Why are agent's turning me away?
Rutherford, NJ · Member since 2017 · 15 posts · 4 votes
Why are agent's turning me away?
Most Popular Reply
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
8y@Account Closed Hard to say why they would be turning you away. Here's my guess (if you're buying outside of where you live): They get contacted through these automated one-click methods by tons of "investors" that have unreasonable expectations, no money, etc. and just want an agent to wing out low-ball offers. That's a random educated guess based on what I see from some frustrated new investors that are "working with" (quote intentional) agents.
So here's what I would do in your position. By the way, I'm not an agent:
"I'm an out-of-state investor that just bought 123 Fake. St. for $150K in Fake City. I'm sitting on a down payment and a pre-qual letter that will let me buy another property and I'm looking for something between $125K and $165K. What I'd really like to do is clone my $150K deal that I just closed. Do you think you can help me?"
At least then you're stating that you're someone that has closed on a property, has money to deploy, and you know what you're looking. Now that doesn't mean it's going to be that particular agent's cup of tea. That doesn't mean that all will be eager to work with you. Maybe some just loathe out-of-state investors. I know I ask 50 more questions before I book a plane ticket than I would if I was interested in a property 15 minutes away.
Who knows, maybe my message will fall on deaf ears. I'm not an agent so I don't have to deal with inbound inquiries from out-of-state buyers like me ;-)
44 Replies
- Rutherford, NJ · Member since 2017 · 15 posts · 4 votes8y
Thanks for looking. We have them for sale at that price. Zillow isn't nearly the best measure. And I get your point, but I'm careful with what I consider realistic. I've had much success being the opposite. btw, I saw you liked the guy's post who was snarky with me because I didn't like that he called my email "nonsense." Not cool to treat newbies who have questions like we're asses.
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes8y
Without us being able to hear you on the phone, there is simply not enough information for any of us to know what is going wrong. We can deduce that you are likely doing or saying something to turn off the agents because swinging and missing on 3 out of 3 is telling. You would think at least 1 would say lets close a deal. So is it your approach, is it expectations for the market? Us out here on the internet have no way to deduce.
District Invest Group545 Reviews - Rutherford, NJ · Member since 2017 · 15 posts · 4 votes8y
Good point Russell. I'm not so sure that's the case though -- that I'm offending them in some way. I've shown my email to base your judgement on. From a lot of people, I hear agents are picky and that's what I'm trying to suss out. The other two agents were from another brokerage that I sent the same info to. So if you honestly think my email was a "turn off" please elaborate. Basically you indeed have all of the info.
- Real Estate Broker · Chicago, IL · Member since 2015 · 1k+ posts · 2k+ votes8y
Originally posted by @Account Closed:
Very well -- here's what I wrote most recently . . .
"Hello Ms. Flaherty,
Thanks for the note. I'm interested in purchasing a turn-key property to rent for $1,500 or more for $135k or less. Those are basically the numbers that work for me. But I'm open to a broader range. I just closed on a property last month near Lake Minnehaha in a nice subdivision and I like the 3br/2ba with a garage homes. I bought it for way less than market value, but I closed that deal myself. I'm not looking for an agent to make low-ball bids for me. I'm just a regular guy trying to buy more homes at or below market value that I can cash flow and supplement my retirement.
Kindly,
. . . "
Your message gives the aura of a new "investor" fresh out of a seminar. What its saying to me is that you already know everything, you want a steal, and you don't need agents. But based on your discussion here, that's not at all the case - you've said your numbers are realistic to sales/rents in the market. Also, it reads to me like you are likely shotgunning the email to all agents by listing your criteria like that before establishing a relationship. I'd suggest trying a lighter approach, maybe something as simple as this:
Hi Carla,
I'm reaching out to you because I see you have a number of listings here in Anytown. I'd like to speak with you about purchasing a 3BR/2BA single family home, my budget is $135k and I plan to purchase with cash. Please let me know a good time and we'll discuss further. I can be reached anytime via email or at [Phone #].
Thank you,
Stephen D
Then you'll have a chance to discuss your criteria, plans, experience, etc. If you do mention handling the last transaction on your own, explain why you need an agent this time. And don't have it be just that you want properties sent to you, value the agent's market knowledge, network, etc. If you mention rents and prices, ask if them those numbers sound realistic. It'll give the agent an opportunity to demonstrate what they know about the market and shows you are open to differing opinions.
One final consideration is how scarce are $135k homes in the area? $135k might be an accurate value for a 3/2, but if there is only 1 on the market every 3 months you aren't going to get much engagement from agents.
- Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes8y
@Account Closed on these forums. He is really an easy guy to get along with, so that tells me something about you.
- Real Estate Broker · Provo, UT · Member since 2013 · 689 posts · 511 votes8y
People work for people, and money is simply a satisfier and a byproduct of the results.
Solid agents will work for YOU, not for the commission, and if you want somebody to work for YOU, you really should be cool.
- Real Estate Broker · Provo, UT · Member since 2013 · 689 posts · 511 votes8y
@Jay Hinrichs For sure the representation game is a 2-way street. I got into this business years ago specifically so I can do whatever I want, with whoever I want, pretty much whenever I want.
