Realtors, low ball offers, and lead tracking software

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Realtors, low ball offers, and lead tracking software

Account Closed
Real Estate Broker · Aurora, IL · Member since 2017 · 159 posts · 53 votes

Hello All,

  Seeking some referrals for a few things. My partner/mentor and I are looking to start putting in a lot of low ball offers in on several listed properties in Will County, Illinois. Anyone know a realtor who might be interested in writing all these offers for us? 

Also once all these moving parts get going we are seeking some sort of lead tracking software where multiple parties can access and track all the leads and current projects. Anyone have any suggestions along with associates costs? 

Thanks in advance! 

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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
9y

Find a new agent who has nothing to do but stand around the office and drink coffee.

They might be the only ones that would do (shotgunning of low ball offers).

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  • Buddy Holmes
    Investor · North Charleston, SC · Member since 2017 · 277 posts · 91 votes
    9y

    I am not up to date on the latest, but dropbox is free and allows multiple parties to get to the same files in a directory.  You can have different directories and different set of individuals with access to selected directories.  I think Google has something similar if you don't mind data mineing.

    0Reply
  • Account Closed
    OP
    Real Estate Broker · Aurora, IL · Member since 2017 · 159 posts · 53 votes
    9y

    Thanks but looking for something to store more than just files. Something more automated that could track progress and send auto updates to all parties, have to do lists/tasks etc

    0Reply
  • Account Closed
    OP
    Real Estate Broker · Aurora, IL · Member since 2017 · 159 posts · 53 votes
    9y

    I'm looking into Podio. Anyone have any experience with that? 

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    9y

    Find a new agent who has nothing to do but stand around the office and drink coffee.

    They might be the only ones that would do (shotgunning of low ball offers).

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
    8Reply
  • Account Closed
    OP
    Real Estate Broker · Aurora, IL · Member since 2017 · 159 posts · 53 votes
    9y

    thanks @Iryna King 

    We are working in Dupage and Will County Illinois 

    0Reply
  • Iryna King
    Real Estate Agent · Ann Arbor & MetroDetroit, MI · Member since 2016 · 29 posts · 7 votes
    9y

    Got it! Thank you @Michael Smoczynski

    0Reply
  • Account Closed
    OP
    Real Estate Broker · Aurora, IL · Member since 2017 · 159 posts · 53 votes
    9y

    Lol Thanks @Joel Owens know any bored, over caffeinated ,young realtors in the Chicago suburbs?! 

    I get the advice though thanks I have been calling around the area as well. 

    1Reply
  • Matt Shields
    Broker · Phoenix, AZ · Member since 2015 · 351 posts · 273 votes
    9y

    You need to look at it from an agent's view. As someone who worked the "floor" for many years, finding a competent Realtor may be more difficult than you think. I always knew when there was a real estate investment roadshow in town because I would have people calling the next day offering me the opportunity to right hundreds of lowball, no interest, no money down, no credit, seller carryback offers for someone I had never done any business with. Even if I did get an accepted contract, creating, sending and archiving all of these offers, as well as fielding calls from torked off agents, just would not be worth it. 

    You may find an inexperienced agent or a dope, but is this who you want representing you? Your challenge will be to sell a quality agent. I would at the very least offer to sign a buyer broker agreement, and maybe even offer to pay them a little something for each contract submitted. Good luck.

    4Reply
  • Account Closed
    OP
    Real Estate Broker · Aurora, IL · Member since 2017 · 159 posts · 53 votes
    9y

    Thanks @Matt Shields that is why I am asking for referrals from the community here. The partner I am working with is strictly an all cash buyer with experience.  I am helping analyze and find deals for him in exchange for more experience managing rehabs and further education to continue to better my resume for acquiring additional private lending.  

    This isn't a "roadshow wholesale offer here" we have a specific set of criteria we are looking for but in this competitive market it is challenging to find deals. 

    In taking advantage of the technology we have available to us, as a team we can put in one offer a day and it would take an extra 30 minutes of our time. For the benefit of getting a closing commission and another commission after rehab completion. 

    Also getting involved with an investor who is rehabbing 5-8 properties at a time and looking to scale. If I was liscensed why wouldn't I be doing this is what I ask you?! You can show houses all day to 1st time home buyers, couples considering moving, etc all day and in the end they never buy where each showing takes several hours of your day. Working with investors you might spend extra time writing offers, but we are all in the business to buy and sell! 

