Just starting out and reluctant and real estate agents are helping the cause.

[Shannon Fong]

Hello everyone,

Hope you are enjoying your Sunday afternoon.  This weekend was a fail trying to look at properties again.

I would like to purchase my first buy and hold by the end of April. 

I am looking in Baltimore.  I don't mind finding a property that may need a total rehab if the numbers are right. I plan on holding properties for a very long, long time. I plan on paying all cash for the purchase and rehab.

However,  two realtors so far seem not interested in showing me home in which I DON'T MIND the key is I DON'T MIND doing a rehab.  I am looking for properties on streets where there are other occupied properties and the house next to the one I am interested is adjacent to at least one other occupied property.

However, all they say to me is that property is a lot of work because it may need a complete rehabs.  Which, I am fine with it as long as the number match.

I have asked them are they use to selling these types of homes and are they comfortable and they both said yes.  However, I am not sure.  

Any advise?

PS: The guy, I saw today was like yeah our company has 1200 properties (which I ask if they could show me a few in my price range in prior emails which I was told would be okay ).  He kept telling us they are in really bad shape and I wouldn't want to see them.  Is he trying to sell these properties for his company or not? I don't get it.

[Nancy Roth]

@Shannon Frog

I'm delivering this comment from the perspective of a working realtor, and am NOT IN ANY WAY promoting myself to you as a realtor. You may however, look up many great investor-realtors at BP who know Baltimore very well, such as Tyrus Shivers, Anil Samuel and Christina Ramirez. 

So here's something to think about when you approach a realtor. A new buyer who needs a lot of coaching and handholding to buy that first $30K house to turn into a rental requires as much time and effort as (if not more than) an experienced and well-funded buyer who is looking for a house to rehab/resell. 

You see, in Baltimore the agent helping a buy and hold investor is working almost pro bono. What will the realtor earn on a $30K property? In the case of the brokerage with 1200 properties, the agents are probably working on putting together packages of several properties instead of selling one. 

So maybe this is what's tripping you up--the disparity between what you are asking for from the agent vs. what you have offered to pay for that service. Agents are in business, and they need to get paid, just like everyone else.

So maybe think through the nature of the business partnership you want. Start the relationship with a little respect. When you approach a realtor you want to work with you might say something like: "I know this represents next to no pay for you, and I want to be sure you are fairly compensated for your service. I will pay you the difference between the commission the seller will pay and a commission minimum we agree to. So you will get paid every time we close a deal together if the seller's commission is inadequate. What is the minimum commission that would work for you to support me through this process?"

That amount then gets written into your buyer-agency agreement. This is perfectly legit, but a lot of agents don't get taught to think about investors differently from how they think about owner-occupants. You may have to help them with it, i.e., show you can be a good partner to them.  

Good luck with your investing.

Nancy Roth