Real Estate Agents?

35 Replies

I am just wondering how many investors have problems with real estate agents showing low cost real estate?  I buy properties for investment, or to flip, many are properties that are in foreclosure. I have the money to buy the properties in cash, however, I normally offer less than the listing price of the properties.  (I have to make the numbers work). It is very difficult for me to find an agent to show me these properties at times.  No matter if it is the listing agent or another agent.  My normal response is that "I am busy today, maybe I could show it to you tomorrow or one day next week".  I am always told to drive by it and look at it and let them know if I would care to look at it, I do this before I ever contact them. I feel like they expect me to make an offer on a property without looking at it first.  Some real estate companies even want to charge a fee to even put in a contract on the property.   I have just about had it with them.  Even when I flip a property, they just take their time in selling, even if the property is a good value, in which all of mine are, and are much better than code requires.  I am not a slum lord, and never have had a problem with a real estate agent not wanting to rent them for their fee.  I am so tired of hearing agents bragging that they sold 12 properties in the last month or them telling me about their million dollar listing they just obtained.  I think I am going to start contacting the owner of the property, and ask them to find someone that will show me the property.

@Edward Briley,

The best way to get a real estate agent to take you serious show them your bank statement that you have funds to close.


Joe Gore

Originally posted by @Joe Gore:

@Edward Briley,

The best way to get a real estate agent to take you serious show them your bank statement that you have funds to close.


Joe Gore

 Done that, and do that, has not made a difference. 

Or be your own agent. 

To solve that problem for me I bought a small agency. 

Realize, if by low costs you mean $30-40k properties, the net commission to the agent on a $30k property will end up at about $600 or less, before considering gas, realtor fees, normal overhead, etc.  If you want me to show 20 houses, and make offers, the work after contract acceptance, etc., I'd have a hard time justifying the time verses the income in that scenario.  More so, if like some, the target offers are so low to not even expect that ratio.

@Edward Briley  

For the reasons stated by @Wayne Brooks  you have to understand you offer a very low dollar per hour to the agent.

You need to do one of the following.

1. Find a very hungry agent who needs to build a book of business.

2. Establish yourself with the same agent who knows you'll always come back bringing commission after commission

3. Get a RE license.

Medium holton wise property group logo jpegJames Wise, The Holton Wise Property Group | [email protected] | 216‑661‑6633 | http://www.HoltonWisePropertyGroup.com | Podcast Guest on Show #127

Or be your own agent.

To solve that problem for me I bought a small agency. 

Hey Sydney, I am not to that point financially, yet.   I guess that I am not the only one in the world that has to face this problem.   Looks to me that someone would start a business to charge agents a fee to show properties for them, in which I am thinking on checking into doing.  

I sent you an email!!!

Originally posted by @Wayne Brooks:

Realize, if by low costs you mean $30-40k properties, the net commission to the agent on a $30k property will end up at about $600 or less, before considering gas, realtor fees, normal overhead, etc.  If you want me to show 20 houses, and make offers, the work after contract acceptance, etc., I'd have a hard time justifying the time verses the income in that scenario.  More so, if like some, the target offers are so low to not even expect that ratio.

The problem with "charging a buyer to show them listings" is most investors would just say no.  Maybe you've found your own answer...offer to pay the agent $XX/hour for their time, up front, in addition to the commission on low dollar properties, so they know you're serious.

Originally posted by @Wayne Brooks:

Realize, if by low costs you mean $30-40k properties, the net commission to the agent on a $30k property will end up at about $600 or less, before considering gas, realtor fees, normal overhead, etc.  If you want me to show 20 houses, and make offers, the work after contract acceptance, etc., I'd have a hard time justifying the time verses the income in that scenario.  More so, if like some, the target offers are so low to not even expect that ratio.

