INSANE Ninja Tactic for the Fattest Assignment Checks!

19 Replies

Silly little change in my business increased my 3/Month Trailing Average Assignment 37.6%!!!

Here is the Bottom Line:

The Highest paying Cash Buyers are buying through Real Estate Agents! Whether they are Rehabbers, Landlords, Residential DIY’ers or Retail End Buyer’s most Cash Buyers are overwhelmingly calling agents first for a “Good Deal”. Most times a “Good Deal” translates into “Below Retail!” Do the math – Agents are a gold mine!

You work so hard perfecting your “Deal Finder” skills at the front of the process, are you doing all you can to flip those houses for as much as you can on the back end of the deal?

If you don’t have 100’s of agents on your Cash Buyer list you are seriously missing out!

Rookies say your money is made when you sell.

Experienced Wholesalers say your money is made when you buy.

Business Owner’s leverage the entire transaction.

Here’s the process:

  • 1.Buy an e-mail list of the real estate agents in your county.
  • 2.Send them e-mail
  • 3.Do Not use your main e-mail address to send this first e-mail. Create a few test e-mail accounts and send out this first e-mail in batches of 100. This will prevent your main e-mail from getting flagged as a spam address.
  • 4.Tell them who you are and what you do
  • 5.Ask them if they would like to be on your Cash Buyer List
  • 6.Let them know they are Always Paid on the HUD and they can Determine Their Own Commissions!
  • 7.Only when they respond “yes” add them to your main Cash Buyer List.

How do you pay them? ALWAYS on the HUD!

How do you market to them? Simply add the following sentence (besides the price) with your e-mail blast to your Cash Buyers:

(Agents add your commission on top…)

To Great Real Estate Adventures,

Tom Krol

Hey Tom,

This is a great strategy that I'm also starting to implement in my business. I'm networking with different Realtors in my market to bring in cash buyers for my deals. 

I will definitely be pulling an email list to reach out to other agents. In the past I've also just offered a 6% commission on closing of the transaction to my agents which has resulted in them being more motivated to get their buyers interested. 

Originally posted by @Andre St.George:

Hey Tom,

This is a great strategy that I'm also starting to implement in my business. I'm networking with different Realtors in my market to bring in cash buyers for my deals. 

I will definitely be pulling an email list to reach out to other agents. In the past I've also just offered a 6% commission on closing of the transaction to my agents which has resulted in them being more motivated to get their buyers interested. 

 Love it!

Account Closed I believe you which is why I'm on the move to become a licensee. This is not a bad idea at all.

Kudos,

Mary

Account Closed 

Nice job...

Most boards actually have that email list available for their agents. So you may not have to buy it...

The only thing I would add is grab a various Realtor Magazines and News Paper Classifieds. Make a list all of the agents advertising. (They always advertise for Buyers) Create your list of the power agents who have a down line of Selling agents attached to them.

Listing agents are working their listings for buyers so your lists is going to uncover the Big Listing Agents... The nice thing about listing agents is that they all have Seller Agents.

Who pays the buyer's agent? I got caught off guard once and paid him out of assignment fee. Next time I show them a deal Im going to say buyer has to pay his guy.

What is customary?

@Russell Ponce  

I would assume under an assignment, the end buyer (cash buyer/investor) would pay the closing cost based off the first contract with the seller. Any correct me if I am wrong.

Originally posted by @Russell Ponce:

Who pays the buyer's agent? I got caught off guard once and paid him out of assignment fee. Next time I show them a deal Im going to say buyer has to pay his guy.

What is customary?

 Jose is right - As a wholesaler you always want the buyer to pay 100% of all closing costs. Be sure to have your agents explain this before their buyers send in their non-refundable deposit.

Tom

Ok. I never thought of agent's commission as closing costs, we negotiated commissions and closing costs seperately.

I dont mind paying the agent if he's helping me with a hard to sell property but if im just handing them a deal to spread the wealth they will have to divvy up their cut on their own.

@Russell Ponce  Here is something that a wholesaler I get notifications from puts at the bottom of her emails.

ATTENTION: Realtors and Wholesale Investors
Please add your commission or fee to the asking price of $89,500.00

Dumb question...

After the agents add their fee or commission to the wholesale price, how does the title company know to pay the agent that fee or commission?

Is there a document that's written and signed prior to closing?

Not a dumb question...

If wholesale then it would be assignment agreement. This is the paper that gets the assignment fee paid to you. Im not sure about the Realtor side. 

That's what I was wondering. For an assignment fee, there'd be an assignment contract that specifies the fee. But for a real estate agent adding their fee on top of the wholesale price...what document would specify their fee? 

It would probably be a separate agreement between the agent and the holder of the right to assign. Most agents have a commission agreement form for when they are acting as a buyer's agent on a for sale by owner type situation. Its always been my understanding in Oregon we cannot have commission negotiation be part of a real estate contract. As a buyer's agent our commissions are negotiated thru our MLS system with the listing agent or directly with the seller. I think it would be by separate agreement between the person assigning the contract and the agent - that way it wouldn't show up on the end buyer's HUD which is what I think you are trying to avoid? Love this thread. What a great idea.

I'm an agent, and I have a bunch of investor buyers looking for a good deal.  They would happily pay my commission on the buy side if I connected them to a good buy.  If there are and Raleigh wholesalers, please put me on your list!  :)

I think I understand now. 

Example:

House under contract for $100,000.

Your assignment fee is $10,000.

Agent fee is $5000.

1. You tell agent the net price to you is $110,000 and to add his fee on top of that.

2. Agent finds cash buyer to purchase house at $115,000.

3. Prior to closing, agent submits to you a commission statement that specifies $5000 as his commission.

4. You pass this on to the title company.

5. Title company adds this to the HUD so a check is cut for the agent at closing.

Great idea! I am all over that one, one REO realtor can help finds me a deal and another realtor can sell it for me off my list!

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