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How do you address disclosure in your (non-brokerage) Yellow Letters ?

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Max Williams

Richmond, Virginia

Feb 04 '13, 04:09 PM


Hello BP Real Estate Pros,

I am considering a Yellow Letter campaign (for personal fix & flip investing, not brokerage) but don't want to kill the effectiveness of the "guy next door" feel with the required disclosure of my licensed status. How have you addressed this (your letter verbage) if you have ever used Yellow Letters for personal investing? Did you find your approach effective ?

Some sellers may feel more comfortable working with a licensed pro since it reduces the potential in their mind of someone being a "fly by night" scammer. I imagine disclosure could be used to stress that "I know what I am doing and have a license to protect" in the letter.

Your thoughts?

Thanks
MAX



Chris Calabrese

Rehabber from Mt. Pleasant, South Carolina

Feb 04 '13, 06:39 PM


To be honest, we haven't done the yellow letter yet, but my partner and I are both realtors and are planning to do a campaign very soon. I never thought that it would have any effect. In fact, I expect that it will add some legitimacy to our offers. I think that if a seller was reluctant to to a deal with a professional it would be because they were trying to pull something over on me.



Antonio Lombardo

Developer from Birmingham, Michigan

Feb 04 '13, 07:36 PM


"I am a licensed realtor, but I don't want to list your home. My wife and I would like to purchase a home just like yours to add to our portfolio..."

I just started my campaign though. I'll stay in touch to let you know how it works out.

Might be a good idea to share templates and brainstorm. I've been working with Greg Pinneo and recommend his tutorials.



Wayne Brooks

West Palm Beach, Florida

Feb 18 '13, 08:49 AM


Not sure about VA, but here, disclosure doesn't have to occur at first contact, but "before entering negotiation".



Michael Quarles Donor

Real Estate Investor from Bakersfield, California

Feb 18 '13, 09:01 AM


My Board challenged me on whether or not it was a requirement to disclose on first contact direct mail.

Their final ruling, after a tribunal hearing, was as long as the mail piece was not soliciting for compensation or expectation of agency relationship no disclosure is required on first contact direct mail.



Medium_new_logo_bMichael Quarles, Yellow Letters
E-Mail: [email protected]
Telephone: (661)864-7860
Website: http://www.BuySellFixFLip.com
Listen to My Podcasts at www.BuySellFixFlip.com & Enter to Win 36000 Pieces of Mail Free!


Frank Geneski

Ajax

Feb 18 '13, 09:22 AM


I actually don't mind disclosing because it could be a win-win situation. If the person doesn't need to sell at a discount it could lead to listing.

Any ideas on what kind of content would be most efficient?



Bill Gulley

Real Estate Investor from Springfield, Missouri

Feb 18 '13, 09:53 AM


I can see where the Board in Michael's area went there, but that may not be the same ruling everywhere.

I could clearly come down on the other side, as to why are you sending such mailings if it is not in the expectation of compensation in real estate.

The other issue is that disclosure of your agent staus is required even if you have no agency relationship, as in selling your own property that is not listed.

That goes for all signs, letters, any communications with the public, like spam.

I'd rather be safe and not have to fight city hall, why not just disclose at the bottom.....better yet, why not work in your expertise and forget trying to be seen as the "just another investor next door" type?



J Scott Moderator Donor

Real Estate Investor from Ellicott City, Maryland

Feb 18 '13, 12:23 PM
1 vote


I've mentioned here on BP that this is the only downside I've seen to having my license. That said, I don't think it's been a huge issue, and it may even be working in our favor. While we don't do the short "I want to buy your house...call me!" yellow letters anymore, the longer "I'm a real estate agent but don't want to list your house...I want to buy it!" letters seem to do just as well.

Spin it into a positive...the fact that you're licensed gives you credibility in the eyes of many unsophisticated homeowners...



Medium_lishproplogoJ Scott, Lish Properties, LLC
E-Mail: [email protected]
Website: http://www.123flip.com
CHECK OUT MY BIGGERPOCKETS BOOKS: http://www.biggerpockets.com/flippingbook


Bill Gulley

Real Estate Investor from Springfield, Missouri

Feb 18 '13, 12:48 PM


That's what I'm say'n @J Scott,

As a real estate professional I will show you what is in the market and what comparable homes like yours are selling for. Since my profits are acquired over time I can pay top dollar today for your property. Unlike investors who may be calling you with all kinds of low offers designed to thier situation, as a professional Realtor I can ensure that you'll have a quick and easy transaction that fits your schedule.

Now, I'm no advertising type or hype master, but you get the idea.

Any seller who gets an offer from anyone not intending to live there already knows they are buying to profit.....so what? The question becomes not am I getting screwed, but by how badly, you want to deal with someone with iffy schemes and programs or to someone who shows them and can prove what the market is, pay a fair price and can follow through in a timely, professional manner?



Michael Quarles Donor

Real Estate Investor from Bakersfield, California

Feb 18 '13, 01:57 PM


The only reason I don't disclose that I'm a California Broker is that I am not for hire and I don't enter agency as a broker ever.

