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How do we make an offer to a realtor?

Home Forums General EHTrust/EHT Topics and Creative Real Estate Financing How do we make an offer to a realtor?

This topic contains 23 replies, has 0 voices, and was last updated by Avatar of rick rick 11 years, 4 months ago.

Viewing 15 posts - 1 through 15 (of 25 total)
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  • #5583
    Avatar of rick
    rick
    Participant

    What would be the proper procedure to make an offer to a Realtor?

    1. Purchase agreement with an attachment ?
    (Cover letter & Terms of the agreement)

    2. $1,000 earnest money deposit?

    Do you set up your title company before you make the offer?

    #29078
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @Rick wrote:

    What would be the proper procedure to make an offer to a Realtor?

    1. Purchase agreement with an attachment ?
    (Cover letter & Terms of the agreement)

    2. $1,000 earnest money deposit?

    Do you set up your title company before you make the offer?

    Don’t over do this thing. You do nothing different with a Realtor than you do with a Seller. When you call them you say the same thing and gather the same info.

    “Mr/Ms. Realtor, let me tell you what I’m looking for. I’m looking for someone, who for a Full Price Offer, would be willing to………..”

    If they want to see an offer just ask the remaining questions that you will need to put together your proposal. Now just send the offer and set a follow up phone appointment to discuss your proposal. That’s It!

    Once they agree to our proposal then and only then “may” it be necessary to use any State Authorized Purchase Contracts. All you need to do there is the same thing a Realtor would do with any other type of Seller Assisted Financing Arrangements and attach the Proposal and NEO.

    K.I.S.S.

    #29079
    Avatar of rick
    rick
    Participant

    I have a buyer that wants to make an offer on some houses until we get him into one because he needs the tax benefits.

    I’d like to call the agent up tell them what I’m looking for. Then ask if they would consider our offer, and if they will, send them the terms of the proposal first, followed by a call to explain the terms.

    When we come to an agreement, we send them the appendix 1 and they attach it to their own purchase agreement. ( the real estate agent directions are right on the cover letter of the appendix 1)

    I don’t see why the NEO would be needed because the terms spell out that I have a beneficial interest and I can assign someone to lease the property on a triple net. I am a party to the transaction making a direct offer to the seller. I think it gives me better control.

    Am I missing anything here?

    Thank you,

    #29080
    Avatar of homesavers
    NULL
    Member

    You are playing a game of Chess here. The rules are plain set by the DRE and others. Go ahead and make the offer to the Listing agent and have them do the paperwork. Then turn your ship around and point your guns at them and see what they do.

    #29081
    Avatar of rick
    rick
    Participant

    Do you think if I contact 20 agents I would get 1 thinking agent?

    What about 52 brokers?

    Maybe I should have the RB give me their top 52 houses. Make the calls and leave a message if they don’t answer.

    8-16 hours of work to get 1 yes. What do you think, Don?

    #29082
    Avatar of kevinscott
    Kevin Scott
    Member

    Rick, if you can get access to the MLS in your desired area, simply look for properties that are selling where the agent indicated FOR SALE OR LEASE. Many times, the agent will indicate how much seller will lease for. That let’s you know the amount seller is looking for. If you’re buyer is already planning to pay more, great!

    OR if you don’t have MLS access… there’s the quick, easy script to the agent:

    1) Hi! Is the 3 bedroom on Main St. still available?
    2) How many offers do you have on it?
    3) Will your seller take a lease now, buy later OR buy on payments?

    If NO… thankyouverymuch. Next.
    If YES… Great… I’ll send you my offer. What’s your fax number.

    That call takes less than 1 or 2 minutes.
    If the agent asks questions… just say… “It’ll be in my offer. What else do you want me to address?”

    Good luck.

    #29083
    Avatar of rick
    rick
    Participant

    Excellent Kevin,

    I will do exactly that. Great script.

    I’ll start firing them off tomorrow and let you know how it goes.

    Thanks,

    #29084
    Avatar of homesavers
    NULL
    Member

    @Rick wrote:

    Do you think if I contact 20 agents I would get 1 thinking agent?

    What about 52 brokers?

    Maybe I should have the RB give me their top 52 houses. Make the calls and leave a message if they don’t answer.

    8-16 hours of work to get 1 yes. What do you think, Don?

    All you can do is try. There are some on this board that have done this including myself and it has either worked or not worked for them. I am finding the more offers you have out there the scarier it gets. Why? Because you may develop a reputation with these agents that you cannot perform. So you have to be careful and produce an RB Buyer like they are expecting you to do. First one to bring a buyer wins.

