real estate agents?

Question

I was contacted by a real estate agent who says she specializes in finding fixer uppers for her clients.  She says that she helps her clients find the property, helps with estimating costs and resale value, and she also has a team of subs she works with who I can hire to do the work.  She then guarantees that my property will sell within 30 days, in other words she finds a buyer for the property.  So...basically she does everything??  I am meeting with her next week.

This sounds too good to be true.  However, I am very new at this, and I walked away from my first potential property over the weekend - not enough knowledge about costs and resale value for that particular property, even after studying comps for that neighborhood.

Doing my homework, but would welcome thoughts.

Dolores Waldron · Answer

Hi @Stacey Steele - I am also looking at something similar in my neck of the woods - Medford, MA and was contacted by someone who offers similar but they have not brought me anything as of yet - I wonder if it's the same person - feel free to PM me.  Let us know how it goes.

Charlie MacPherson · Answer

I work in this market every day (Plymouth, Bristol, Norfolk, Suffolk counties).  I work with a lot of rehabbers and root out good properties for them.  I might even know the person you're talking about.

Make sure you know what she means by "guarantee" and "sell".

What if you "sell" in 31 days? What happens with that guarantee?  Do you get a cash rebate?  Something else?

Do you have to list it at her price for the guarantee to be effective - or at 60% of retail value?

Does "sell" mean an accepted offer?  A signed P&S?  Sitting at the closing table?

These things always sound good if you say them fast, but with even strong, pre-approved buyers taking 45-60 days to close, I'd be very suspicious.

I make no such guarantees, because it's simply not possible to guarantee what other people will do.

But I do work hard to find rehab prospects not on and off market.  I run comps and when possible, visit the property and provide a video walk through for my flippers.

Patrick Wheeler · Answer

What I typically see from other investors, specifically developers that I know is that they will usually provide the listings to the same agent on the back end once the property is rehabbed and ready to sell. If agents are smart they will ask for that instead since they can earn more operating that way.

If someone is going to hand you a deal (not you personally), they should be rewarded in some way right? I'm going to feel obligated to reward someone in some way who brings me a deal at some point.

Zoltan Fagyal · Answer

It sounds good overall but I agree with @Patrick Wheeler: I'd find out how she can guarantee that the house sells in 30 days.

Patrick Wheeler · Answer

@Stacey Steele This may very well be the case, although personally I don't think I would guarantee the sale within 30 days, unless she has a lot buyer clients ready to go. I don't see any reason not to give her a try, but do NOT rely solely on her estimate, comps, etc. Have an experienced flipper go over everything as well. If this agent follows through and the investor helping you out verifies all her work, then I see no reason why this can't be a huge benefit.

Helping buy and hold investors find deals is the primary reason I got my license. There are a few of us agents out there that understand investing!

Chris Noonan · Answer

this sounds somewhat like a wholesaler. I do not know much about that area besides from what I have read in books and heard on the BP podcast. You should look into this though

Stacey Steele · Answer

Thanks, Michael.  Yes, I was thinking she will want a fee, or like some of the mentors I've talked to, want a percentage of the deal...not sure but I'll find out next week.  And she's got lots of knowledge about financing, flipping vs. holding, etc...as she's been doing this for 30 years she said.

Michael Totman · Answer

I'd hire my own subs but would get quotes from hers just to test them out. If she has a pipeline to these off market deals and wants to help you buy, why not? I'm wondering when she will ask you for her finders fee though...This could just be a niche she markets herself as filling. It's worth investigating at least.