Making offers without using an agent

15 Replies

Hello @Lonryco Robinson

If new to real estate I would recommend having an agent to help protect you. I would let your agent know that you are trying to create more offers to help you with the speed of the game so maybe they can create a quick template for you.

I would also recommend contacting several agents to help provide leads throughout different areas in where you are looking. These agents could also diversify your reach when it comes to different types of units, multifamily or single family.

Hope that helps and let me know if I can help in anyway!

Originally posted by @Lonryco Robinson :

Do I need to be licensed to make offers on properties that are listed or do I have to have an agent? 

 Neither.  You don't need to be licensed to offer on your own properties as the principal buyer.  You also don't HAVE to have an agent.

If you are new, you probably should have an agent. I would and did. But...nothing wrong with putting together a Letter of Intent (LOI) that outlines your basic terms of each offer and e-mailing the listing agent directly. When the LA gets back to you, bring your agent in to draft the formal PSA and run comps for you to make sure you're not over-paying.

If your agent doesn't have time for you, maybe get a new one.  My market is over-saturated with agents by about 80% or more.  10% of the agents are doing like 90% of the transactions.  Find someone new and hungry that will have time for you!

@Lonryco Robinson Why not have the listing agent be your agent? Are you going to low-ball all of them? Maybe that’s the reason your agent can’t keep up, you’re probably his highest volume offers with lowest chances of getting a deal done, in short he might be making $10/hr off of you while he makes $30/hr on his other clients. He only has limited number of hours a day.

@Sam Shueh & @Manolo D. I’m just getting started on my wholesale business. I don’t know if I’m over reaching but I want to make at least 5 offers a day. I typically go after reos ( I’ve done 2 last month) and I try to find properties in good areas. Usually offering $20,000 which is $1,200 for him and $2400 just last month. So why not put as many offers in as possible.

@Lonryco Robinson Hey, it is not necessary to have an agent. 

We use a LoI [Letter of Intent] to make offers and if the Seller is happy with our offer then we can move forward in the process. 

This works for us because it helps you make offers quicker. 

Hope this helps you, Goodluck. Thanks! - Ola 

Are you actually buying them, or trying to wholesale?
Also, a $20k sale is Not $1200 to your agent. His Office gets maybe $600 (listing office gets half), he gets maybe $450 if that with likely some other Transaction feed too, he has expenses....mls, realtor association, insurance, car, gas etc.
This is total loser for any decent agent.....I would have charged you at least a $2500 minimum for my office end.

And you Will have an agent no matter what, they must have an agent on both sides, even if it is the listing agent, though you may not get any actual representation this way.

Your agent isn't a good fit for you, cancel your contract in writing and either try again with another or in each offer tell them that you are not working with an agent and would like them to be your buyers agent, that way they have double commission so they are more inclined to make it work for you.

@Lonryco Robinson Because the rate of failure for you is much greater than the $1,200 reward. I’ll ask you this, if someone offers you to work every saturday at $30/hr for 8 hrs, and there is one who pays you $350 for 8 hrs on occasional saturdays meaning it is a hit and miss every saturday, which one will you pick?

I get it guys. I’m in the process of getting my real estate license as we speak. Hopefully problem solved. Now I can have access to the mls, interact with the banks and listing agents with credibility. And make as many offers as I please without wasting anyone’s time.

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