how to help investor close deals?

Question

Hi BP

Long time investor, new agent.

I have a handful of great investor clients.
I find them deals, I even go out of my way.
Property I find have great potential.

I provide them with tools I wished my realtor gave me.

I have Docusign for the offers they do.

We put in offer.........

I hit a huge wall.
Offer rejected by agent before seller sees is. 
Always multiple offer, or close to asking offer comes in.

Which I'm shock bc I'm thinking newbie.....these houses are a wreck or have hidden issues.
Property goes contingent......

And then active again..... investor saw inspection and bails.
Or they took our concern and they realize its a problem....withdraws to deal with it.
Or.....active, and I'm say hello, over here...resubmit offer, hello? Hellllooooo?

Or multi unit... 12%cap say investor
Seller is self manage.... but use 10% cap.

Any advise on how to close the gap?

I've written offers after offers.
I am starting to contact agent first to feel out seller expectations.
I am working expired, cold calls
I also write with offer, my buyer understand all the issues and still will proceed....

if it wasn't for my own passion for investing....

Any advise, pearls of wisdom?

Chris Martin · Answer

I don't fear having my license suspended because I am not licensed.

The applicable section is: 475.278?Authorized brokerage relationships; presumption of transaction brokerage; required disclosures, specifically (2)(e) and (3)(a)8. These sections state the duties of a broker as: Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing; As far as "law" goes, section 475.2801, entitled?"Rules", states "The commission may adopt rules establishing disciplinary guidelines, notices of noncompliance, and citations for violations of ss. 475.2755 and 475.278."

It looks to me like FL is similar to NC in that if a broker doesn't perform brokerage duties, the jurisdiction is the real estate commission, not a court room.

Here is an example from a disciplinary report (names removed): "...The Commission revoked the broker license of Ms. S effective April 1, 2010. The Commission found that Ms. S, broker-in-charge of a sole proprietorship, listed a foreclosure property, the sale of which would earn a selling agent a bonus of $1,800 plus full commission, and subsequently presented an offer to purchase to the seller from buyers whom she had represented in approximately five or six previous transactions, listing herself as seller sub-agent on the contract. The Commission also found that Ms. S received a second substantially higher offer from another real estate broker three days after the first offer and failed to present the offer to the seller although the first offer had not yet been accepted." This is a REC matter, not a criminal matter.

FL reference from http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0400-0499/0475/0475.html

Jennifer Lee · Answer

My broker said no to approaching seller but I can present offer to sellers in person.

Account Closed · Answer

Chris Chapter 475 F.S.   When you say this is commission rule, in N.C.,  does that mean that your only fear would be having your license suspended.  You don't have to worry about going to jail.
In Florida,this is not a new law.  It has been that way for  as long as I have been teaching real estate law.

Chris Martin · Answer

Ron Climer regarding "In Florida, an agent can not reject an offer without the seller knowing about it. This is a violation of the law. That agent could be paying a fine or suspension. I suspect that this is a violation in your state." Do you have a FL general statute reference? I assume it is a misdemeanor? I guess with all the housing mess in FL their legislature decided to crack down. In NC this is a real estate commission rule as opposed to a law.

Jennifer Lee · Answer

Yes don't get me started on wholesalers, I'm giving my broker grey hairs with the mention of them.

But yes my investors know their stuff, hence the price.
And the newbie, wholesaler, contract flippers are getting the bids and bailing

Wayne Brooks · Answer

I feel your pain, there's a lot of wholesalers, inexperienced buyers, etc so these properties flip flop in and out of contract.  As others have said, we'll make an offer with No inspection clauses, and like you suggest maybe some language acknowledging existing issues.

Jennifer Lee · Answer

Thanks for the encouragement!!!

Account Closed · Answer

As you talk to sellers that say their property is self managed, point out to them that management is an expense .  Is their time valueless?  We could also remove lawn maintenance from the pro forma statement if the seller cut the grass.  We could remove pool maintenance if the seller will clean the pool.  This is non sense.  You need to point this out to the seller, gently.

Oh, You are not talking to the seller.  You are talking to the listing agent.  Start talking to the seller.  There is no law that says you can't talk to the seller.  There is probably no MLS rule that says you can not talk to the seller.  You would need to read your local MLS rules to be sure.  It certainly is not a violation of the code of ethics.  Unless you believe the listing agent is a better salesperson than you are and has your best interest at heart, talk to the seller.  Present your own offer to the seller.

In Florida, an agent can not reject an offer without the seller knowing about it.  This is a violation of the law.  That agent could be paying a fine or suspension.  I suspect that this is a violation in your state.  Call your old real estate school instructor and ask him.

I notice that you are figuring out that listing is more lucrative that working with buyers.  You are doing the right thing calling expireds and fsbos and foreclosure victims.  Here is some help with that.           http://www.youtube.com/watch?v=lYGyZalrIbo

Cash flow is essential.  You know that. You are on the right trail.  Keep plodding along.