BiggerPockets

I'm meeting with a Realtor in the near future who is focused very much on foreclosures in a market I'm looking to break into. He's an amiable guy, as far as I can tell through emails, and I'd like to establish a relationship with him. I'm new at REI, and having never done this, the question is: what can I as a real estate investor bring to the table that would benefit him?

That should have been obvious to me. Alas, it wasn't.

Thanks Jon.

If you make him your go to guy and you uphold your end of the bargain, there should be no rhyme or reason why he wouldn't want to do the work for you. But, he'll gauge his work and output as he goes in the earlier stages. Once you've shown your diligence, there should be no problem.

You may come to find out this guy isn't what you had expected and that you need someone else to find the deals. Just make sure you put all your cards on the table face up and that you expect him to do the same. That way everyone knows whats on the table beforehand and you are both on the same page with one anothers intentions for each deal.

Remember the seller pays the commission, not the buyer. If you're dealing with REOs, the bank has sorted out what they're going to pay. If you're buying directly from the listing agent, you could try to get him to take just half the commission and reduce the price correspondingly. But if you're using a buyer's agent, they will split it half and half.

You may need to meet with several before you find one that will work well with you. Simply be upfront and let him know that you're trying to get the biggest bang for the buck.

Items that you'll need to bring to the table:

1. Know what you're looking for.... you need to know what type property, and margins that you're wanting to hit.

2. What's your overall plan? Flip or Hold. Will you need help managing?

3. Are you using cash money or financing

4. You will need to supply time to schedule viewings....use it wisely. Don't get hipnotized and look at stuff that does'nt somehow relate to your equation.

5. You will need some knowledge of the market area. Granted it may only be based on generalities to begin with such as noticeable growth, stability, or depreciation but take this basic info and ask him if he can provide data which supports your market assumptions.

If not, ask him if he has data to support some of his assumptions.

You will need to gain some basic knowledge about his MLS software so that you can easily talk his lingo when asking for reports. Find time to sit and watch him run the different market reports instead of just having them emailed to you. This will acquaint you with various filters available and also enable you to request customized reports i.e. properties located within yaddy, yaddy, ya...on the market more than 140 days, with agent comments pre-foreclosure,pre-fore,shortsale,short-sale,reduced price ect....

6. Assure him that you're a quick learning who will possibly bring him/her more future business.

There's somethings that you must insist from him/her as well.

1. Communication is vital - I hate chasing people down. I just go on to the next. And as a client I need to know that I'm important. If I have to always chase someone who's representing me, I tend to not feel important.

2. Integrity and honesty- anything less stinks to the high heavens. I'm a firm believer of anyone who works for me making a profit...a laborer is worth his hire and don't mussle the ox that treads the corn but, don't let me discover at the closing table that you're making some unbelievable bonus.

3. Competency....we both can't be on the beginner learning curve. One does not need to be a seasoned pro to be competent. Sadly though, starting out....It's hard to know what you don't know. Continue to ask questions and seek advice in BiggerPockets along with any other trustworthy real estate support group.

4. He needs experience in dealing with investors. Investors have a different buying mindset than regular homebuyers and many times need an investor thinking representative.

Homebuyers generally are looking for something nice to live in. On the other hand....to achieve your objective, you want an agent who's goal is to maximize your profits and/or generate income.


Note: I would avoid the fast talking salesperson....I hate feeling like a bag of groceries.
Before I go down that road....I would find someone new right out of real estate school and we learn together.

Didn't mean to ramble so much...
Good Luck!

6. Do not say no to often - if you say no to 10 properties or submit silly low bids you will lose his attention quickly.

7. If you are saying no all the time or submitting offers that are low but you think are "fair" then maybe he isn't the right one for you

8. Your not looking for a spouse here - your looking for a realtor - monogamy is not required - play the field.

Webb

I'm still trying to figure out why a Realtor should take a pay cut because you now have a relationship.

Like asking your best friend that works for you to take a pay cut because now your best friends.

Next time I go to my doctor who I have socialized with often I should ask for a fee cut because we have a relationship?

Are you getting what your paying for, what is the problem, Been an investor for a week and greed setting in already?

Hey Webb - if you and I are bidding against one another for the same house - we are both cash offers - and lets say your bid is $1,000 higher.

You are only going to pay him a $age of his normal fee - I am paying him his full fee - who do you think will end up with the deal?

There is a chance you might get his ear because you have done deals with him in the past - but I can promise you I will more then likely get the deal.

I don't care what the rules / laws / regulations are - people are people. I get calls from some of the realtors I work with and they tell me what the highest and best is I have to hit - or they tell me what the bank will accept.

Heck - I just locked up a property Friday with a brand new realtor - she told me the number to be at which was under what I was going to offer - but I was bidding against someone who didn't go direct - they used their own Realtor so there would be a commission split and she wanted the whole commission.

Should she have been doing that? That is a topic for another thread.

The fact that it goes on everyday is is a fact - and if you start to cut commissions telling him he is making it up in more deals - well - get back to me on that in a year and tell me how well it is working for you.

You may not have liked Brians tone but he was 100% spot on.

Look for deals that work and pay people who help you make your money - don't count their $$ and they won't count yours.

As a buyer:
1.Realtors are easy to find.A good realtor, like any good tradesman is hard to find. You may have to sort through some to get a good one.
2. Bring me what I ask for and go fight for what I want.
3. have a good team working with me..I.E.
house inspector, loan officer, Tilte company,contractor.
As a Realtor:
1. Tell me what you want, so I can find it. If you keep changing what you ask for I will move on.
2. Make sure you can get finacing!
3. Do what you say you will.

I would much rather work with investors than somebody looking for a home. Investors are about numbers. Buyers are about how the house feels.
My mentor on investor offers:
well, your client only has 72 more hours to be offended by that offer.
On commision cuts;
if you pay more for the house than the asking price I will cut my commision.
Kind of doesn't make sense to you, a commision cut to a realtor is the same way.