I'm wondering where and how can I have more success on contacting Real Estate Agents, primarily in the Haverhill/ Boston area of Massachusetts, that are investor friendly, are familiar with subject to, and creative investing in general. I went online and made a few calls to some popular and unpopular agents and got some pretty negative results. They had told me that what I was learning did not exist and that I was a dreamer. I was discouraged for a brief moment but quickly I realized they had just been misinformed. Anyways, does anyone know of anyone in the area, or what steps I can take to find these people?
Finding an agent off the street isn't going to be easy to do if you want to find one that understand working with investors especially one that is looking to be creative.
For the most part you MIGHT be able to find one that way to buy mediocre rentals off the MLS with large down payments and conventional financing, but past that it is more of a needle in a haystack situation.
You will have much better luck going to some of the local meetings and talking to agents there. To be honest most of them still won't really be that helpful but they are at least looking to work with investors so you have a better shot at finding someone and they should at least be open to learning and digging into some other things.
I will say that while you want to keep all avenues open to finding deals, if you are looking mainly to try Sub2 and other creative financing options going through real estate agents is probably not going to get you very far. Even if you find a creative agent the chances the one representing the seller will be as well and will advise their client to consider that kind of deal is pretty unlikely.
Your best bet will be to market directly to sellers. An agent will probably be most useful to get you things like expired listings to market to since these people FAILED at selling their place on the MLS and now might be open to selling in a different way. In this case you will likely have to compensate the agent yourself as one of the biggest selling points to creative financing is saving all those commission costs.
What are you looking for? Are you being realistic? What were your expectations?
I use one of the top agents in my area. She has assisted my family with buying 6 houses in the past 12 months. Without her abilities we would not be where we are today. Se has been a very integral part in helping me locate deals and properties that are undervalue and perfect! Although she find them and I evaluate them. we found her through another friend.
That being said she works with very few investors. Not because she is unwilling but because their expectations are rediculous. I have her name to a fellow investor from BP. He called her asking her to show her 90k properties all weekend but he would not be using her to write a contract.
Good agents aren't going to ruin their reputation (very important in this business) to through hundreds of low ball offers or spend thousands of hours for a 60k property . They earn through commission. I
That's not saying you can't get good deals. You just need to be realistic.
That's just my two sense! I truly believe a good realtor is a very important part of the team! I also feel that more often than not it's the investors unrealistic expectations that cause them not find a realtor to work with not the realtor themselves!
Bill McLaughlin is a pretty good agent.
He works with investors. Not sure agents deal with subject to's as that is usually between you and the seller and part of the point is to avoid agent fees.
His email: [email protected]
Reread Elizabeth's post over and over.
"subject to, and creative investing in general"
What this usually means Is the person saying they are investor has limited to no funds to get started. Not always the case but many times is.
A busy broker/agent isn't going to give stuff like this the time of day.
I will give you as an example I have many clients in commercial real estate and always acquiring more. They have to have money and I will spend time helping them learn as they might hold the money currently in stock and have never purchased real estate etc. If someone contacts me and they have no money and they want creative finance type stuff it's a waste of time for me. I politely tell them that I can't help them and they need to keep networking to eventually find a deal. I am nice though and do not mention the other things your broker/agents said when you called them.
The more creative something gets the less it has a chance of closing. Brokers/agents make money when a closing occurs. Everything else before that in most cases is a time loss leader. There are too many buyers with all cash or some cash down to get a regular loan. The only all owner finance deals I work on in commercial is foreign to local investors who have a bunch of cash but for one reason or another can't currently get a regular loan. In those cases I still get paid very well out of the buyers down payment and the seller feels security in a liquid buyer.
You might have found some brokers/agents to do this kind of stuff back in 2009, 2010 when markets were frozen and sellers would do anything to sell a property. Today in most situations you don't have to talk to buyers employing these strategies because regular buyers are in such abundance to do deals. Not trying to discourage you but that's the reality.
Look up podcast 70 on here and connect with that person. I think you will get more out of that then trying brokers/agents.
I totally agree : " Good agents aren't going to
ruin their reputation (very important in this business)
to through hundreds of low ball offers or spend
thousands of hours for a 60k property "
@Jeremiah Damiron - The best agent that you will ever find is the one that stares at from the bathroom mirror each morning.
The average Realtor really doesn't understand investing. And most of the ones that really do understand it, are either too busy helping well-established investors, or they are buying the deals for themselves. And most Realtors don't want to run around opening and showing a newbie 30 plus houses in the hopes that he/she will buy one. I know, because I was that newbie at one time and I was not a Realtor myself at that time. Disclosure: I am a combo investor/Realtor.
2 votes for @Jenkins Ramon
If I hear someone wanting to get "creative" I'm really hearing
"I have no money and I don't know what i'm doing"
Im not saying getting creative can't work. I have put together some pretty creative deals but if one wants to try and get creative the only logical way to go about it is to get licensed. A creative investor is just a drain on a Realtors time.
Yesterday I had a so called "investor" from way out of state call me wanting to invest in "fix & flips".
Throughout the conversation it became apparent that she really had a pipe dream of wholesaling these properties. Her desired method to make this dream a reality was to have me run around town and write ridiculously low offers on property after property hoping one stuck.
& the kicker was
When I explained that to write an offer she would need to include Real Earnest Money & real proof of funds as in bank statements & I wanted the EM check in my hand before writing an offer this became to big of a hurdle for her. This was her quote "If I had to put up EM for every deal i'd go out of business"
Needless to say she is still looking for a "Creative Agent"
2 votes for Elizabeth Colegrove
Bryan has a good point.
If you want to go against the grain and want to put in a lot of offers (You are going to have to put in a lot of offers to get anything to stick) you would be best off to get your own license.
For all the reason everyone else is saying you aren't going to have an easy time finding an agent that will want to do what you will probably need them to do.
I'll also reiterate that for the specific stuff you are looking into doing you are going to have a better chance with off market stuff anyway. However getting a license lets you work that angel and has other advantages as well.
@Jeremiah Damiron I agree with Elizabeth. Go to your local meetings and you'll find who others are using.
There's always Good Brokers at our meetings!
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