I have no reason to bang my head against the wall because of a client personality conflict - I have enough other reasons to bang my head into the wall.
- Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes8y
When I read your e-mail, the part that would turn me off was the part about how you bought it way under market and without an agent. I'd lose that part and just let them know you're an active investor looking for a turnkey 3/2 with a garage for $135K where comparable rents are $1500 per month, that you have cash and are ready to purchase, and to please contact you if they can assist. If that is normal price and rents for your target area as you suggest it is, then you should have no problem finding an agent to assist you. Including the part of how you've already done it cheaper on your own makes it sound, however unintentionally, like you are pretty aggressively telling them up front that you can do their job better than they can, and that would make me steer clear, thinking you are likely difficult to work with.
- Tacoma, WA · Member since 2018 · 230 posts · 257 votes8y
You have stated twice that your criteria are "very typical" for the area, but a quick MLS search of Clermont, FL shows that not to be the case (as someone already pointed out). How long did it take you to find the deal you already purchased? How long would it take you to find another one? Now imagine an agent spending that kind of time for a 2-3% slice of the pie, and don't forget that they have taxes and business expenses to factor in there. Now sure, it's not hard for an agent to send you that rare deal that pops up from time to time, but why would they send it to you when they probably have multiple clients they already know lined up who would gladly purchase a deal like that?
Three agents is too small of a sample size to know for sure, but there is a simple answer here... email them back and ask them if they think your criteria are reasonable. Or, you could send your criteria to a few more agents and eventually you will have a large enough sample size.
I would say the deal you are looking to find is possible, not "very typical". But to find that deal, you may have to do most of the leg work yourself. At that time, an agent will gladly write it up for you! :)
- Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes8y
@Account Closed work to source deals for someone who has bought with him 5 times in the past? Maybe. I don't know. He can tell you if he'd call around asking about pocket listings for a client. But I really, really, REALLY doubt that Russell (I'm sure he loves it when I theorize about him) would do it for a random person that send him an email over the interweb.
Side note, making comments that you don't appreciate someone "liking" someone else's post who was snarky to you...well...that comes across as petty, bitter, or both. That you'd spend your time looking at who did or didn't like someone else's posts (instead of trying to reach out to more agents) says something about your prioritization. You don't need to "win an internet argument" to be successful in real estate. Even if you do find replies rude or snarky, there's some grain of truth in there. After all, if someone had a terse reply that you agreed with, you wouldn't read it as snark.
The best learning that happens on forums is learning where you're wrong. That isn't exactly "fun" to hear but it's necessary. And if you disagree with the number of listed properties tell people how many you see showing up. Maybe you're looking at a much broader area and there are 150 options instead of 3. If there are only 3 options then your beef isn't with the agents, forums, people posting replies, etc. it's with the pesky free market.
- Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes8y
I can tell you as a principal commercial broker and an investor myself I get contacted all the time nationally from potential clients. The difference being the investors are buying property in the millions to tens of million in dollars at a time.
The first thing I do is assess ( Will they follow my system and complete my steps?) If answer is NO then we do not proceed any further. WHY is that? It's because with almost 15 years in the business I have learned what type of business I like to run and want clients who fit into the funnel nicely.
Anyone who falls out of that funnel is either unrealistic with the market, will take up every waking second of the business, or has power control issues where they want to do it THEIR way.
I get it but will not be working with them. Once a broker/agent is established just like an investor they can automate their business and drill down on what they want and do not want in a client.
I ask for financials right off the bat. If buyer wants to remain secretive then BYE,BYE. I do not want to spend a second on a buyer that I cannot validate they can do what they say they will do. Talk is cheap. I want to see the MONEY.
If a buyer is looking for something very tough or in a very low price point then maybe find an agent that is hungry just starting their career.
The established broker and agents typically have worked their way up into larger deals and more return on their time.
Why is the original poster contacting regular residential retail type agents for investor properties? Those would not seem the ideal fit as they generally will not have that type of inventory. They will usually want to sell to homeowners for the higher price and commissions. More inventory is priced closer to market then not so there is more for the brokers/agents to natural sell as there are less sellers selling for steep discounts.
- Realtor and Investor · Scottsdale, AZ · Member since 2017 · 1k+ posts · 1k+ votes8y
Are you sure that you conveyed that you were an investor looking to BUY?
When I hear "I want a 3/2 rental", I refer them as I don't do rentals (there isn't any money in them) unless the Tenant would be a good fit for one of my portfolio of rentals.
IF you are looking for a realistic price range for the area, I don't see why a Realtor would shun you. Maybe next one you call, lead with, "I would like to buy a home with a tenant already in place" or "I would like to buy a property with this criteria". It really shouldn't matter to them that you are an investor. Usually only the lender cares.
