I apologize if this is answered elsewhere, but I couldn't find what I was looking for. I am looking for my first SFH or duplex in central Texas, from NE San Antonio to south Austin. This covers a LOT of territory - Schertz, Cibolo, San Marcos, New Braunfels, Lockhart, Kyle, Buda, etc. I have an exclusive agreement with a Realtor that is based in San Antonio. However, I have realtors interested in sending deals my way closer to Austin and surrounding area, but I'm locked in. Is there an agreement that would allow a different realtor bring me a deal, have my realtor close on it and get the commission, and offer the realtor that brought me the property a % of the profits once I flip it? Is this completely unorthodox, or do others do something similar?
Hopefully this isn't a completely amateur question, but hey, I am an amateur at this point!
Thanks in advance for the feedback.
I wouldn't think an "agreement" would be a binding contract... I think you should be able to terminate your agreement with the realtor. I had an agreement with a realtor to sell some property for me, after 6 months of no phone calls or any contact from her whatsoever, I contacted her and had her send me a contract that terminated our agreement. I now have a more competent realtor listing my property.
Tell the agent that they have not provided you with the information requested and that you wish to terminate the buyer's representative agreement. (If you haven't signed the agreement, there is nothing to be concerned about.) No agent would want a client to be bound to an agreement if they want out. On the other hand, if the agent did provide information/assistance that results in a sale they deserve their commission.
I should clarify that I am happy with my realtor - she is an investor, but has limited access to MLS in other areas I am interested in. An additional partner/realtor is what I was looking into the possibility of. There are two additional realtors that do investing as well, that want to work with me, and they know what I am looking for. Could I work up a partner agreement with them? They wouldn't get a commission on a sale, but I could bring them in for a % of profit at time of the flip if they originally found the property, couldn't I?
I'd just tell her what's going on and that you do not wish to have an exclusive representation with her. Agents who work with investors don't have a problem with this. If she brings you something that turns into a deal, she gets paid. But not for deals she doesn't originate/facilitate.
Exactly. At worst, you could keep her agreement in place, but only for the area she actually services/has MLS access to.
Explain your situation to the realtor you have the agreement with. They need to understand that it's a numbers game for you. You can't be bound to a single realtor. If they have pocket listings for you, great. If they bring you a deal, you'll definitely use them. However, you cannot be bound to one realtor, and asking for you to be bound to them shows they have no understanding of how an investor works.
Offer to explain things like the 70% rule, sub-to, wraps, etc., and let them know you're the answer to their hard to help customers. They certainly have customers with credit scores that could use help. Show them how you can be the answer to getting that person into a house, building their credit score, and being the guy who gets them a commission on someone they wouldn't normally be able to for some time.
Thank for all the quick replies! Good stuff
As an agent, a contractor and investor, I partner with clients but I still get the commission on the purchase, regular rates for my construction business, commission on the sale, and split 50% of profits, with none of my cash in the deal. I feel that if my deal is good enough, and i handle all of the details, then a 50% split for not doing much is a good deal for my clients. Keep in mind, you can always negotiate to try and get the terms you prefer. Example: if you are handling the rehab, and funding the deal, then you may want 75% of the profits. Good Luck!
You should have a real estate agent from each market. If the San Antonio agent doesn't have access to the Central Texas MLS or ABOR MLS, then she cannot really serve you in those areas.
Timothy, I am a long time broker, investor, and investor coach. I am assuming you have a buyers agency agreement with your SA realtor and it says she represents you in all of Texas. If you want to have her to represent you outside her mls area, I would recommend researching properties in the other areas thru free mls in each area and focus on working with the listing agent of a property you may want to purchase. That way she can contact the agent, arrange how to show the property and write the offer. Its a little tough to do that research but most consumers do this already.
Regarding working with an outside agent, you must get permission with your existing agent to contact other agents so she is in the loop and inform the other agents of your proposal to participate. If they don't want to participate in the profits, give them the listing once you get possession or when its ready to market.
For me, I would do whatever to create a deal, relationship and profit from it. I am a Austin area MLS member but work mostly the Temple/Killeen market place. I have an agent in Austin MLS and he is an investor/realtor as well so he understands what type of property to look for. The problem we have been having is the multiple offers on all possible flip properties. Investors are paying way over asking price. More of a speculative type buyers. Hope this helps and good luck to you.
You could always "fire" your current agent at any time but that agent would have rights to a commission on any properties that she showed to you. Since you want to keep her as your agent in one specific area, just explain the situation to her and re-write the agreement to make her your agent only for the specific geographical areas you want her to be your agent.
As and investor who is also a licensed agent represents investors, I'm always agreeable to doing what works best for the investor as long as I'm compensated fairly for my services.
Have them amend the buyer rep agreement to only include areas that she has mls access.
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