First of all I make an offer on 3 out of every five properties I am shown, if the Realtor has the time to show me five at a time, which takes about 2 hours. Second is that I am trying to use the same company to buy houses, however, now they want to charge me for making an offer on a home, or a fee at closing ($195 for paperwork processing). Even though I have done over $400,000 in business with them within the last 5 years, (for 3 homes) and have referred over 2 million of business to them in the same time frame. I am on the 3rd agent with them, and I even ask them to give me a new agent, matter of fact the 2nd agent they gave to me, they took her commission for the purchase of the home. However, they did not take it for the selling of the home, but it took about a year for them to sell. They know I have the cash to purchase the properties, but I guess they just don't care. I did put in 2 contracts with them last week, one was rejected, in which I was sure it would have been, and I am waiting to hear on the other one. The listing agent asked that I not submit another offer on a VA repo on the rejected offer, unless it was for the full listing price. Needless to say we could not tour the entire home because of human excrement in the middle of the living room floor that had been sitting there for a while. The home was built in 2004.

making offers that you know will not be accepted is not a good way to make friends with agents. Agents don't care how many offers you make, but how many are accepted.  If an agent sees you constantly changing agents and trying new people they will not have any loyalty to you, because they can see you switching agents again as soon as you get annoyed at anything. 

Agents usually work independently in an office, it doesn't matter if you spend $400,000 at one brokerage to the agents.  The broker may be happy, but the agents are going to see an investor bouncing around and may think they will put hours and hours of work in for nothing. 

What's wrong with a $195 fee at closing on low dollar homes?

Mark Ferguson, http://Investfourmore.com | [email protected] | http://investfourmore.com | Podcast Guest on Show #68

Maybe you can look at it this way, and Wayne was trying to explain it. You may not want to pay $100k for a property that you can flip and sell for $75k.  Agents have expenses too when they are showing property and preparing documentation among other things. If I understood you correctly on your $400k business in 5 years, that comes to about $80k a year in purchases which translates to about $1,600 in commission a year for that agent. An average agent makes about $60k a year. If and agent wants to achieve that $60k income, they will have to sell almost 38 homes a year at $80k.  Maybe the best solution for you is No. 3 as suggested by James Wise. I dont know what the numbers are in Virginia but In Ga. Real Estate School is about $300-400, test is $270 and there are brokers with no office fees and 95% split. When you look at a house and say "the numbers don't work" the agent is doing the same thing. Hopefully this helps.

@Edward Briley  

It takes a little time to find the right agent to work with. I went through a couple before I found one that would work. I tell them up front that I am an investor an will buy every property that makes sense. i explain what I want to buy and we go from there. The first few were just lazy, like some employees in this country. When you do find one, create a relationship and treat them right. If you score a smoking deal from them, do something nice for the agent. I also tell them I will use them over and over. I don't float from re office to Re office She has the same MLS as the others do. Last year for example, we bought 7 homes form her. Yes, they are not the highest commission homes, but when you perform they see that and they love the repeat business. I Hope this helps ya!

Happy Investing!

I notice there is a lot of REO's in southern California you can buy without a realtor.


My 2cents,


Joe Gore

Find a new agent. I am new and love to work with an investor....I know the commission isn't that great, but I want to invest too, so we have something in common...I like to fix houses up and appreciate the finished product. Plus I would hope a investor would use me to resell the house when the flip is completed...or you could just get your license

Attention all real estate agents that are replying.  First of all I have used the same broker, so far, and I don't feel I am getting the satisfaction I expect.  Second, believe this or not that investors are your bread and butter, and give most of you repeat business.  Third is that when I buy a low priced property I flip it, and put it up for sell for well over $100,000.  Fourth when I keep the property, I pay the agent to rent it for me, in which they get paid 50% of the first months rent.  Fifth, that when I make an offer on a property, the agent knows that I will accept a counter.  Now when you guy's tell someone that you will not accept a counter from a Government owned property, that either you want to buy it your self, or you just don't care.   Been around the block a few times here.  By defending yourselves here, show that maybe you should be looking for a new career path.  I am sorry if you cannot show properties to investors, I would not use you.  Maybe one investor will eventually buy a million dollar or two property from you in the future, especially after you see they have the money and the credit to do so.  I guess you would rather deal with people that have less than 5% to put down on a property.  You could sell a lot more sub $50,000 dollar property if you wanted to work and make more money.   Did you read this post?  Did you see how many investors got their own license or bought their own agencies, for the simple reason, they had the same problem I am having.   

Originally posted by @Matt Granger:

Find a new agent. I am new and love to work with an investor....I know the commission isn't that great, but I want to invest too, so we have something in common...I like to fix houses up and appreciate the finished product. Plus I would hope a investor would use me to resell the house when the flip is completed...or you could just get your license

 Matt if I was in South Carolina I would use you in a second. 

