Real Estate Investor · Flushing, NY · Member since 2010 · 77 posts · 20 votes
BP Community:
I wanted ask all of the short sale investors what do you look for in a realtor when considering doing business with them? At what point do you determine "next" and move onto the next agent?
I know that not all realtors are open minded enough to realize the value in working with an short sale investor.
So am I better off working with motivated realtors that have just started in the business instead of trying to convince the experienced veterans who are still trying to sell listings at full retail price?
Real Estate Agent · Bellflower, CA · Member since 2010 · 25 posts · 3 votes
16y
I'd say you're better off going with an agent that isn't going to be too busy for you because shortsales in general are a big headache. There's a lot of back and forth going on between the lender and the listing agent, then between the listing agent and the buying agent. I may just be biased against short sales because I'm still waiting for approval on a property that we submitted for short sale back in October!
Many realtors are hesitant to work with shortsales when representing the buyer because they usually take forever to close, and they're worried that their buyer will not hang in there for that long of a time. But this may not be the case if the buyer such as yourself is an investor and doesn't mind the wait.
Real Estate Investor · Ocala, FL · Member since 2008 · 742 posts · 463 votes
16y
David,
When talking or interviewing a potential Realtor, make sure that the Realtor fully understand your process.
I have a few clients that have a checklist that they give each Realtor to sign. This gives written evidence that the Realtor was informed of the Investors process.
Specialist · MA · Member since 2009 · 858 posts · 306 votes
16y
I pretty much tell them that investors want to buy at the lowest price and sell at the highest, so they know that when the BPO gets done, I'm looking for it to come in NICE and LOW!!
I had a Realtor tell me last week short sales should only be done by investors, and that the way I did it was the best way so as not to waste anyone's time. (yep my head got big)
If they start questioning everything and then keep bringing up "legal" they are a NEXT for me.
Real Estate Investor · Alger, OH · Member since 2009 · 37 posts · 28 votes
16y
If they begin to drag their feet and become very hesitant, it's time to say goodbye. I thought I had a great one about 6 weeks ago that went on and on about getting tons of leads, she was more than happy to give up the negotiations and then decided 2 weeks ago that she wanted to handle the contract every time a new offer was submitted. That's not the way it works and unfortunately she was not willing to budge on it.
The good thing is that she had given me a referral to another agent/investor that I had a 3 way call with today. The 3rd party on the call was my negotiator. There's no doubt that call answered most any of his questions or concerns. I hadn't set a call up with the previous realtor and I know now that was a big mistake on my part.
For the most part you'll know from your first conversation if it's even worth your time. Many won't consider giving up the negotiations, are worried about giving up the sellers info, or just think they are God's gift to the short sale world. They feel that their track record of successfully closing 20% of their short sales is deserving of a medal or something. What about the 80% that went into foreclosure because the short sale was handled incorrectly?
Do keep in mind that if they are fairly new or eager for business they will be more than happy to talk to you. Most like the fact that they can get paid twice and don't have to handle the negotiations.
I would suggest making the call, if they sound interested then set up a call with your negotiator so that you can cover the process and expectations. It will be laid out for them and they will pretty much decide at that point whether to proceed or to continue to do it the hard way. That 3 way call is key as it provides clarity, guidelines, and opportunity. It should be clear afterwards whether they are onboard or not, and if not, you haven't wasted weeks and lost a couple deals on someone that you hoped was going to perform.
Real Estate Investor · Flushing, NY · Member since 2010 · 77 posts · 20 votes
16y
Hi Kyle:
Thank you for the good advice. I definitely agree that if the realtor isn't open minded to working with a short sale investor then it's better to just move on.
Real Estate Investor · Ocala, FL · Member since 2008 · 742 posts · 463 votes
16y
Kyle,
That is one of the BEST ways to make sure everyone is on board. It also, in a very short time, will allow everyone to get out all questions and doubts.
Glad things are working out for you. Keep posting your success for the BP Nation. This will assist other new Investors in understanding the processes.
Centennial, CO · Member since 2009 · 758 posts · 251 votes
16y
Good post Kyle. Maybe we could suggest a badge or award -bronze for 20% success, silver for 30%, and gold for an amazing 40% success rate. We could do the same for professional negotiators, but start the levels at maybe 60%. :mrgreen:
Real Estate Investor · Indianapolis, IN · Member since 2009 · 161 posts · 46 votes
16y
Nick thanks again for the power point... It was very detailed and gave me some great ideas for marketing. My power point was, lets say, lacking compared to yours... VOTE 2U!
P.S. I thought maybe I should contribute something to the original post...
I'll give you an example of what I look for. My latest Realtor, hired 3 guys to go door to door with leads he provides them. He "gets" Fed/Ex envelopes and has them deliver them with his direct mail campaign in them... He says people always open them, and the three guys set appointments for the next day to close the deal!! Talk about a hustler...
