Do real estate agents not like investors?

Involved In Real Estate · Pennsville, NJ · Member since 2014 · 54 posts · 4 votes

Why do no agents call back? 4 different agents in the past 2 weeks I get no return calls. I tell them I am interested in a certain property and I tell them if you have any more in the area around this price range I would like to see them as well. That say I'll put something together and call you back And then... Nothing

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Account Closed

Dallas, TX · Member since 2013 · 4k+ posts · 744 votes

12y

A bank statement will get a real estate agent attention.

Joe Gore

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Brie SchmidtBusiness Member
Moderator
Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
12y
@Dylan Burnett - I would say it is a general lack of follow up and communication in the industry.
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Roxanne B.
Vendor · Dublin, CA · Member since 2014 · 2 posts · 0 votes
12y
Yeah it can be pretty frustrating. As a Realtor, I have experienced that with other Realtors when I call about their listings or even when I'm in situations where we are in Escrow and I need them to send me certain docs that are required. For the most part, I have noticed that some agents are faster responders when they get an email than when they get a call. Possibly try sending them an email? But, I would also suggest moving onto another agent that responds quickly to you because they are more likely to be "on top of things".
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Jon Holdman
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12y
Do you have cash for down payments or full purchases and a pre-approval letter if you're borrowing? Those will help the agent know you're a serious buyer.
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Dylan Burnett
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Involved In Real Estate · Pennsville, NJ · Member since 2014 · 54 posts · 4 votes
12y
@Jon Holdman im 21 so I sound young but she asked me if I hbought with cash I told her yes and she asked me about bringing proof of funds i also told her yes I know that.

@Roxanne B. I will definitely try and email too
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Jon Holdman
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12y
Are you really buying or are you trying to wholesale? If you're trying to buy and have cash to do that I would think that would get an agents attention. If you're trying to wholesale I think you're barking up the wrong tree. You should be doing your own marketing.
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Phillip Dwyer
Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
12y
Are you working with an agent already? If you are, then have them make the calls for you. If you're not, make that clear to the agent you are trying to contact.
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Account Closed
Dallas, TX · Member since 2013 · 4k+ posts · 744 votes
12y
A bank statement will get a real estate agent attention.

Joe Gore
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Dev HornPro Member
Flipper/Rehabber · Arlington, TX · Member since 2013 · 1k+ posts · 2k+ votes
12y
@Jon Holdman is absolutely right - you are barking up the wrong tree. Smart agents/brokers ask for Proof of Funds (POF) before they will make an offer for you (or even show you properties... listing agents for bank REOs want POF up-front before they do ANYTHING). But once they have it, the good ones respond. I'm not saying at 21 you can't show that, but just be prepared.

You need to go direct to sellers with marketing. And learn everything you can about real estate so you can come off as super knowledgeable - that's the main way you can overcome the youthfulness at the beginning.

I know young guys that do it, but they partner with (old) people (like me =) at least at the beginning.

“The greatest success stories were created by people who turned problems into opportunity.” ~ Joseph Sugarman
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Rick H.
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
12y
Dylan - I can tell you the problem however you will have to work on solving the problem.

The problem is: you don't "smell" like money (to them).

You need to practice how you sound and come across on the phone. I don't care if you sound like you're twelve years old, this can be done!

Prepare for your call with questions to ask, in advance.

Don't tell them you're an "investor" as that's a red flag in the minds of many agents and synonymous with 'dreaming time waster person.'

Don't try and sound overly friendly and certainly not giddy.

Here's a resource to check out by my friend Tony Alvarez: REOMentor. Tony is retiring this year but has bought a fleet if over 200 houses in the SoCal high desert area known as the A.V. and uses a model utilizing buying through agents. He tells people how to talk to agents and how to approach them.

Now, if you are just hot air and a wannabe investor, I suggest that "talking a good hunt" won't be enough, so you'll need to think through different ways to find and acquire. If that's the case, consider strategies that buy direct from owners or distress situations.

