BiggerPockets

Aly, I do exactly this, however, I'm not an agent.

If you want, I'll spend some time with ya discussing exactly how to do it and make it the most beneficial for you

sure, send me a pm and we'll get together

Very good idea in James post - an agreement as to who is and is not to do what.

Aly L & motiv8td, I'm also working on the same thing and would like to hear input of how well you are doing with it and your experience for getting the realtors motivated to get some deals completed.

Most of the agents in our area haven't responded well. Their typical reaction is suspicion, and many are convinced for whatever reason that short sales + investors + agents = fraud.

We do have a few that are interested in actually selling their listings and want to learn more, but most are convinced the FBI is going to break down their door if they work with us.

I think the biggest thing is to understand the fact that your going to have objections. It's just part of the game. Every agent we reach out to doesn't want to work with us. I'd say 1/4 Realtors end up working with us.

Two things we have done have taken our business to the next level.

1. We had a broker friend that used to be a very large realtor before she started her own firm come on board. She then began calling every agent that she knew and talking to them about our business and what we do. Next thing you know another agent is talking to other agents in their office about what we do ETC and it's just growing..

Try finding a investor friendly realtor who understands what your doing and see the benefit. Don't be discouraged when you get shot down.

We put together a FAQ that we send out to Realtors who have a lot of questions. Pretty much answers every question or objection they may have.

I'll have to drop some more info later, but I've found personally the line that works ALMOST all the time when Realtors are hesitiant is.

" Bottom line is that we are CASH buyers who have a vested interest in the property and the transaction to be handled right. Only difference is we prefer to handle our transactions in house. We are confident in our own negotiations with the bank instead of a 3rd party. Again, we have a vested interest in making sure the lender comes back with a price that will ensure we are able to purchase the property."

Usually something along those lines lets us get past a few things. Also, we tell them we have references to other realtors in our area if they'd like to speak with them.

Another, when they hint around to it being fraud etc. We show them a article from the VAR legal counsel talking about exactly what it is we do and explaining that it isn't fraud. If they don't want to work with us after that then it would have been to much of a hassel to deal with them in the first place.

I can say the hardest part is getting a Realtor to allow them self to give up the control of the sale. They feel with you handling everything they aren't in control of it all.

They don't want you to have access to their sellers ETC. Upfront we say well "hey if you'd like us to send you the paperwork and you get it signed etc then that's fine with us" They ALWAYS come back later once they are tired of running paperwork and let us take it over LOL.

Biggest thing of ALL. Make sure you clearly explain to them that they will GET PAID and that they will see their commission on the CONTRACT. <--- This is usually what the hold up is because they think your trying to cut them out of the transaction.

Sorry for the ramble, but we were in your position about 8-10 months ago and i know it's frustrating. I want to see you get these deals!

Thanks everyone, this is real good information. I have a meeting with a realtor on Tuesday and going to use some of the stuff in here to make her feel comfortable to move for with me on a deal. I know once the first deal is knocked out, everything will be smooth sailing.

Chris would you be willing to share the FAQ you send to the realtors? I actually want the realtors doing all the paperwork with the owners, that's a whole lot of time saved for me if they just have a few extra docs signed when they get the contract and listing agreement signed. the only thing i really want control of is negotiation and making sure all offers come to me and not the owners.

One objection I had recently from a realtor was that she didn't think other realtors and buyers would want to wait 2 mos to see if I would be able to accept their offer, OR in the case that say we get an offer for a C buyer on day one(or very early) of marketing, then after two months of waiting the A-B falls through and C has to start the process all over with the bank and still have it not be certain that their offer will be accepted. I didn't have any rebuttal for that except, "well yeah they just have to wait it out..." - pretty much sucked

Good luck Adrian and you're right, once the first one is done more and more will find their way to you.

My wife and I run a decent SS business with currently around 57 direct contracts with the sellers. All the comments I have seen regarding this post have been right on. We all have to remember that in the eyes of an agent, we as investors, are a direct threat to them. That is the way they perceive us. That perception is not correct, but their commission is primarily the only thing they are concerned with. In your conversations with agents, be sure you emphasize the fact that they will actually make more commissions by not wasting their time mediating with the lenders and spending their time finding buyers for all the properties they bring you.

I always ask a new agent, "Do you want to look busy or make money?" Using us as your system to get these SS done more consistently, will in turn help you to turn more of them into profit.

When we buy a SS, we normally do the rehab also, then sell it for just under full market price. If the agent only sold it to the rehabber, he would have made a lesser commission, then when he sells it almost at full price.

For example, I buy it for $200k, put $15k in rehab, then sell it for $375k The agent would have made a 3-6% commission on the first purchase (say 6% max $12K) But when he works with us, he doesn't make any commission on our purchase, but when we sell it he makes (max 6% $22,500) If the agent was smart, like some that we work with, he would want to know how he could partner on the profit side and forget the commission. That's for another post.

Gotta love the open forum of communication on these subjects now. Hurray!!!

i totally see what you are saying, and i think the problem for some realtors arises when the end buyer's agent would be told that we are currently negotiating the SS and it may still take us 2 mos and even after that, they may still have to submit their offer to the lender and it could also be turned down. they think (and maybe rightly so) that other agents won't want to show it. I absolutely make sure the realtors and owners know up front that I will step out if it won't work for me.

Scot - It sounds like you aren't using a realtor on the A-B. If so how are you doing this? every deal I've submitted the lender wanted a listing agreement and wanted the place to be listed on the mls. I know some people have gotten around the issue before but it seems as though they are cracking down on not having the property listed. and I really like your business model of doing the rehab work to juice the profit up. added holding costs but i'm sure the added profit more than makes up for it.