I do disclose on my agreement to purchase as I think it's an ethical issue not doing so although I'm still not required to.

And without a doubt the non agent letter out performs.

I tell all customers to disclose if they have the intent to push a listing if they can't buy. Not doing so seems creepy and wrong.



Medium_new_logo_bMichael Quarles, Yellow Letters
E-Mail: [email protected]
Telephone: (661)864-7860
Website: http://www.BuySellFixFLip.com
Listen to My Podcasts at www.BuySellFixFlip.com & Enter to Win 36000 Pieces of Mail Free!


Bill Gulley

Real Estate Investor from Springfield, Missouri

Feb 18 '13, 02:03 PM


That's kinda strange, if you don't hang your license with another broker, as a broker/agent, if you hold it yourself, an active broker's license, seems everything you do is through you, not sure you can divorce yourself dealing for yourself....even though you don't turn in the deals.....but whatever, you are in Cali....LOL :)



Max Williams

Richmond, Virginia

Feb 18 '13, 02:14 PM


Thanks guys for the good feedback on this topic. @Frank G. My first small campaign of 250 Yellow Letters will hit mailboxes tomorrow and we will see what type of response it brings. I like many of the posters, think that it could work both ways. Since my leads are all 55 years or better, I will stress to them that I am a licensed professional in the business and don't want to take advantage of anyone and am not running a scam. I read another thread where the Sheriff investigated a Yellow Letter complaint. I guess it was a slow crime day.



Michael Quarles Donor

Real Estate Investor from Bakersfield, California

Feb 18 '13, 02:40 PM


Bill in California it's impossible to have agency with yourself. And I always hire a broker to sell.



Medium_new_logo_bMichael Quarles, Yellow Letters
E-Mail: [email protected]
Telephone: (661)864-7860
Website: http://www.BuySellFixFLip.com
Listen to My Podcasts at www.BuySellFixFlip.com & Enter to Win 36000 Pieces of Mail Free!


Michelle Kadushin

Real Estate Agent from New York City, New York

May 14 '13, 09:12 PM


Originally posted by Michael Quarles:
The only reason I don't disclose that I'm a California Broker is that I am not for hire and I don't enter agency as a broker ever.

I do disclose on my agreement to purchase as I think it's an ethical issue not doing so although I'm still not required to.

And without a doubt the non agent letter out performs.

I tell all customers to disclose if they have the intent to push a listing if they can't buy. Not doing so seems creepy and wrong.

Michael-- I am currently using your yellow letter campaign. I am an lic.salesperson in nyc. I didn't have a virtual address for the return label and used my brokerage office. Within the letter I was instructed to use ( I thought I should disclose) a p.s. with my lic #. Well today an angry seller physically came into the office to instruct me to take them off of my mailing list. Since they showed my broker the "letter" my broker instructed me that I was breaking DOS rules and company rules since the brokerage info was NOT within the body of the letter AND wanted to know "how " I am buying property "all cash" etc etc. What the hell did I go wrong? Should I have not put my lic# and disclosed? should have NOT listed the return address of my broker down, since I would not be "listing" deals???
Any direction since you are an investor and a brokerage. I now have an LLC and virtual office address for the "investor side" of my RE business and I am an active salesperson. I am trying to be an wholesaler. I have built up my buyer list quickly with no headaches presenting myself w/ my LLC. The sellers have called me a "disgrace" since they now I have a lic. and has my office info. One person googled me and sent me an email via my salesperson email. Any direction you can point me (I know you are busy) will help. Out of all the million post on this topic you are the only one that made sense to me. HELP.
Many Thanks --Give Norma "hello' from me ( she is awesome)



Michelle Kadushin

Real Estate Agent from New York City, New York

May 14 '13, 09:13 PM


Michael-- I am currently using your yellow letter campaign. I am an lic.salesperson in nyc. I didn't have a virtual address for the return label and used my brokerage office. Within the letter I was instructed to use ( I thought I should disclose) a p.s. with my lic #. Well today an angry seller physically came into the office to instruct me to take them off of my mailing list. Since they showed my broker the "letter" my broker instructed me that I was breaking DOS rules and company rules since the brokerage info was NOT within the body of the letter AND wanted to know "how " I am buying property "all cash" etc etc. What the hell did I go wrong? Should I have not put my lic# and disclosed? should have NOT listed the return address of my broker down, since I would not be "listing" deals???
Any direction since you are an investor and a brokerage. I now have an LLC and virtual office address for the "investor side" of my RE business and I am an active salesperson. I am trying to be an wholesaler. I have built up my buyer list quickly with no headaches presenting myself w/ my LLC. The sellers have called me a "disgrace" since they now I have a lic. and has my office info. One person googled me and sent me an email via my salesperson email. Any direction you can point me (I know you are busy) will help. Out of all the million post on this topic you are the only one that made sense to me. HELP.
Many Thanks --Give Norma "hello' from me ( she is awesome)



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