Since I deal with attorneys, I had to train them how to work with me in the beginning. I wonder how your agents will respond to the rolled up newspaper technique that I prefer to use? Where is Cesar Milan when you need him?
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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
12y
The POF is your actual money and not from a hard money lender.

In commercial is someone comes to me wanting to buy with no money I don't waste time with them.

I have other clients who have the money and are serious and ready to purchase.

Smart brokers/agents realize over the years what makes deals have a high chance of closing or falling apart. Based on this criteria you take clients who you know can perform and spend time with them.

Talk is cheap. Send that broker/agent your proof of funds in your bank with a statement valid within the last 30 days and they will take you more seriously. If you are really wholesaling be honest about it because it will only hurt you more in the industry later on.

Good Luck
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Todd Plambeck
Agent/Investor · Murphy, TX · Member since 2013 · 542 posts · 304 votes
12y
How many calls do you think they get a week like yours? Are you calling them back to follow up? I'm sure they get a ton of calls from "investors" that just went to a weekend seminar and are just wasting their time. Try going to their office and meet with them, ask them questions about the market, stroke their ego and let them see that you are more someone reading them a script out of some guru manual. Get some of their cards and tell them you know someone looking to buy or list. Give them to your friends and co-workers that are looking to buy and sell houses.
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Dylan Burnett
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Involved In Real Estate · Pennsville, NJ · Member since 2014 · 54 posts · 4 votes
12y
@Jon Holdman & @Dev Horn I am not trying to wholesale the properties I call about, I have a experienced investor willing to do it with me if I find the deal. I also have sent out direct mail and I am going to keep doing that but all my leads dried up or aren't motivated. Have to be consistent though

@Phillip Dwyer and no I am not an agent and I do tell them that during the conversation
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Tiffany Plovie
Bellevue, WA · Member since 2014 · 183 posts · 86 votes
12y
@Dylan Burnett

I was your age when I started my first business. I remember all too well the rolling of the eyes, and the 'we will get right back to you' comments.

A good agent knows where his or her bread is buttered, so-to-speak. The initial phone call is just the beginning of the screening process. I would follow up with an email regarding details about the property you were inquiring about, ask you a little bit about yourself and request a proof of funds before proceeding any further.

As an agent, I have faced the same problem. I have had amazing, well-qualified buyers ready to purchase NOW, and not had the listing agent call me back. It is incredibly frustrating. Mostly, I feel bad for the sellers... They are cutting a rather large check, and have no idea their agent is ho-humming around home or shopping at Saks, blowing off calls.

Frankly, if they do not respond in a timely manner (24hrs or less) or ask for proof of funds, show them the door. They are not worth your time, let alone your business.
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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
12y
"I have a experienced investor willing to do it with me if I find the deal."

Those are long shots to. The broker/agent wants to talk to the money person. You are saying one thing but the actual cash partner might be saying something else when the time comes to plop the cash down.

You want to hear it from the horse's mouth so to speak.

I don't do residential but this is almost like an adult son or daughter wanting to buy a house to live in. You find out that dad or mom, grandma etc. is putting the money down.

You get them included from the start of the process and their take on things. Otherwise you do all this work to find one person loves the property but the one making it happen can't stand it and you wasted all of this time and don't get paid.
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Account Closed
Dallas, TX · Member since 2013 · 4k+ posts · 744 votes
12y
A good agent will ask for proof of funds upfront, and if you cannot provide it; they want to waste their time with you.

Joe Gore
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Kenneth Huddleston
Real Estate Investor · Troutdale, OR · Member since 2013 · 92 posts · 22 votes
12y
As for do real estate agents not like investors? No way in hell. Maybe if they're morons. A rehabber or landlord provides a realtor with multiple deals a year, which can pay a hefty sum. Even wholesalers, who do not purchase the property, will usually advertise the services of their realtor to numerous rehabbers and landlords which are clients they will want. Besides, I wouldn't say for certain, but I am pretty sure that a buyers agent can go along with the contract, and even if they don't the rehabber could very well decide to use them for the sake of closing quickly. Just keep trying and you should get a response.
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Dylan Burnett
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Involved In Real Estate · Pennsville, NJ · Member since 2014 · 54 posts · 4 votes
12y
@Rick H. appreciate the advice I will give it a try. Looks like I will have to train them then.

