Quick question for out of state investors who work with realtors

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Quick question for out of state investors who work with realtors

Matt Littlepage
Modesto, CA · Member since 2018 · 10 posts · 4 votes

Hi Everyone,

I currently own properties here in California and I have recently been looking for investment multi-family properties in North East Ohio. I am new to out of state investing but not new to real estate. I have already been pre-approved and have over $100K in the bank to use as my down payment money. I am finding and analyzing properties on my own. I have already worked with two realtors there in NE Ohio and to be honest, I am very disappointed. 

I basically call them up and ask if they can put in an offer for me. I have missed a few properties because of slow offers (24-36 hours after asking them to make them). I completely understand everyone is busy and are not waiting by the phone for me to call. I get it... At the same time, I feel that I am an easy client. I have done all the hard work on my own. I ask simple questions and get the answers a day or so later. 

Am I expecting too much? Is this just how it goes in that part of the country or have I found two realtors that are either too busy or don't care about my investing. I hope this doesn't come out as a poor me story but I am just trying to get a grasp on realtor mentalities there. 

How would you go about finding a realtor interested in helping an out of state investor? I interviewed both and both had the right answers on the phone but when it came time to act they fell short.


Thanks for your time,

Matt

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Most Popular Reply

Brian Garlington
Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
5y

Matt,

I'm in the Bay Area like you..............and realized we are spoiled here in the Bay Area. We are used to quick responses,......but in the midwest it is a slower pace. My worst experience was when I flew out to Cleveland the first time.....looked at properties with an agent.....and on Saturday I told him to write up an offer on a property. He didn't get it over to me to sign until Tuesday night. When he did send it over it wasn't even an E-Sign or DocuSign......I was out having dinner with friends and literally had to go to a Kinkos, print out a bunch of pages.....sign them......and then re-scan them back to him. Needless to say we didn't get the deal and I certainly did not do business with them. The kicker is when he said, "Brian, you don't know how it is out here, it's different than the Bay Area." I told him, "No, you are a non-responsive agent that gives Realtors a bad name. I was born in Columbus and fly back to Ohio every couple of years to visit family so I know what is slow and what is bad. You are both."   The conversation went downhill from there :-) 

As another poster said, I would ask any prospective Realtor do they own investment properties in the area and ask them to tell me about their last couple of investment properties they bought in the area. Don't fall for the one who says, "I work with investors all the time." They ALL say that even if they just passed the exam that morning. As a Realtor here in the Bay Area since 2004 if I ever took 3 hours, let alone 3 days to write up an offer the client would walk and I would not blame them. 

If you want I am more than happy to get you the names of a couple of Realtors in Cleveland that own investment properties in Cleveland and have had great success at working with folks from the Bay Area.

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  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    5y

    One statement, and 1 question:

    Statement:  You are 100% correct with your complaints and expectations regarding the REA that work FOR YOU.

    Question:  What questions did you ask them to qualify them?  I have 4.  Maybe the problem starts because you are asking the wrong questions.

    3Reply
  • Matt Littlepage
    OP
    Modesto, CA · Member since 2018 · 10 posts · 4 votes
    5y

    Hi Joe,

    I ask prospective agents if they are investors in real estate. I ask about their experience and how many sales they had last year. I make sure that they know that I am 2,200 miles away and may have to tour homes without me. I ask how long have they had their license and how long they have lived in the area. What are their strengths and drawbacks? Do they have lenders, contractors and property managers they recommend? 


    Basically we agree that they will not get paid until I close. I tell them I will do everything possible to close and ask if they will do what it takes to get me there... Both agents promised the world and basically fell flat.

    What would you recommend I ask?

    Thanks for your time,

    Matt

    0Reply
  • Bonnie LowPro Member
    Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    Have you already established a relationship with a Realtor or are you reaching out to someone you have no relationship with and asking them to make offers? We always start by building the relationship. Schedule a phone call and discuss your experience, your goals and ask about their experience working with out of state investors. Establish your credibility. They get a lot of tire kickers. If you find a Realtor you like, ask them to set up a MLS search for you based on your criteria then give them feedback on opportunities they send your way. If you're looking at Cleveland I recommend @Chris Parsons. Good luck to you!