- Investor · Pueblo West, CO · Member since 2014 · 310 posts · 213 votes8y
Originally posted by @Andrew Johnson:
@Account Closed Following on your post talking about $135K and $1,500 rent I would imagine it's the $1,500 rent that will become a little dicey. For what it's worth I would never depend on an agent to "guess the rent". Don't get me wrong, A LOT of them can and they can be pretty accurate but they don't have to live with your post-sale. You've bought properties in the area so you should be your own expert on the prevailing rent, what's achievable, etc. What might be more helpful is if you narrow the criteria for the agent that you believe will yield that $1,500 rent. Maybe it's...
"I'm looking for a 3 bedroom, 2 bath, 1500 sq ft.+ SFR that was build post 1980 in _____, _____, or _____ neighborhoods for $135K. I'm happy to do some light cosmetic updating post-purchase but I'm looking for something that I can rent like my property at 123 Fake St."
But as others have said, if there's only 3 homes that fit into that "box" listed on the MLS a lot of agents will know that already. They'll know that if you've recently bought you've looked at the area. They'll know you can see that there are 3 listings. Even if some of the people posting are wrong and there are really 15 listings it's still a tiny, tiny number.
So, almost by literal definition, you're asking for something that doesn't exist on-market. You're not asking them to help you go: 150 prospect properties -> 15 worth previewing -> 3 great options -> escort you when you fly out -> negotiate hard on your behalf and help you close on the best property. Again, assuming people looking at the MLS are right, you're asking them to source your deals.
Now, would @Russell Brazil work to source deals for someone who has bought with him 5 times in the past? Maybe. I don't know. He can tell you if he'd call around asking about pocket listings for a client. But I really, really, REALLY doubt that Russell (I'm sure he loves it when I theorize about him) would do it for a random person that send him an email over the interweb.
Side note, making comments that you don't appreciate someone "liking" someone else's post who was snarky to you...well...that comes across as petty, bitter, or both. That you'd spend your time looking at who did or didn't like someone else's posts (instead of trying to reach out to more agents) says something about your prioritization. You don't need to "win an internet argument" to be successful in real estate. Even if you do find replies rude or snarky, there's some grain of truth in there. After all, if someone had a terse reply that you agreed with, you wouldn't read it as snark.
The best learning that happens on forums is learning where you're wrong. That isn't exactly "fun" to hear but it's necessary. And if you disagree with the number of listed properties tell people how many you see showing up. Maybe you're looking at a much broader area and there are 150 options instead of 3. If there are only 3 options then your beef isn't with the agents, forums, people posting replies, etc. it's with the pesky free market.
I think it's a good point to not expect the real estate agent to estimate the rent on a house. You should be doing that. Tell them what type of house you want in what area and your price range.
If you are contacting people from out of state, I think that could be problematic for some realtors. Maybe the people in the past from out of state were all talk?
I had a really hard time finding a rental real estate agent that would show me apartments before I moved to Florida in 2011. I was a graduate student at the time, but I was starting my first academic job in a few months at their local University. The university gave me $500 to cover the cost of a trip to find a rental a few months before my start date (August 15th). It was the middle of April and I was trying to find a rental sometime May 1st to August 1st. I told all 3 agents that I was flexible on my move date, but nothing later than August 1st.
All 3 agents refused to work with me because they didn't believe me that I was going to actually move. Apparently there is a problem in Florida with people on vacation contacting rental real estate agents asking to look at rentals with no firm plans to actually move to Florida.
Pretty much all 3 agents told me that once I actually move to Florida, then they will help me. Because I currently didn't live in Florida they told me "thanks, but no thanks." However, the whole reason I was in town was to find a place to live "before" I moved to Florida. One specific agent said to me, "You are here to go to the beach, so go to the beach." Overall, it was a very bizarre experience.
- 8yJennifer BeadlesPro MemberRental Property Investor · Phoenix, AZ · Member since 2016 · 424 posts · 261 votes
@Account Closed Most agents have no clue how to work with investors, and they usually don't want to tell you that. I've had a ton of agents send me investor leads because they had some preconceived idea that investors were disloyal and only wanted to submit low ball offers, and I was happy to take them on and help them buy multiple cash flowing properties.
As an agent and investor who buys using agents in multiple markets, I'd first reach out to a few local property managers and ask them if they have any investment savvy agents to refer. Then when you get a few names let them know what you're looking to do, and that you already own properties, are pre-qualified or paying cash, and that you'd like to establish an exclusive relationship with someone who regularly finds great deals.
Then you want to ask some pre-qualifying questions to make sure they know what they're talking about. Ask them if they own rentals, see if they know what the 1% rule is, find out if they have off market deals etc. If they don't have good answers, move on until you find the right one.
Most agents who work with investors don't have to market themselves, they have enough investors looking for deals. So if you find a good one they will interview you, and that's what you want.
- Rental Property Investor · Closter, NJ · Member since 2015 · 884 posts · 722 votes8y
@Account Closed There's a saying in the real estate business, "Buyers are Liars." And Buyers are not Loyal.
We schlep Buyers from property to property, wasting time, money, gas, wear-and-tear on our vehicles, only to have them Buy from someone else. If you truly want a Real Estate Professional to assist you, step #1 is to sign a Buyers Agency Agreement. That will demonstrate your loyalty.
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