@Tiffany Plovie thanks good to know!
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Dylan Burnett
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Involved In Real Estate · Pennsville, NJ · Member since 2014 · 54 posts · 4 votes
12y
@Account Closed If they ever asked i could show them

@Joel Owens I never tell them that i just say I have cash i am looking at this property...etc
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Account Closed
Dallas, TX · Member since 2013 · 4k+ posts · 744 votes
12y
@Dylan Burnett,

Don't wait for an agent to ask you for proof of funds be proud and say I have my bank statement in hand ready to buy real estate.

Joe Gore
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Jon Holdman
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12y
@Dylan Burnett you say:

Do YOU really? That is, can you show them a bank statement with YOUR name on it that shows the money to close an all-cash purchase? Lots of "investors" say stuff just like this but cannot produce the bank statement.

You say:

Sorry, but what you're doing is a lot closer to bird dogging or wholesaling than actually buying. You're out hunting for deals and then you will have to propose them to your partner.
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Dylan Burnett
OP
Involved In Real Estate · Pennsville, NJ · Member since 2014 · 54 posts · 4 votes
12y
@Jon Holdman He would be coming to these proposed deals with me. What are you saying that it isn't a good idea?
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Phillip Dwyer
Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
12y
@Dylan Burnett They are saying that since you are not the money person, people are not taking you seriously. You could form an entity for the partnership, then provide proof of funds for the entity and proof that you have the ability to act on behalf of the entity. This would help.

In regards to my previous question about whether they asked you if you were already working with an agent. Whenever a consumer calls me about one of my listings, I always ask if they are already working with an agent. There are both ethical and monetary issues here that need to be resolved with that question.
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Jon Holdman
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12y
@Dylan Burnett I'm saying that you are not really the buyer and you're not making cash offers. You making an all cash purchase would mean you are the one and only decision maker and you have the cash in your bank account to close the deal. Sellers and their agents like such buyers. There's nobody else to interfere and no lender to have issues and delay the closing.

When you say this other investor is coming into the deal with you it means that they have given you a set of guidelines about what constitutes a deal. You are then looking for properties that meet those guidelines. If you find something, you'll then go back to this investor and discuss the deal with them. If they like it, then you can actually make an offer. From the agents perspective that's a far different situation than if you were a true cash buyer. And far, far less likely to close. In fact, your offers are even weaker than an offer from a financed buyer who can make their own decisions.

It may not have been presented to you as such but you are really bird dogging for this investor. You're out scouting for deals that's he's really going to be the one to do. You're going to bring deals to him and he's going to cherry pick any he likes. Hopefully you don't get cut completely out of the deal, but that may well happen.
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Dylan Burnett
OP
Involved In Real Estate · Pennsville, NJ · Member since 2014 · 54 posts · 4 votes
12y
Jon Holdman yes I understand it is bird dogging. Eventually when I can refi I buy him out for a small amount of money. But he is literally coming with me to these houses. I'm not going then telling him about it later.
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Brian Mathews
Contractor · Round Rock, TX · Member since 2013 · 767 posts · 389 votes
12y
Originally posted by @Dylan Burnett:
Jon Holdman yes I understand it is bird dogging. Eventually when I can refi I buy him out for a small amount of money. But he is literally coming with me to these houses. I'm not going then telling him about it later.

As you get older and more experienced, you'll understand what people are trying to tell you. You are not the money guy, so they have no interest in talking to you. Regardless of what the relationship is, experienced realtors have the perception of what probably 99.5% of this type of transaction really is. Maybe you are the other .5%. Don't know. A lot of people don't realize how valuable time is, they think time is free. It's not, you have a finite amount of hours and minutes in a day to get work done, spend time with family, decompress, etc.... Experience has led them to recognize somebody who will take away some of that precious time. As others have told you several times, you need to have proof of funds in your bank or however it may be so that they take you seriously without your dad hanging around. Don't even mention him and have something verifying you have money to spend independent of dad's decision.
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