The flip side is I just "passed" on an agent who just stared at me, as though I had an arm growing out of my forehead! That’s when I say NEXT!
Real Estate Investor · Alger, OH · Member since 2009 · 37 posts · 28 votes
16y
Ted,
I think that's a great idea!
I actually talked to a gal just last week about a short sale listing she had. I explained everything to her and she said it sounded good, but she's not up for giving up the negotiations since she has been successfully closing 18-20% of her listings. That's where that number came from in my earlier post. I certainly thought it was time for her to simplify and change things up a bit, but she just apologized that she couldn't help me and hung up.
I know that Nick Johnson had posted awhile back that it usually takes 5-6 calls to find one that really gets it, in my experience, those numbers are dead on.
Wholesaler · Belleville, IL · Member since 2009 · 206 posts · 44 votes
16y
Nick - I'd very much appreciate a copy of your realtor materials. I'm in the process of recruiting right now. been making 5 calls per day for the last week. so far have 5 willing to work with me
Real Estate Investor · Fremont, CA · Member since 2010 · 68 posts · 19 votes
16y
Originally posted by Dave Grosse:
Nick - I'd very much appreciate a copy of your realtor materials. I'm in the process of recruiting right now. been making 5 calls per day for the last week. so far have 5 willing to work with me
Real Estate Investor · Craigmont, ID · Member since 2009 · 564 posts · 239 votes
16y
I talked with a realtor yesterday who said he had no problem representing the seller as well as representing me as seller for B-C as well as letting me hire out the negotiations
The part I didn't get was that he said he has been able to close 100% of his short sale listings with exception of a couple when BOA went to the equator system. Can anybody do 100%? I guess you could if you were extremely picky about what listings you took. Oh well, he is a gung-ho salesman so he should be good to list with.
Real Estate Investor · Fremont, CA · Member since 2010 · 68 posts · 19 votes
16y
Originally posted by Vincent Martinez:
I'd say you're better off going with an agent that isn't going to be too busy for you because shortsales in general are a big headache. There's a lot of back and forth going on between the lender and the listing agent, then between the listing agent and the buying agent. I may just be biased against short sales because I'm still waiting for approval on a property that we submitted for short sale back in October!
Many realtors are hesitant to work with shortsales when representing the buyer because they usually take forever to close, and they're worried that their buyer will not hang in there for that long of a time. But this may not be the case if the buyer such as yourself is an investor and doesn't mind the wait.
Wholesaler · Belleville, IL · Member since 2009 · 206 posts · 44 votes
16y
Kenneth - All I can say is that I just lay the plan out for them and let them decide. Totally upfront and honest. I never try to convince anyone - if they don't get it or come up with reasons why there could be trouble etc, then I end the conversation so as to get on to the next one.
And for the OP: I only consider realtors who are advertising themselves and their listings. This way I know they are willing to spend to get listings and to sell them.
Real Estate Investor · Fremont, CA · Member since 2010 · 68 posts · 19 votes
16y
Hi did anyone ever get what Nick Reuter offered? Nick stated: I've got some realtor marketing material I can hand out if interested. A powerpoint presentation and some other things.
If so I'd appreciate a copy.
Centennial, CO · Member since 2009 · 758 posts · 251 votes
16y
Thanks Kyle,
The amazing thing is that she is proud of the 18-20% shorts she gets closed. That is why you have to have control of the negotiation, and either feel very comfortable yourself or outsource to professional negotiators.
Real Estate Investor · Fremont, CA · Member since 2010 · 68 posts · 19 votes
16y
OK everyone Nick sent me the PowerPoint show. SO anyone that doesn't have a copy and wants one I can forward it to you. I don't think Nick will mind.
All so did anyone think on "Is it legal to offer a share of the profits to your Real Estate Agent involved in a Short Sale?".
Why would an investor do this?
1) I'm not greedy there's plenty of $$$ around in a short sale
2) It will incentivize an RE Agent to work with you in addition to all the other benefits they get (i.e. full commissions when available, no negotiating, no package to create, give you back time to do what you do best "sell homes")
Most banks only allow 2 to 2.5 percent commission on a short sale. Suppose you market a short sale at $100K. You expected profit $30K. The Listing RE Agent only gets at most $2,500 (I mean the Broker). The REA gets at most half of that $1,250.00. What if you could offer them 3 times that much $3,750.00 + $1,250.00 or $5K a full 5% What are the odds that the number of RE Agents you work with would increase?
Hey Kenneth can you also send Nick's powerpoint to [REMOVED] Also I would like to take your offer from your "Currently Seeking" info under your Profile. Thanks