Investor · Dallas, TX · Member since 2014 · 142 posts · 44 votes
My husband has many many teams of door knockers selling Energy in multiple states, so I know it works and I know it can be done with tremendous success.
What I do not know is, what would be the best compensation. If I am trying to get them to schedule an appointment with a MOTIVATED seller, what would be the best compensation?
Should I try and train them in the acquisition, or just how to get the appointment?
If anyone has done this, knows someone doing it or is doing it. I would love to hear from you and what you have to say!
As I pointed out a year ago, the same issue still applies, if B is then an employee, paid in some manner and you have withholding, workman's comp, then B represents the company, if they are on a commission and not an employee, they become an independent contractor, B needs a license, and you said to make offers, that is talking price, talking about purchase terms or attempting to facilitate any sale requires a license!
A paid employee may act on behalf of the company and most likely will not need a license, you'll need to how all the requirements for a paid employee, commission only might cut it f you're meeting all the other requirements for an employee.
Again, anytime someone on here mentions "Agent" or "Broker" or "license" the assumption goes straight to real estate agency........that is not correct entirely, the formation of agency relationships is formed by law, has little to do with a real estate agent, you can be an agent to buy a car, truck load of shoes, trees or lumber, just about anything and the "Laws of Agency" apply to these relationships.
If you have a formal written partnership with A and B then you may skate past the license matter as both are buying, they must close together, then B may sell their interest to A and walk off. However, doing this over and over again will then show most likely that your partnership is a sham for the purpose of circumventing agency and licensing laws, once or twice, okay, as a business model, no.
Folks need to learn about business before trying to go into the real estate business! If you don't fully understand Laws of Agency then you can't conduct yourself properly to avoid such relationships. Pay close attention to "consent" "implied and specific" as well as the legal aspects of the duties owing to a principal by any agent. If you're not the guy actually buying, most likely you're an agent! :)
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
10y
Not sure real estate is that easy of a pitch, they will reflect on you as well, so what do they know about real estate?
Next, licensing for door to door solicitations, I bet you have that covered.
Now, real estate license issues, how you pay can make a difference. Might consider a letter addressed to you with questions. They cannot appear to be representing you as a buyer. $100 per appointment? Set appointment standards. If they begin talking about real estate or prices or condition or specifics, they can get into a licensing issue.
You'd need to be more specific, what their job would entail and what services they would provide for you.
Not sure about a pitch from energy sales to RE, I don't think I'd mix the two, perception may fall off the professional side and I wouldn't want some bait and switch type thing.....LOL, like wanna sell your house? Well, can I interest you in some electrical power contracts......well, how about a set of fine cutlery.......I mean it begins to sound like Mr Hainey on Green Acres! Know what I mean ? :)
Investor · Dallas, TX · Member since 2014 · 142 posts · 44 votes
10y
Lol, yes I was not meaning pitch energy and then ask to buy a home. I was simply saying that my husband knows the door to door world in and out and very successful doing so. I was thinking of implementing the training knowledge of sales and door to door experience he has to use for the RE side of things. Thanks @Craig H.@Bill Gulley @Account Closed
As for the numbers, I can not say. They would not reflect the numbers in the Energy sales it's a whole different game.
Investor · Plano, TX · Member since 2014 · 188 posts · 149 votes
10y
@Jamie Wooley, I bought my first investment property in a new territory through MLS. Once I saw the rental potential in the neighborhood, I took my three kids and door knocked the entire street in one afternoon, introducing myself and what I did as an investor and as a unofficial steward of the community. I was able to pick up 2 properties after knocking on 50 doors. Not bad odds for 4 hours of work. Then I tried it at 2 other neighborhoods, zilch responses!
Upon some hindsight, I think I was just plain lucky with the first neighborhood. I have since tweaked my approach and I call potential homeowners by phone. I can work my persuasive skills just as well through phone conversations than walking the neighborhood. I picked up 1 additional property through this method.
Further hindsight, Making phone calls is still hard work. I think I could use a cheaper method to reach people; so why not direct mail? Wait a minute! I think people do this already. So my lesson learned is direct mail may be a proven method and may not need reinvention of the wheel here.
I'm getting ready for a larger direct mail campaign for certain zip codes of interest.
My personal opinion on door knocking for selling energy vs. buying homes, the latter requires better targeting. Finding the right homes with more equity, longer home ownership, right timing to move. Once you approach the right house, I'm sure, you can work your persuasive magic face-to-face and do an instant assessment of the home right there.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
10y
Jamie, you can teach people whatever you like, the issue is the relationship between you and your sales force, are you a licensee? Is there any agency relationship (by law) established between the sales force and you or with the customer? Are the sales folks employees or members of a business entity as owners so they aren't employees?
Long ago a sales manager told me he could train a monkey to sell, I told him yes, they taught a monkey to fly a spacecraft too. There is nothing wrong with knocking on doors, it's the relationships and what is said or even implied that becomes a regulated issue. :)
Investor · Dallas, TX · Member since 2014 · 142 posts · 44 votes
10y
@Mike Makkarthank you for your response. I have decided to just stay on track with my direct mail and try a few other channels as well. I am going to hold off on the door knocking for now. Plano? I'm in Wylie, your my neighbor. We should connect sometime.
@Bill GulleyYou make a very good point. Thank you!
Real Estate Investor · Raleigh, NC · Member since 2012 · 427 posts · 297 votes
9y
@Bill Gulley "They cannot appear to be representing you as a buyer. $100 per appointment? Set appointment standards. If they begin talking about real estate or prices or condition or specifics, they can get into a licensing issue."
If they work for her company why is there a problem? If her company buys houses and they are employees of the company, then would that be OK? In that instance, I would imagine the legal situation is "Company A buys houses, door knocker B is working for Company A, therefore door knocker B is acting as Company A when he/she makes the offer."
To be clear: I am looking at this as she wants to buy the houses for herself as an investor and is not trying to get listings as a broker. If it is the latter I have no clue what the rules are, but if she wants to actually BUY the houses, then I cannot see how hiring someone to go door to door to make offers on her company's behalf is a problem.
As I pointed out a year ago, the same issue still applies, if B is then an employee, paid in some manner and you have withholding, workman's comp, then B represents the company, if they are on a commission and not an employee, they become an independent contractor, B needs a license, and you said to make offers, that is talking price, talking about purchase terms or attempting to facilitate any sale requires a license!
A paid employee may act on behalf of the company and most likely will not need a license, you'll need to how all the requirements for a paid employee, commission only might cut it f you're meeting all the other requirements for an employee.
Again, anytime someone on here mentions "Agent" or "Broker" or "license" the assumption goes straight to real estate agency........that is not correct entirely, the formation of agency relationships is formed by law, has little to do with a real estate agent, you can be an agent to buy a car, truck load of shoes, trees or lumber, just about anything and the "Laws of Agency" apply to these relationships.
If you have a formal written partnership with A and B then you may skate past the license matter as both are buying, they must close together, then B may sell their interest to A and walk off. However, doing this over and over again will then show most likely that your partnership is a sham for the purpose of circumventing agency and licensing laws, once or twice, okay, as a business model, no.
Folks need to learn about business before trying to go into the real estate business! If you don't fully understand Laws of Agency then you can't conduct yourself properly to avoid such relationships. Pay close attention to "consent" "implied and specific" as well as the legal aspects of the duties owing to a principal by any agent. If you're not the guy actually buying, most likely you're an agent! :)