    1Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    9y

    Get a new agent and have your partner (who you say has all the cash) to produce a bank statement with their name on it showing all of this cash with the account number blacked out valid within the last 30 days.

    Some people claim to have cash but it is really a hard money loan with conditions for funding tied to it. Someone with money sitting in the bank doesn't usually have conditions.

    The price point makes a difference as well. If your investor is buying for 40k and selling for 100k then a new agent is likely on a 50/50 split with their brokerage.

    40,000 sales price times .03 commission percent = 1,200 commission / 2 (half to brokerage) = 600 bucks before taxes and business expenses to the agent.

    A smart agent if they agreed to work on finding such properties would get the buyer to sign a contract to pay a MINIMUM COMMISSION amount per deal regardless of purchase price. This seasoned investor you are partnering with is having you find new agents to write offers because they know the one making money will not waste time on it. So it is likely a revolving door of new agents.

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    4Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    9y
    Originally posted by @Account Closed:

    Hello All,

      Seeking some referrals for a few things. My partner/mentor and I are looking to start putting in a lot of low ball offers in on several listed properties in Will County, Illinois. Anyone know a realtor who might be interested in writing all these offers for us? 

    Also once all these moving parts get going we are seeking some sort of lead tracking software where multiple parties can access and track all the leads and current projects. Anyone have any suggestions along with associates costs? 

    Thanks in advance! 

     Best move is to have you or your partner get licensed if you want to shotgun offers. No Realtor will want to do that without compensation. Plus you will save money on the list side and make money on the buy side.

    3Reply
  • Account Closed
    OP
    Real Estate Broker · Aurora, IL · Member since 2017 · 159 posts · 53 votes
    9y

    @Joel Owens

    Thanks for the advice on POF that can provide that for anyone interested in working with us. The lowball offer campaign is actually my idea as well to bring in more real flow. We have other streams of marketing going on as well. Just looking for referrals is all here Joel, but thanks again for making anyone interested feel like they are not a "smart" agent now. We are looking to purchase for 100-300k range depending which specific area within our market the home is and resale between 200-400k.

    0Reply
  • Account Closed
    OP
    Real Estate Broker · Aurora, IL · Member since 2017 · 159 posts · 53 votes
    9y

    Thanks @James Wise I am looking into getting liscensed myself in the near future. Thanks for the suggestion. 

    Again just looking for referrals for anyone who might be interested in working with us. 

    0Reply
  • Matt Shields
    Broker · Phoenix, AZ · Member since 2015 · 351 posts · 273 votes
    9y

    If your partner is already doing 5-8 properties at a time, doesn't he have a a relationship with agents that you could work with?

    1Reply
  • Account Closed
    OP
    Real Estate Broker · Aurora, IL · Member since 2017 · 159 posts · 53 votes
    9y

    None are interested in making the extra time in their days to put out a good volume of offers. 

    0Reply
  • Charlie MacPherson
    China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    9y

    @Account Closed Put yourself in my place.  As a full time agent, I receive no salary.  I pay all of my own expenses - and they are substantial, running several thousand per month.  

    No day is a day without expenses.  Every day without a CLOSING is a day without income.  

    Sure, offers are a necessary step in getting to the closing table, but "putting out a good volume of offers" as you put it is not only time consuming, but lowball offers are a fast track to damaging my reputation with other agents in the area.  

    I know that the overwhelming majority of lowball offers will fail. I'd be surprised with anything over a 0.5% success rate. 200 offers for one sale. 200 offers that I have to talk with the other agent about, write, send with EMD and POF, file, track, follow up with the other agent and communicate the rejection to you.

    Probably 2 hours in total for each offer.  That, if my estimates are right, is 400 hours for one accepted offer.  

    Let's be wildly optimistic and say that there's $10,000 in gross commission.  That's split between the listing and selling offices.  $5,000 to my office.  Let's stay wildly optimistic and say that the broker's split is only 25%.  

    There's $3,750 left for me.  For 400 hours worth of work.  That's $9.38 per hour.

    Want to make it interesting?  

    Guarantee a minimum commission and pay the agent $75.00 for each offer he or she submits for you.  At least then, the agent won't be the only one with skin in the game.

