Home › Forums › General › EHTrust/EHT Topics and Creative Real Estate Financing › How do we make an offer to a realtor?
April 15, 2009 at 5:41 pm #29092
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.
They start as a person that needs to sell. They have the inventory because they market them. I understand what you are trying to do though. Yes. Scott does them as far as I know but they come to him by referral remember that. He is not chasing them.April 15, 2009 at 5:53 pm #29093
Right. I’m currently telling the agents on http://www.realtor.com that I want to submit a backup offer in case they’re unable to SELL conventionally within their 6 month exclusive listing. For the meantime, they can use my ads now to generate a waiting list of potential tenant/buyers if the owners decide to sell on a lease to own arrangement before the listing expiration. If the agent is smart enough to understand our business model, they don’t have to wait too long and market to both conventional and non conventional buyers.
So, what do you think of allowing the agents to use our ads and let them filter the calls and build their own buyers list? Some may think I’m creating my own competition, but I think of it as creating an alliance. They will definitely get more action and a bunch of questions that they cannot answer. We have to make sure they need us more than we need them. If they see that we don’t have any perceived value, then they won’t need us.April 15, 2009 at 5:56 pm #29094
NULLMemberareyes wrote:So, what do you think of allowing the agents to use our ads and let them filter the calls and build their own buyers list? Some may think I’m creating my own competition, but I think of it as creating an alliance. /quote]
Bad idea. The only thing agents are doing is looking for are houses to sell. Give them what they want but in a different way they have not been trained to do. Solve their problem of not selling the property.April 15, 2009 at 6:18 pm #29095
So, what do you think of allowing the agents to use our ads and let them filter the calls and build their own buyers list? Some may think I’m creating my own competition, but I think of it as creating an alliance. /quote]
Bad idea. The only thing agents are doing is looking for are houses to sell. Give them what they want but in a different way they have not been trained to do. Solve their problem of not selling the property.
I disagree. Agents will definitely get paid a commission based on our terms – not their terms. They’re trained to sell conventionally with new purchase loans or cash which is fine. But it’s NOT selling conventionally and they know it. Some will just take the listing even though they know it won’t sell because it severely overencumbered.
You can name all the different ways to sell properties conventionally and unconventionally and let the agent or owner decide what they want to do. If you really want to make them feel the pain, ask them why hasn’t this property been sold to a conventional buyer yet. Expect some of the objections to be:
“Buyers can’t qualify for a jumbo loan even though they have a good down”
“Buyer fell out of escrow because the lender changed their guideline. Although they had excellent credit and 10%-15% down”
“Lenders aren’t lending”
“Oh my client owes more than what the house is worth but it’s not behind. I’ve bumped up the asking price so that my commission can be paid off.”
“Oh my client is out of state and the property is vacant and they’re making a double mortgage payment. Also they owe more than what the house is worth”
Here’s a list and have them check off which methods they’re familiar with. You’ll notice they’re only familiar with the first three conventional strategies :
_x_ new purchase loan
_x_ all cash
___ loan assumption
___ seller financing
___ wrap around
___ all inclusive trust deed
___ lease option
___ lease purchase
___ lease to own
___ land contract
___ contract for deed
___ taking over subject to the existing mortgage (sub2)
I’m going to use this list and send this out to agents. I’ll tell these agents that they can add these non conventional strategies and sell it on a lease to own arrangement or some sort of owner financing that they’re familiar with or they’re willing to learn via EHT.April 16, 2009 at 3:07 am #29096
I am all with you. Once “You get in front of them” it will give you the momentum to get in front of more. The timing is right. The agents are looking and when you hook one in your back yard and start to work with them, the word will get out in a hurry.
I will have a couple of conversations tomorrow. I’ll let you know how it goes.
Maybe you can ask them if they have used any of the other methods on your checklist and how it worked out for them. Ask them what they know about each one, what they perceive as the pitfalls and why they don’t like to use them. Then give them the solution. Someone will listen. Ask them if they know who Rutgers University or Cres is. When they say yes, they know Cres, watch them shuffle in their seat. I talked with one Broker yesterday and that is what he did.
The key for me is face to face.
I’m going to use the checklist, if it is okay with you.
I like this path. Good info on the board, guys and gals. Let’s keep it rolling.April 16, 2009 at 3:10 am #29097
Use your benefits to risk chart.
Gee Bill. How long have you been telling us to use it?April 16, 2009 at 6:21 pm #29098
Whats Cres?April 16, 2009 at 6:31 pm #29099
Nevermind. I’m listening to the 3/28 call explain what Cres is.April 16, 2009 at 6:35 pm #29100
If Cres does approve this, then we can offer to pay for the insurance per transaction with each broker that can bring us properties.April 16, 2009 at 6:39 pm #29101
How much of a commission do agents normally get when doing a lease listing?
Commissions are TRULY negotiable.
I’ve seen everything from…
1. $100.00 (Listing agent will do all the paperwork, and simply give Buyers agent a “tip” for the “lead”).
2. Monthly Rent x 12mos x 6% = Commission
3. One Month’s Rent = Commission
4. Any other number out the clear blue sky parties can agree on.
The RULE is… there AIN’T NO RULE. Agents posture as if there is…
but I take it as sound and fury signifying nothing. Negotiate what you wish.
To me, since the triple net lease of property held in a land trust gives an rb the BUNDLE OF RIGHTS of homeownership, I expect no less that a FULL SALES COMMISSION (plus bonus for bein smart, smile).
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