How Do I build solid relationships with realtors?

Question

Hi everyone! Some advice please. I am a real estate wholesaler and I am seeking advice on how do I approach Realtors to help me find properties. Say, I already have my criteria and target market what are some questions I can ask to build solid relationships with realtors to find motivated seller leads. I understand this topic is wide, but any bit of advice would really help.

I'm wondering how should I contact realtors, should I call them or email them. And how do I kick off the conversation so that they will help me find properties.

Also, if a realtor does find a property, how does he/she make a profit. Do they get a percentage of my profits or does the realtor get percentage of what the house is sold for?

Much Thanks!!!!

Janelle Dye · Answer

I would email them during your property searches, letting them know what you are looking for. Then follow up by way of a phone call, introducing yourself. Of course keep a list of who you've contacted. I am new to wholesaling as well and this has worked for me so far.

Hope this helps!

-Janelle, Maryland

Hope this helps!

-Janelle, Maryland

Jeffery Goode · Answer

@Juan Oropeza

as a real estate salesperson/broker and investor for 15 years, I want to make one thing clear. ALL Agents/Salespersons are there to make money. Developing a relationship with them is MOST important. If a broker/agent has a property on the MLS system or has an exclusive on a piece of property then we are getting paid at closing. However, we are in it for money. Many wholesalers that develop a relationship with me share a percentage of the sales price or a flat fee with me. I make money on the listing side, sell side, and a small percentage from you the wholesaler. If we have an exclusive listed on the property or it is on the MLS then we would use our own P&S agreement and do all the particulars through the closing. If it is a "pocket listing" and there is no agreement in place then I would need to know that you are going to pay me a good percentage on the deal. It is up to you to talk to each salesperson/broker that you want to develop a relationship with. Talk to them. If you pay me on time, bring me your needs first and give me the opportunity to fulfill them then in the future I will call you as soon as I receive information on a piece of property that I think might interest you. Find a few good realtors and develop that relationship.

Mark Douglas · Answer

@Juan Oropeza  I'd call a few that specialize in the types of deals you're doing, and take them out to lunch (on different days of course haha)  Just let them know who you are, what you're doing, what your criteria is, and let them know you'd like to help them grow their business, and it will help grow yours as well.

A lot of agents will have "pocket listings" - properties that aren't on the market yet, but they're aware that the owner is willing to sell.  A good way to find out about these unlisted properties (besides direct mail, or knocking on every door in L.A.) is through their associated agent.

Hope this helps.

Jeffery Goode · Answer

@Juan Oropeza

Sometimes we only make money from the wholesaler side as the seller is doing a FSBO or they aren't paying commission. Sometimes we make money from the seller side only, sometimes all sides. It just depends on the property all together based on the seller and the RE salesperson relationship. As a wholesaler you either have to become knowledgable and friendly with the banks that do REO or you have to get to know every seller or you make relationships with the salesperson. You make money off the information that you get from your contacts so you give back to them for that information. The more your relationship grows the more they send you their business and properties first. Salespersons are in it just like investors and that is to make money. Salespersons have expenses just like investors so they have to make money. We are all in it to make money. Share the wealth and they will always think of you first.

May Kleider · Answer

Juan, my advice is just to explain them that you are new investor in the area and going to be there for several years and you want to build long work realtionship. Tell them your needs and if you close a deal just pay them more (advantage for next opportunity). My biggest advice is just to be honest with them. Speak with several agents until you will find 2-3 that you like to work with.

May.

Juan Oropeza · Answer

@Janelle Dye Really Great advice!

If you don't mind me asking, what has worked for you when introducing yourself to a realtor.? In other words, what do you tell them on the initial phone call after the follow up email. Of course maybe not word-for-word haha but more of an outline of the things you want them to know about what you and how you can work together.

Much appreciated. :)

Juan Oropeza · Answer

@Mark Douglas this makes perfect sense. I'll make sure to not take them out to lunch at the same time. Haha

The reason I ask is because I'm actually having lunch with a good friend of mine who is a top realtor in his brokerage and this helps a lot for tomorrow's meet. Thanks!

Now as far as me being a wholesaler, let say he starts to send me properties that match my specific location and criteria and I'm sure most of these will be already listed on the MLS,

My question is, how do I go about making the offer to the seller, does the realtor make the offer on my behalf or does he send me the sellers contact information and I make the call myself?

Sorry, one last question, if my cash offer is accepted by the seller which contract will be used? My P&S agreement or the realtor who has the property listed on the MLS.

Hope this makes sense. Haha. Btw, I'm new to bigger pockets so this means a great deal.

Super Thanks !

How Do I build solid relationships with realtors?

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