Posted by RRSmith on October 16, 1999 at 07:45:38:
What happened with me is I got a very experienced, very street smart, RE agent that had just switched compan. They need to prove themselves to the new company, and if you explain how you can become a major profit center (or even close 2 deals each month)you build rapport and trust.
newbie needs advise - Posted by WAYNENJ
Posted by WAYNENJ on October 15, 1999 at 12:35:19:
Hello everyone i’ve been following this site for a while now, I have not posted any questions yet because before I can, I always find the answer before I can ask it. But I do have one concern. I’m an ex-realtor/investor trying to get my first rehab deal on the books i’ve been calling around to various real estate offices and talking to agents about handyman properties. I know the areas and where to find the good properties but then there is one obstacle that annoys me. When I ask the listing agent if they can show me the property most all of them seem to blow me off as if the can care less about if the property sells. For the most part majority of the agents seem to try to talk or scare me away from the deal. There was one instance where I contacted a local realtor about a REO he had listed he told me i needed to get pre-qualifed and that i needed $5000 in earnest money, now i’m starting with minimal cash maybe a few hundred dollars but if I have to come up with that much earnest money it seems impossible right now. I was under the impression that a few hundred in deposit money was enough am I mistaken. Any feedback would be greatly appreciated…
From a Realtor - Posted by Carmen
Posted by Carmen on October 17, 1999 at 16:25:24:
Just a couple of points:
There are Realtors and realtor companies out there who specialize in investment properties. Find them (look in the paper under the “Foreclosure” or “Handyman” ads paid for by a realty company). They will inundate you with lists of properties available for sale. I don’t think this is unique in my area (Ft. Lauderdale, FL). I get lists faxed to me daily!
You don’t usually need to see the inside of a property to know what “general” shape it is in. See if it’s something you want before you drag a realtor out there with you. From the tax records, you can tell what the houses in the area have been selling for, and what you need to offer. AFTER the offer gets accepted is soon enough to go do your “inspection” - which you added to your contract as a condition of sale.
Keep looking for a realtor who will work with you. I am a realtor, so I can get the lock box codes if I need to, but my husband is the one who usually makes the calls. He does NOT portray himself as a realtor, but he DOES seem to be able to frequently “save the realtor some time” by getting them to give him the Lock Box codes instead of going out with him - especially on the vacant, rehab properties (As a realtor, I would never do this for a stranger, as I can be held liable, but he’s a schmoozer, and people like and trust him, and so they do it for him)
Be careful if you are thinking of doing the rehab yourself and you only have “a few hundred dollars”. This is experience speaking. It will most likely take longer, cost more, and be more difficult to sell quickly than you think. Although I “KNEW” this, it has taken 3 months of blood, sweat and tears for me to admit that “they” (Investors on this board, in particular) were right. I’m still going to do rehabs, but my first one was a very good, though expensive, real-life “seminar”, as Eric C is fond of saying.
Saludos, Carmen
Here’s what I do… (Long) - Posted by FrankPghPA
Posted by FrankPghPA on October 15, 1999 at 18:55:29:
Wayne… Most of the deals I do, are REO’s using a Realtor and it works out great.
In the process of helping some others to do these types of deals the way I do, I found they had the same problem your having. My advice is to have specific criteria written down before you contact them. i.e., my own are 3 or 4 bedroom single family houses in decent areas which are for sale by lenders. This means “Post-Foreclosures.” When you approach them, emphasize the benefits to them of doing business with you. I let them know that I DO NOT expect them to have to run around showing me a lot of houses and taking up their valuable time. I do an exterior inspection of the property without them [actually, I have somebody do this for me because I’m too lazy to run around looking at houses when it’s not necessary]. Then I estimate repairs, calculate what I’m willing to offer and tell my Realtor to submit my offer.
To make it easier for people to find a Realtor, I prepared a letter which you’ll find in the “Money Ideas” section… “Finding Agents Who Will Work With You.”
There have been a couple of revisions, but it’ll give you an idea of how to approach Realtors. It’s been used by some people as a fax, an e-mail, and in face-to-face situations and worked very well for them.
Good Hunting…
A little advice… - Posted by Dave I.
Posted by Dave I. on October 15, 1999 at 17:48:15:
Dealing with realtors has always annoyed me. All one has to do is study a little bit, take a test, and get a license. Realtors are just like everyone else. Some are good to deal with and some are horrible. I wish more home owners realized what they are doing to the potential sell of their property by listing with an agent. After listing, they have put a middle man in the way of selling their house. I have wasted so much time dealing with realtors. One bit of advice I can give is this: Make your offer no matter what they tell you. They are supposed to, by law, submit all written offers. As far as the earnest money goes, they always try and get you to give them more than is required. If they want $5,000 I would give them $100. If the REO is an extremely good buy I might give $1000 just so that the seller might be tempted to take my low offer. You can give them $1 if you want to. I usually give $100-$500 no matter what they say. If they don’t submit your offer, then call the bank or seller and tell them you are trying to make an offer but the realtor will not submit it. Call the realtor’s boss if you have to. Rock the boat a little… Whatever you do, don’t let an unmotivated realtor stand in the way of your success. Pretend there is a $20,000 check made out to you and in the realtor’s possession, but the realtor won’t give it to you because you are a so-called investor that he has been taught to stay away from. What would you do in this scenario? This is, in effect, what they are doing to you by refusing to help you. Consider them a minor hump in the road that you must get over. Also, you should do some other things to find property like driving neighborhoods, put an ad in the paper, or call banks and morgage companies yourself.
This game is so much easier sometimes if you can find the sellers before they list with a realtor. Go get em’ and don’t let anyone get in your way.
Good Luck! Dave I.
Opinion and a little advice - Posted by John (WA)
Posted by John (WA) on October 15, 1999 at 14:35:36:
Rehabs are a tough place to start. Even if you have the skills to do the work yourself, you will be spending your time using your hands instead of your head. If you contract out the work, educate and prepare yourself before you jump in. The risks are high and you can get creamed if you don’t buy right and properly assess all the costs involved.
Don’t get me wrong, people make money in rehabs everyday. Accommodating for acquisition, holding, repair and selling costs, risk and blunders and a profit for you, the true rehab should be obtained at no more than 60 cents on the dollar (and that is stretching it). The greater the work, the greater the margin you need. I’m uncomfortable when over 50 cents on the dollar.
The MLS is just one resource. Don’t solely rely on it.
There are a variety of flipping techniques. You might want to consider one of them first. Make a few bucks and gain some experience.
Re: newbie needs advise - Posted by Mark-NC
Posted by Mark-NC on October 15, 1999 at 13:29:48:
Wayne,
It may be how you present yourself to the Realtor.My experiance has been that most Realtors think that investors are a waste of time. In fact I had one new Realtor tell me that in her training school they were told to stay clear of investors because they will just waste your time. With all the real estate courses out there people read them and one of the first things they do is call the realtors and most of the time they buy nothing or they make rediculas offers that the Realtors don’t even want to bother with you . So more than likely this is the resistance you are getting. Maybe you could try a different aprouch untill you find A realtor who knows you are seriuos. Or find one that is new and hungry.
Mark