Real Estate Investor · Tallahassee, FL · Member since 2010 · 14 posts · 0 votes
Can some seasoned investors or anyone else tell me how can you use a realtor to bring you leads when you are starting off as a new investor with no real estate credibility? Thank you.
To get Realtors to bring you leads for Short Sales, you MUST create a system that they are comfortable with being apart of and also the system must allow them to make money. Now, talk to a few realtors and tell them your ENTIRE plan. Then, if they are interested, get ONE(1) property from them. Perform your entire process with that one(1) property. Once everything closes, sit and ask if they: 1) are now willing to send you more properties that fit that plan. 2) are now able to fully understand how both of you will profit from this process, 3) can offer any suggestions that "might" make the process move more smoothly.
What do you mean by "bring you leads"? What are you trying to do? The main way to generate credibility is to show you have the ability to buy. Cash in the bank or a combination of cash and pre-approved financing.
I agree with Jon. The best way to build credibility is to show them you can do what you say you can do. Close with them.
I also don't think Realtors are the best option in short sales. You really have to have good, investor friendly realtors that know short sales well to work with you...
As a Realtor and CRS working with investors and seasoned investor myself, I can see the table from both sides of this question. I specialize in working with investor clients interested in rehab and buy/hold residential real estate. You need to have a realtor who specializes in this area of expertise. He will have the tools to educate you and the connections to bring you good investments and find you lenders willing to lend on these types of property. You will then have to step up to the plate and take a swing. Real Estate Investing is a numbers game mixed with a business plan, once you are comfortable with the numbers, and you stick to your plan, it's not rocket science. Call me if you would like a referral of a good CRS in you area.
Can some seasoned investors or anyone else tell me how can you use a realtor to bring you leads when you are starting off as a new investor with no real estate credibility? Thank you.
Ask yourself, what's in it for them? Because that is what they will be asking themselves the from the first second they begin speaking to you. They are trying to determine "your angle".
Your profile has you as a short sale negotiator so I would assume you want the Realtor to bring you their deals?
So help us help you by giving us some idea of what you bring to the table, if you are not certain then that is OK, we need to know that also.
If you are pitching a Realtor on why they should send you their deals to negotiate, you will want to sell them on your ability to perform. Your track record, resume etc. If you are lean in these areas then you will want to start digging up your own leads to build a track record and resume. In that case we can help you dig up leads.
It really depends on what barriers you are encountering. If you let us know that, then maybe we can help you move forward.
Hey Jon when I say bring me their leads I mean for a realtor who knows that a borrower is in default of their loan, they will let me make an offer on the property and negotiate the short sale myself then buy and resale quickly.
To get Realtors to bring you leads for Short Sales, you MUST create a system that they are comfortable with being apart of and also the system must allow them to make money. Now, talk to a few realtors and tell them your ENTIRE plan. Then, if they are interested, get ONE(1) property from them. Perform your entire process with that one(1) property. Once everything closes, sit and ask if they: 1) are now willing to send you more properties that fit that plan. 2) are now able to fully understand how both of you will profit from this process, 3) can offer any suggestions that "might" make the process move more smoothly.
Good comment by Crosswind for you here. Many may be adverse to the concept, but it is a numbers game. Have the plan well laid out. You only need a handful of active short sale agents initially to be successful. Once you complete a few ask them for referrals.
JCC yes I want the realtors to bring me deals. I am working on several files now but no closings yet. Its hard for me to show a track record when I am in the process of building one. That is why I posted this question. How can you provide me with leads?
It sounds like you want to wholesale (buy and resell quickly) properties. Your best bet is not to try to have realtors do the leg work for you. Do your own marketing to find leads. Get the notice of default leads from your county. Get 30-60-90 day late lists from credit bureaus. Get bankruptcy lists from public records. Drive around and find vacant houses. Then knock on doors, make calls, send letters, etc. to generate leads.
Frankly if you approach a realtor and say "send me your short sale leads, I'll make a low ball offer, then resell it for a profit", 90% or more are going to completely blow you off, not understanding what you're doing. Of the ones who are left, a few will understand what you're doing, but ask, "why should I?" Unless you have a long list of ready buyers, they are doing the same thing themselves. Its just that for the agents, the fee they collect is called a commission rather than an assignment or wholesaling fee. But the concept, putting a buyer and a seller together and collecting a fee, is almost identical to wholesaling. If you try enough different agents, maybe you will find one who will work with you.
But the real angle here is to go out and find your own deals.