    8Reply
  • Account Closed
    OP
    Real Estate Broker · Aurora, IL · Member since 2017 · 159 posts · 53 votes
    9y

    Thanks @Charlie MacPherson that is a valid point and good idea. We will consider. Thank you 

    0Reply
  • Sonia Spangenberg
    Manassas, VA · Member since 2013 · 60 posts · 24 votes
    9y

    Well explained example Charlie MacPherson, and great solution suggestion at the end.  However, can Agents even take the $75 ethically though?  What would a broker's point of view be on that?

    1Reply
  • David Grabiner
    Investor · Chattanooga, TN · Member since 2016 · 146 posts · 108 votes
    9y

    Here is an idea, just make the offers yourself. Contact the listing agent and state you are interested in the property and don't have a buyers agent representing you. Then ask them to represent you in the transaction as well, and via email send them your offer and ask them to write it up and present it to the seller. As they are getting both sides of the commission they will have more incentive to get your offer accepted even if it is a low ball offer.  

    7Reply
  • Mike CumbieBusiness Member
    REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
    9y

    Hi @Sonia Spangenberg,

    Sure, why not. As long as you put it through the brokerage and did it by the book, then sure you can be paid to put in offers. You can be paid to show properties and you can be paid to hold an Open House for someone that is trying to FSBO it. I would not think most brokers would care (Although I could be wrong) as long as they get their piece of it. Regardless it is getting your name out there and growing your business, which in turn grows theirs.

    2Reply
  • Account Closed
    Involved In Real Estate · Houston, TX · Member since 2015 · 1 post · 2 votes
    9y

    @Account Closed above. I'm currently finding myself in a position similar to yours. It might take a little more time, but here's a little more to add to David's suggestion:

    Instead of shotgunning offers on MLS deals that you'll surely be competing with 100's of other investors on, start a direct marketing campaign, knock on doors, talk to neighbors, throw signs, etc. Get your name out there and find some quality off-market deals that you can capitalize on.

    Two things will happen when you do this: First, you'll be finding the best deals because they are all off-market (best margins at least) and also, you'll be wiping out all your competition because you are one of the only people to know about it.

    Once you locate the deals, write your own offers. Again, it may not be the answer you were looking to get from here, but it is a solution worth considering.

    Whatever you decide, good luck! I'm always here for help or other suggestions if you need them.

    2Reply
  • Account Closed
    OP
    Real Estate Broker · Aurora, IL · Member since 2017 · 159 posts · 53 votes
    9y

    @van 

    @Van Blackman

    Thanks for the suggestion! As said earlier already got the off market going as well. Just looking to increase the deal flow and have heard of some other investors in the area having some success streamlining processes with realtors using today's technology to pump out one offer a day on properties that will sit on the market for a while and get the offer in low before a price reduction takes place. I agree with all the realtors here that for some might not be the most attractive deal, but for some looking to increase their sales. I am seeking referrals 

    0Reply
  • Account Closed
    OP
    Real Estate Broker · Aurora, IL · Member since 2017 · 159 posts · 53 votes
    9y

    thanks @David Grabiner that's what I am currently doing actually, but it takes a bit longer that way starting business with a new agent every time l, but does expand the network though. 

    Appreciate the tip though I'm sure others could benefit as well!

    0Reply
  • Account Closed
    OP
    Real Estate Broker · Aurora, IL · Member since 2017 · 159 posts · 53 votes
    9y

    The lowball offers has taken the conversation here with all the agent/broker input, but I was also putting it out there if anyone is using podio or any other lead tracking software where multiple parties can access to do lists/tasks and progress on outstanding offers, leads, projects, off market conversations, rehabs, and listings with offers received. 

    Anyone have any suggestions or input on podio? 

    0Reply
  • Matt Shields
    Broker · Phoenix, AZ · Member since 2015 · 351 posts · 273 votes
    9y

    Sonia. There is nothing ethically (Realtor code of ethics) or legally  (at least in my state) wrong with charging for work that you preform. Agents can be paid by commission, salary, hourly, ect. As long as it is paid through and approved by their broker (AZ law).

    Actually I think for buyer's, a wage based compensation would be a better system than commission's. As it is now, the listing broker is paying the buyer's broker. Because negotiating a lower price for their buying clients lowers the commission, there is no incentive for the agent to do so. Also, the amount of commission offered by the listing broker could influence the properties that are shown or promoted to a buyer (not ethical, but it happens all the time).

    0Reply
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