By a show of hands, How many of you...... - Posted by Madd Flipper

Posted by hg-nyc on April 28, 2002 at 21:09:14:

our agreement is only as good as your(the buyers) word. An agents bringing suit against a buyer would be more trouble than it’s worth. Better just to cut them off from listing access.

And yes, the seller is paying the commission. But in reality once a MLS listing is given to the potential buyer there is nothing that holds them to the agent(the creative agent), especially if that listing is not a ‘house’ listing(meaning a listing owned by the creative agents brokerage). Tecnically they(the buyer) can view the property, speak with the seller, get the seller’s listing agent and then make an offer.

That said, I am sure the vast majority of buyers are honest and would abide by their gentlemen’s agreements.

I would certainly be open to working with cash buyers. Even the buyer flipping with ‘Note’ money.

In the New York City area, with the advent of the internet, getting listings out to investors has become sooooooooo easy! Dont’ have to go to the office anymore.


By a show of hands, How many of you… - Posted by Madd Flipper

Posted by Madd Flipper on April 27, 2002 at 16:32:57:

buy homes off the MLS to rehab. I’m finding it very hard to get the deals done. There is just to much probing into my personal info. Realtors need bank statements when you make all cash offers and no matter what I say they always want to hold my earnest money, I’ve even told them my lawyer has it in escrow. I don’t wanna quit but if it’s gonna be this hard to find 4 rehabs a year, I might as well start landlording.

Please help!!!
Madd Flipper

RobFL is right! - Posted by ken in sc

Posted by ken in sc on April 28, 2002 at 09:26:10:

Give the agent what he wants! But you can still be creative. Have a lender call them (as well as write a letter) with a glowing report of your ability to close. Give them a permanent $500 and tell them there is more where that comes from. For years, I used the same $20,000 in a money market (showed them the statement) that was supposed to be for my downpayment. Then I flipped or closed with all borrowed funds. Once you do a deal and the see their commission, they will come around and fight for you.


Re: By a show of hands, How many of you… - Posted by Mark-WV

Posted by Mark-WV on April 28, 2002 at 06:31:41:

I buy all the time through a agent who acts as a buyer broker, I do as Tim says have a $500 check on file with them for deposits. I have never gave a preq letter or bank statement on a all cash offer.

I have bought three this year and a total of 16 in the last 4 years with this agent.


Re: By a show of hands, How many of you… - Posted by Joe Eckburg

Posted by Joe Eckburg on April 27, 2002 at 18:54:55:

I have bought all of my rental homes off the MLS and most would be called “rehabs.” I give my realtor my criteria: zip code, max price, and search for the words “foreclosure,” “TLC,” “as is,” “handyman special,” “needs work.” His assistant faxes me the new listings the day they come out. Sometimes I’ve looked at them, made offers the same day and still been beaten out by someone faster! I keep a $500. check with them which serves as my earnest money should any offer be accepted. They have a copy of my “bank letter” verifying sufficient funds.
So far it works well.

Re: By a show of hands, How many of you… - Posted by Rob FL

Posted by Rob FL on April 27, 2002 at 18:50:48:

I buy them all the time from the MLS and I have several other investor friends who do the same.

I’m going to be blunt with you.

You are working too hard. It’s not as difficult as you are making it. You do however need to realize that bank REO’s and most Realtors are not as stupid as Ron Legrand and many on this newsgroup claim they are. Yes many are unsophisticated with creative offers, but at the same time most veteran agents want to screen out people who are unqualfied. They don’t want to deal with a person who has no money, no credit, no income, or just took a Legrand/Sheets seminar and doesn’t have a clue.

My suggestions:

  1. Hire a buyer’s agent to work for you. The listing agent is working for the seller. A GOOD buyer’s agent will help you get at least some of your offers accepted, assuming they aren’t all TOTALLY ridiculous for the current market.

  2. If you are dealing with bank-owned properties, many times the bank will require their agent or their title company to hold the escrow deposit. Generally this is non-negotiable; get used to it. If you don’t have the money for the deposit, then what I can say, this is a serious business and the competition will beat you more often than not. If the seller is not a bank, then let your buyer’s agent hold the deposit. Maybe even put up a permenant $500 or $1000 escrow with them at all times.

  3. I wouldn’t want to show a bank statement for all cash purposes either. Get pre-qualified with a lender. Have them type something up for you that says you are pre-qualified for a mortgage for $x amount. These a very easy to get. Now-a-days it’s pretty standard to expect a pre-qualification letter with any offer, all cash or financing contingency. These guys want to be dealing with people who can actually close, not people who can never close unless they find someone to flip it over to prior to closing.

Rob FL … investor / broker

Re: By a show of hands, How many of you… - Posted by Tim Fierro (Tacoma, WA)

Posted by Tim Fierro (Tacoma, WA) on April 27, 2002 at 18:42:42:

…by a show of hands…

I am having a hard time seeing those of you on the east coast, could those of you in the midwest please sit down and those on the east coast stand up?

Thank you. Ok then, that makes 143 that do.

Many thanks to the guy from Pennsylvania for taking off his hat. It was hard to see around you.

Re: By a show of hands, How many of you… - Posted by JJJ - FL

Posted by JJJ - FL on April 27, 2002 at 17:19:05:

Madd Flipper:

Definetly don’t quit. You need to find a better realtor to work with if its your agent asking you all the questions.

If its the listing agent, just include all that in your contract addendums…deposit to be held in escrow, etc. Also, it might help if you got a blanket pre-qualified letter from your hard money lender. Submitting that with your offers will carry a little more weight.

Personally, I’m a little tired of the “clueless realtor” bit. I know that there are decent ones out there, but I’ve decided to just go ahead and get the realtor license. The problem in my area is that all the realtors who have a clue about CRE are doing it themselves, so they don’t have any time to work with people like you and I!!

Re: By a show of hands, How many of you… - Posted by scott

Posted by scott on April 27, 2002 at 17:06:47:

Madd Flipper, Realtors in general will choose a conventional deal over a creative deal any day of the week. Contact owners directly who are not actively trying to sell…people who are generally motivated: divorce, estates, run-down homes, etc.

OK. I am an agent… - Posted by hg-nyc

Posted by hg-nyc on April 27, 2002 at 21:12:32:

when I hand you a list of MLS properties, how do I keep you from circumventing me?

Make me comfortable then I can open my self up to the creative pool of buyers!

Re: By a show of hands, How many of you… - Posted by Joanne (Fort Myers, FL)

Posted by Joanne (Fort Myers, FL) on April 27, 2002 at 19:06:29:

DITTO- Well said!

Answer. - Posted by Joe Eckburg

Posted by Joe Eckburg on April 28, 2002 at 11:26:38:

Why would I circumvent you when I (as the buyor) don’t pay the realtor commission? You offer me speed (same day listings) and convenience (lets look at the house today!). I only have to write one $500.00 earnest money check. Your assistant just changes the date on my bank letter. I’m not creative. I make all cash, no contingency offers. I’ve bought 11 houses in the past 9 months. You’ve made money off of each one.
Joe Eckburg