (MI) on July 10, 2001 at 20:18:33:

Hi all,

Having done MH’s the past year or so, I’ve decided to venture into other income properties. Since Ed and Terry encouraged us to think big, I’ve been looking at multi-units rather than just starting with duplexes. Began working with an agent with a commercial realtor right before the workshop. I’ve been acquainted with her for some time through my son’s hockey team. Because I’m new at this, I just want to know if I’m expecting too much, or if the process is taking longer than it should.

Now that a month has passed since the workshop, the agent and I have looked at exactly 2 properties. First one we decided to pass on due to repairs. Second property is a nice 12-unit (actually 6 duplexes) in good shape. Seller’s agent claims seller is anxious. I want to get all the info together I need to make a decision on an offer. Agent said she was waiting on seller’s agent for the stuff. But now I can’t even get my agent to return my calls.

Granted, I had to come to a total stop for a time 'cause my mother-in-law died. But now am ready to move, yet no agent. I understand I’m a nobody in the investment world right now, and I understand I’m not the only client. But shouldn’t things be moving faster than seeing 2 properties a month? I thought I could get to a point where I’d at least make that many offers in a month. She also stated when I inquired about other properties that we should just work on one at a time. Is this reasonable? Am I expecting too much? Should I consider working with more than one agent? Any thoughts/insights would be greatly appreciated.


Re: Agent expectations - Posted by phil fernandez

Posted by phil fernandez on July 11, 2001 at 16:51:57:

Hi Blane,

Who is the agent who says, " we should only work on one property at a time." That statement sounds like it comes from someone that gets confused easily when more than one thing is on her plate.

I would come back with, " Why do you suggest that we only work on one property at a time." Let her know that you are an experienced investor, and you are with your mobile home investing, and as an active dynamic investor you will need to have access to more properties.

Re: Agent expectations - Posted by dewCO

Posted by dewCO on July 11, 2001 at 14:38:37:

Leave a more pointed voice for the agent and find out what’s going on. You say you wanted to make 2 offers a month. How many do you actually want (or can) buy–per month? Maybe the agent figures you’re just a load and you’re just going to look for ever until someone makes you an unbelievable deal. Which is OK for you, but maybe not what the agent expects. Maybe she’s just going to work you in in her spare time. You need to be clear on what you want and can close on, and when and how much time she has to get you there, otherwise move on.

some agents won’t give you anything except their spare time, unless you establish a buyer agency relationship with them. Find out if that is the case here and then you need to decide if you want to do that. You can do it for a week or two at a time, if the agent agrees to that.

Re: Agent expectations - Posted by robert mi

Posted by robert mi on July 11, 2001 at 01:43:29:

good to see that your still going.

i have been working with no less then 7 agents. only two are creative agents. i got there names from other investors that i have gotten to know through re clubs.

thay seem to get more done and will go with most of my ideas. the rest are new agents thay send me new listing almost everyday to look at. maybe 1 out of 20 i look at. most of the work is done over the phone.

flips seem to be great right now. rentals around here seem to be alittle high in $$.

keep it going!!

robert mi