How to develop relationships with Sellers when you have a realtor

7 Replies

Hello all,

I am a newbie investor and have heard a lot about direct mail marketing and building relationships with sellers but how does one go about this when you have a real estate agent?

Thanks in advance for the insight! 

Anjali, Chicago

Having a realtor means you have him do the legwork for you. You hire a real estate agent because of the networking power he has already garnered and his experience. That way he might end up getting you a great deal on a house that fits the specifications you outlined. You could try looking for deals on your own in which case you would have to cut out the middle man and directly engage the sellers yourself. 

Good Luck!

Originally posted by @Account Closed :

Hello all,

I am a newbie investor and have heard a lot about direct mail marketing and building relationships with sellers but how does one go about this when you have a real estate agent?

There are 2 ways to work with real estate agents, USE THEM, or really make them a part of your team.  The USE method is why many agents won't work with investors.  The investors ask for a ton of information & effort from the agent with no return for the agent.  

Really making them part of your team means being respectful of their time and ensuring there's a return for their investment of time & the information they provide.  Using your example:  If you want to do a direct mail campaign an agent may help you with areas to target.  You then execute the campaign and receive some responses from sellers.  An agent that is part of your team may provide you with information, such as sales or rent comparables, contracts,....  whatever you need to close the deal.  An agent that is part of your team must be compensated.

I have a couple of out of town clients who run direct mail campaigns and they want access to my systems to analyze potential seller deals.  And we have an arrangment where I deal direct with the seller on their behalf.  There are some nuances to this but we work as a team.

@Crystal Smith thank you for your response! it's very insightful for my situation as I don't have the network, knowledge, or experience my agent has but I want to work with him and I see the value in him being compensated. May I ask, what type of systems do you have to analyze the deals that your clients take advantage of? Or what did you mean by that. Also, do you have a rough figure for the ratio of how many direct mails to how many seller responses to how many offers to how many closings? I'm also in Chicago. Thank you kindly!! 

Originally posted by Account Closed thank you for your response! it's very insightful for my situation as I don't have the network, knowledge, or experience my agent has but I want to work with him and I see the value in him being compensated. May I ask, what type of systems do you have to analyze the deals that your clients take advantage of? Or what did you mean by that. Also, do you have a rough figure for the ratio of how many direct mails to how many seller responses to how many offers to how many closings? I'm also in Chicago. Thank you kindly!! 

I'll send you a PM with the answer to the 1st part of your question on the type of systems we use in addition to the MLS. Regarding the 2nd part of your question on ratios, we expect a 2% response rate to direct mail. Of that 10-25% will eventually convert. I'll share more in the PM.