    #29085
    Avatar of areyes
    areyes
    Member

    Kevin,

    How much of a commission do agents normally get when doing a lease listing?

    Isn’t it just 1 month only?

    #29086
    Avatar of areyes
    areyes
    Member

    There’s no “trying.”

    It’s either you DO or you DON’T.

    :wink:

    #29087
    Avatar of homesavers
    NULL
    Member

    @areyes wrote:

    There’s no “trying.”

    It’s either you DO or you DON’T.

    :wink:

    Right, you either DO or you DON’T bring a Buyer.

    #29088
    Avatar of areyes
    areyes
    Member

    Majority of the time we wouldn’t have the exact qualified RB NOW to do the EHT when making offers to these agents.

    The terms of proposal will always be the initial documentation to explain our intent. After the broker reviews it and allows us to market for our own RB, which document is the one that allows us to market the property to secure our own RB after the fact that it’s currently listed.

    Is it the NEO?
    Is it the Appendix 1?
    Is it the NEO and Appendix 1?

    Do they have to cancel or withdraw their exclusive listing? Probably not.

    #29089
    Avatar of homesavers
    NULL
    Member

    @areyes wrote:

    …After the broker reviews it and allows us to market for our own RB, which document is the one that allows us to market the property to secure our own RB after the fact that it’s currently listed.

    I do not think you need anything from the Broker to market the property they are already marketing the property. I say get them without Realtor involvement. Why are we even marketing to listed properties? The listing agent marketed and sold that Seller on listing the property and then we come in. Too late. Do what the Realtor did. Sign them with you then go find the Realtor to list it. First in First out.

    My opinion is DO NOT deal with listed properties unless of course the agent asks you for help. Anybody think different?

    #29090
    Avatar of areyes
    areyes
    Member

    @homesavers wrote:

    @areyes wrote:
    …After the broker reviews it and allows us to market for our own RB, which document is the one that allows us to market the property to secure our own RB after the fact that it’s currently listed.

    I do not think you need anything from the Broker to market the property they are already marketing the property. I say get them without Realtor involvement. Why are we even marketing to listed properties? The listing agent marketed and sold that Seller on listing the property and then we come in. Too late. Do what the Realtor did. Sign them with you then go find the Realtor to list it. First in First out.

    My opinion is DO NOT deal with listed properties unless of course the agent asks you for help. Anybody think different?

    The reason why I’m marketing for listings and the agents is because they have the inventory. The FSBO’s are limited and these potential RB’s that I have are getting pickier and strict with their criteria. The beggars are becoming the choosers. So why not let them go on http://www.realtor.com, let them pick out any MLS listing they want, I make the offer and terms as a “principal,” they cancel or withdraw the listing for us to proceed with escrow and trust initiation, and agent gets paid. Isn’t this how Scott does it when a title rep or agent calls them on a failed transaction.

    Right now, I’m emailing a bunch of agents on http://www.realtor.com without a qualified RB at hand and I want to leverage their listing by using terms. One idea was to let the agent use my ads that has their phone number tied to it so they can filter the calls and have me close the transaction as an IB in the deal. Sure the agent will get the pool of RB’s using my ads on their dime, but they don’t know, what they don’t know. They will need me to negotiate and explain the terms and to make sure I get paid as a principal in the deal.

    She/He who has the inventory can control the market better. Agent’s aren’t cutting it unless the property is listed as a short sale or REO. This isn’t our competition since we’re buying and selling on terms. There’s a lot more prettier houses on the MLS than FSBO’s. I will continue to market for FSBO’s but I just need to get over this hurdle to control MLS listings creatively with the participation and understanding of the broker.

    #29091
    Avatar of areyes
    areyes
    Member

    Bill has that saying something like “do what people are unwilling to do and get paid for a lifetime what i’m willing to do”

    Someone please correct me on that quote.

    You may think it doesn’t work, but I’m looking to make it work. Sure I’m going to get bruised along the way with the conventional thinkers, so what? Some will, some won’t, someone’s waiting. Next? Rule #4 right?

    It’s weird that I’ve been coming across more creative agents lately as opposed to 3 years ago. Some agents are opening up to creative financing now. The pain is getting worse for them. They may not do business with me now, but I will definitely make sure they remember me since I can offer something better than others. I’m farming the agents and planting my seeds. The offers I’m sending them isn’t the best offer right now, but it’s waiting for them as a last resort.

Viewing 15 posts - 1 through 15 (of 25 total)

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