Flippers: What's the most value agents can bring?
Real Estate Agent · Philadelphia, PA · Member since 2017 · 35 posts · 16 votes
Quick survey for Flippers.
I'm an investor and an agent licensed in Delaware, Pennsylvania focused on working with Flippers. I'm honing my agent side to serve flippers better by creating value. So I wanted to get a quick survey and inputs on things you would want.
Most of the flippers have their own ways of getting their own deals, and need us for listing. From buying the house to selling. I'm thinking one of the best value add is to provide a list of connections.
List of contractors that show up to HD/Lows at 6am in each location listing (specialty, pricing, licensed, vehicles, references, what my flippers said about them at his last point of contact)
Asset base loans connections, lawyers.
Could also do MLS auto emails for properties they are looking for if needed.
What else would you want to help your business?
PS. Already read agent's guide and is incorporated into my business.
For me, the practical value of an agent is running around and doing all the busy work for me. I also get referrals from them so I don't mind paying a certain amount to an agent even if I can technically do everything that they do. Also having a good relationship with agents can sometimes bring quasi-off-market deals to you. In those cases, you should always reward the agent for bringing the deal.
For out-of-town flippers, agents can be a good contact person for local professionals/talent. This is an extremely valuable benefit that all professionals should bring to their clients.
Also, some of the more sophisticated flippers do SFR flips more as a BRRRR (rent out initially, then sell later) than a traditional flip. In those cases, you can offer some property management and tenant location services.
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it as legal advice. Always consult with your attorney before you rely on the above information.
For me, the practical value of an agent is running around and doing all the busy work for me. I also get referrals from them so I don't mind paying a certain amount to an agent even if I can technically do everything that they do. Also having a good relationship with agents can sometimes bring quasi-off-market deals to you. In those cases, you should always reward the agent for bringing the deal.
For out-of-town flippers, agents can be a good contact person for local professionals/talent. This is an extremely valuable benefit that all professionals should bring to their clients.
Also, some of the more sophisticated flippers do SFR flips more as a BRRRR (rent out initially, then sell later) than a traditional flip. In those cases, you can offer some property management and tenant location services.
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it as legal advice. Always consult with your attorney before you rely on the above information.
Thanks Chris for the input. I'm curious, are you talking about the work in terms of buying the house?
If so, all of my focus and structure is set in place to help the flippers list their house and get it out of the market. There are things I could do to help them get to the process. But, I can add the most value by being on the selling side.
So if the flipper bought the house from (auction, wholesaler, etc) Then if they need any of my connections I could help them and use my infrastructure to eventually list the flip.
We are set for speed, right pricing, and creating demand on the listing side. So great fit for flippers, not so much for others.
Adding Contractors to contact that are verified for my clients to use would be a good value add. Looking for any other value adds I can bring to flippers.
If you have any suggestions or questions, please feel free to contact me or respond below.
Regards,
David
Sorry, I meant more like gathering all utility bills, getting existing tenants to sign estoppel certificates, and otherwise running around doing all the due diligence for the closing process (whether it's on the sale end or the buying end). This may sound silly, but I have in my mind what my hourly "worth" is. So if it is less than that, I try to outsource these tasks to someone (including realtors) so I can work on other tasks.
Some other thoughts:
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it as legal advice. Always consult with your attorney before you rely on the above information.
Chris,
I think there is still some disconnect on what I do.
In the last 3 months in New Castle county and Kent County in Delaware there was about 300 cash transactions worth on average 175k. In Chester and Delaware county about 500. In Philadelphia about 1400 cash transactions.
That's a lot of investors, not including sheriff sales.
A lot of the transaction are REO deals and auction sites that are assigned by the asset managers from the bank and asset companies. They usually go 90-95 cents on the dollar.
For the rest of the transaction which are 70 % or below, it's serviced by a lot of different agents servicing alot of different people.
I noticed the market, and decided to have our team set up to have the infrastructure in place to meet flippers needs after they purchase from wholesalers, auctions, etc to when they list.
So our core focus is below.
1) Priced right (Getting the best price the market can offer)
2) Fast selling (holding costs)
3) Execution( Staging, Photography, Contractors if needed during the flip, asset loans, marketing, etc)
Also in Delaware its an attorney state, so the chemistry has to be in place other wise deals can blow up if the team is not glued.
Our problems are different from the traditional realtors, as I believe in specializing in one type of client to meet their needs more efficiently.
If we miss other opportunities by not servicing others, I'm happy about that, because that means we stayed disciplined and sharpen our edge.
FB marketing ads would be under our marketing plan, but thats a slice of what's we do. If you have any other suggestions on how we can help Flippers make more money, or take away their stress. Please feel free to comment.
Regards,
David
One thing to looking into is using Virtual Assistance. This is a great way to delegate tasks and outsource work to save time and energy for more financially rewarding tasks. There are systems that works perfect whether you are into rehabbing or wholesaling.
Wouldn't the Flipper want to deal with their own VA, instead of my own?