Working with a realtor or not

8 Replies

I'm just starting out. I've been doing some property locating for other investors, but was thinking about wholesaling. I was wondering what are the advantages/disadvantages in working with a realtor or not. I've approached working with a particular realtor who is an investor also, so they know how to spot a deal. However, they want me to sign a 6 month exclusivity contract with them. Is this standard? I don't want to lose out on deals if they can find them for me, but I don't want to be taken advantage of either.

Please help!!!

The best deals are found without using a realtor. They may occasionally come across something but the majority of good deals are found through other methods. I can’t imagine why you would even consider an exclusive contract, they are just trying to lock you up so that they get a piece of your action. Don’t do it.

8)

The only contract i'll be signing is the one from me to the seller.And the only time i would work with them is if they find me a deal worth pursuing.Also if they ever try to tie me up with a 6 month contract i would probably laugh in there face. I strongly agree with Rehab702 don't do it. :protest: :protest: :protest: :protest: :protest: :protest:

Regards,
Jorge

:superman: "Natural Born Go Getter" :superman:

Whats wrong with signing an EBA? Just make sure that it is for listed properties only and not any that you find that are not on the MLS. The realtor wants to make sure that you are going to work with him if he is going to work with you. There is nothing worse than showing someone 40-50 houses and then having them tell you that they bought a property that they saw and called the listing agent on. Kind of makes you want to ask them to pay for your time, value of the education, and gas money that you expended.
Until you have found a couple of properties and purchased them with this realtor expect this. Using an EBA is becoming more common especially with people new to the industry that you have to do a lot of work with.

Originally posted by "halln27":
So how do you get paid as a Realtor specializing in foreclosures??

My question was how do people find foreclosures that are AVAILABLE for purchase with out a realtor. Yes, anybody can sign up with realtytrac.com or foreclosure.com and see thousands of foreclosures and pre-foreclosures, but trying to buy one of those is nearly impossible.

I have dedicated the past 3 years working with banks and asset management companies to help market and sell their REO's. I have a senior partner who has over 200 listings at any given time from Fannie May, Wells Fargo, and Countrywide.

We are absolutely swampt with REO's in Illinois in should stay extremely busy for the next 4-5 years.

When I started off in this business I was not a Realtor. I became a Realtor to open up more opportunities for investment properties. Now, in a course of any given month I will easily see over 50 foreclosured properties. Part of my job is to do a BPO(broker price opinion) and evaluate the home.

My point is, that how do people who do this part time find great deals with out dedicating some serious time and effort. Also, how do people evaluate these properties to ensure that they are making a profitable investment.

Running comps and evaluating deals takes a legit professional who eats, breathes, and lives this game every day. If you have been successful with out using a Realtor then I would like to know how you do it. I am always looking for more strategies to increase my inventory of profitable deals.

Please don't take this as a bash to unlicensed real estate investors. I am just confused on how some people with out the experience, resources, and the tools that some Realtors have are able to find profitable deals.

Please share how you find your deals.

For others, find a Realtor like myself in your area and see what they can give you. Never sign anything with them locking yourself into using them. That is a sign of a weak realtor. If you live in Illinois, please feel free to drop me a line.

There are many ways to find profitable deals without a realtor.

Place "I buy houses" signs
Direct mail
Place Classified ad in newspaper
Craigslist
Call on ads in newspaper in for sale section
Drive around looking for vacant homes, find owner, ask if he wants to sell
Place flyers
Place business cards everywhere you go
Networking
Offer $500 for whoever gives you a lead where you buy the house
Ask a probate or divorce lawyer for leads
etc.