Who says Realtors are NOT good for L/O leads? - Posted by Jim IL

Posted by Tyler on April 14, 1999 at 01:46:44:

I haven’t yet run across any sellers willing to pay ME (or a realtor in this case) to take their house off their hands. I imagine this guy is a rare case, but hey!..Keep 'em coming, eh?

Congrats, Jim!

Who says Realtors are NOT good for L/O leads? - Posted by Jim IL

Posted by Jim IL on April 14, 1999 at 24:41:50:

Hello all,
I just had to pass this one along.
I have a realtor that I work with constantly. She brings me leads for “flip” candidates, and other decent deals.

I read somewhere that RE agents were not a good source for L/O leads. Well, yesterday I learned differntly.

In the past I told this agent that IF she came accross any sellers that had little to no equity in a home and still wanted to sell, do not pass them up, pass them on. I had heard her talking about a seller that came to her to list, and she realized that there was not enough equity to sell and still pay her commission.

I told her that IF she referred me a L/O deal, once I got an option money from my tenant/buyer, I’d give her a referral fee of $100.00.

Not bad for a referral.

Well, yesterday she calls and tells me about a client that has listed his TH with her for 6 months and not sold. He was holding out for a high price.
He recently inherited some money and no longer needs the sale to complete his new home deal. He has money to put down. He just cannot afford two payments.
So, she asked me IF I’d be interested in doing a L/O with this guy?
She then told me she had agreed to change the listing agreement to allow him to pay her commission at the close of the OPTION!! (YAY!!, I love this agent)

So, today we discussed the L/O with the seller, and he is game.
We are negotiating what the “option money” from me will be.
He wants $1000 and I offered $100.
(honestly, I’d pay the $1000, but he’ll also go under that, so why not try?)
He already agreed for me to make his payment as the rent, and thats it.
The TH is FMV $75k, he owes $66k.
So, we will do a two year L/O with the guy for his “balance”, “his payment($500/month approx.)”, and maybe $500/ option money.

Then, we will sell it in a L/O to our Tenant/buyer, for $86k, $3000 option money, "750-$800/month rent, and whatever my buyer can afford per month “option money”.

So, we will make:
$250-$300/month cash flow
$2500 option money front end
$12,200.00 Back end. (probably more, since the “balance” will go down)

And my “seller” will pay the agent later. (from what, I don’t know, not my problem)

And, now that we “pulled this one off”, my agent says she will now pass me some more.

I love this GAME!

Jim IL

Re: Who says Realtors are NOT good for L/O leads? - Posted by SCook85

Posted by SCook85 on April 14, 1999 at 09:09:59:

I am in realtors offices so often and hear of the listings they don’t want to take because the seller wants to much for there home. There is a reason these sellers wan to much. It has crossed my mind numerous times to make something of these leads but I let them go. After all it’s not what I do best. I may start pursuing them from here on out.
Thanks for the information, it might be the next stage of my investing.