@Edward Briley   You need to find an investor-friendly agent.

I have been actively involved in real estate since 2002. First as an investor, and later as a broker. I am more than happy to work with investors on low-priced property because I know that they will always come back to me. They give me their specs (what they are looking for, how much they are willing to pay and their desired ROI), and I actively search for them all day long, either through the MLS, wholesalers or properties that are off-market.

As an investor-agent, there are many times people bring me properties before they even hit the MLS. Traditional agents do not have access to these properties. Why? Because investments are not their focus, it is not even a part of their frame of mind.

I would post on BP asking for investor-friendly agent recommendations in your area. Best of luck to you!

206‑849‑5730

 @Tiffany Plovie
I would be willing to bet that you do much better than most agents.   At present with this agent, I hope that she will follow through even though she does not care to show properties to investors on Saturdays.   You are a true real estate agent, and I am sure you have a loyal following.  I will find the correct agent eventually. 

I feel the some frustration in this post. 1 issue here is labeling Realtor's all in the same boat. A Realtor is an individual 1099 contractor. They are all individuals with different mindsets, different values, and different skills. This can be true of any group of people. There are all different types just because you use the same brokerage does not mean the agents all work the same way. I am a newer agent and love working with investors, its even better if they do repeat business. It sounds like you have not yet found your guy that aligns with your values. My goal when working with a new client is to create a relationship that goes beyond just closing 1 deal. I would suggest you meet with more Realtors until you find someone who clicks with you. Also it never hurts to put yourself in their shoes, many times the first phone call is simply to qualify you and see if you are serious. Can you imagine how many "investor" phone calls come into an office after some guru seminar comes into town.  In any profession there will be people who love to work hard and others that don't. You could say the same thing about Lawyers, Doctors, Flippers, ect.....

Find your guy or be your own guy don't let one 2, or 3 individuals determine how you feel about that profession.

$195 plus there commission, get a hungry realtor and stop recommending these tight areses! Just a thought.

Tim Hall, Swell real estate investments | 8504087512 | http://www.webuyhousestallahasseefl.com

go to your local rei meetings and find a investor realtor. most investors understand what your trying to do.

mike Gallagher

equity real estate

 Personally I like working with investors gives me a chance to learn the ins and outs of their side of the business. Money is important as an agent but hooking up with the right investor and giving them great service can generate more money in the long run just from the relationship building and hopefully the referrals they give you. Wish you were in Michigan !

Originally posted by @Edward Briley:

Attention all real estate agents that are replying.  First of all I have used the same broker, so far, and I don't feel I am getting the satisfaction I expect.  Second, believe this or not that investors are your bread and butter, and give most of you repeat business.  Third is that when I buy a low priced property I flip it, and put it up for sell for well over $100,000.  Fourth when I keep the property, I pay the agent to rent it for me, in which they get paid 50% of the first months rent.  Fifth, that when I make an offer on a property, the agent knows that I will accept a counter.  Now when you guy's tell someone that you will not accept a counter from a Government owned property, that either you want to buy it your self, or you just don't care.   Been around the block a few times here.  By defending yourselves here, show that maybe you should be looking for a new career path.  I am sorry if you cannot show properties to investors, I would not use you.  Maybe one investor will eventually buy a million dollar or two property from you in the future, especially after you see they have the money and the credit to do so.  I guess you would rather deal with people that have less than 5% to put down on a property.  You could sell a lot more sub $50,000 dollar property if you wanted to work and make more money.   Did you read this post?  Did you see how many investors got their own license or bought their own agencies, for the simple reason, they had the same problem I am having.   

This is all I can picture in my head.

You need to really look at what you have to offer the agent. If what you have to offer the agents really is as great as you believe it is you would not be in the situation you are in.

Also a full months rent is pretty standard leasing fee. Not 50%

ex. Rent is $700. You pay $350 then agent splits with broker. The agent gets around $210. 

That is a pretty small amount of money. Not something that many people would be fighting each other for.  

Updated over 3 years ago

If you were to look into some of the agents who have offered advice on this thread (who you believe should look for a new career path) you will see that there is a lot of experience working with investments & investors.

Medium holton wise property group logo jpegJames Wise, The Holton Wise Property Group | [email protected] | 216‑661‑6633 | http://www.HoltonWisePropertyGroup.com | Podcast Guest on Show #127