    [email protected]
    0Reply
  • Matt Littlepage
    OP
    Modesto, CA · Member since 2018 · 10 posts · 4 votes
    5y

    Hi Bonnie,

    Thanks for the lead. This is my frustration! Yes, I feel I have done everything possible except for getting on a jet and flying out to Cleveland. I did the phone interview which I felt went well both times. We would email and text back and forth and they would always say they would get right on with whatever the task is we were/are concentrating on accomplishing and then I feel no action would be done on their part. Again, I know people are busy and I guess I am just wondering if people investing from afar take a back seat to local investors? 

    Thanks,

    Matt

    0Reply
  • Brian Garlington
    Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    Matt,

    I'm in the Bay Area like you..............and realized we are spoiled here in the Bay Area. We are used to quick responses,......but in the midwest it is a slower pace. My worst experience was when I flew out to Cleveland the first time.....looked at properties with an agent.....and on Saturday I told him to write up an offer on a property. He didn't get it over to me to sign until Tuesday night. When he did send it over it wasn't even an E-Sign or DocuSign......I was out having dinner with friends and literally had to go to a Kinkos, print out a bunch of pages.....sign them......and then re-scan them back to him. Needless to say we didn't get the deal and I certainly did not do business with them. The kicker is when he said, "Brian, you don't know how it is out here, it's different than the Bay Area." I told him, "No, you are a non-responsive agent that gives Realtors a bad name. I was born in Columbus and fly back to Ohio every couple of years to visit family so I know what is slow and what is bad. You are both."   The conversation went downhill from there :-) 

    As another poster said, I would ask any prospective Realtor do they own investment properties in the area and ask them to tell me about their last couple of investment properties they bought in the area. Don't fall for the one who says, "I work with investors all the time." They ALL say that even if they just passed the exam that morning. As a Realtor here in the Bay Area since 2004 if I ever took 3 hours, let alone 3 days to write up an offer the client would walk and I would not blame them. 

    If you want I am more than happy to get you the names of a couple of Realtors in Cleveland that own investment properties in Cleveland and have had great success at working with folks from the Bay Area.

    4Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    5y
    Originally posted by @Matt Littlepage:

    Hi Everyone,

    I currently own properties here in California and I have recently been looking for investment multi-family properties in North East Ohio. I am new to out of state investing but not new to real estate. I have already been pre-approved and have over $100K in the bank to use as my down payment money. I am finding and analyzing properties on my own. I have already worked with two realtors there in NE Ohio and to be honest, I am very disappointed. 

    I basically call them up and ask if they can put in an offer for me. I have missed a few properties because of slow offers (24-36 hours after asking them to make them). I completely understand everyone is busy and are not waiting by the phone for me to call. I get it... At the same time, I feel that I am an easy client. I have done all the hard work on my own. I ask simple questions and get the answers a day or so later. 

    Am I expecting too much? Is this just how it goes in that part of the country or have I found two realtors that are either too busy or don't care about my investing. I hope this doesn't come out as a poor me story but I am just trying to get a grasp on realtor mentalities there. 

    How would you go about finding a realtor interested in helping an out of state investor? I interviewed both and both had the right answers on the phone but when it came time to act they fell short.


    Thanks for your time,

    Matt

     There is an annual turnover rate of about 90% in this biz...Looks like you're experiencing why 1st hand.

    1Reply
  • Raul Velazquez Jr
    Columbus, OH · Member since 2018 · 91 posts · 54 votes
    5y

    @Matt Littlepage I've had similar experiences in Columbus. I asked about a property and was told later the agent wasn't in the office to get the message. The funny thing is I sent the message to his cell phone.

    0Reply
  • Lydia S.
    Real Estate Agent · Albuquerque, NM · Member since 2015 · 542 posts · 193 votes
    5y

    @Matt Littlepage

    Wow, that’s pretty shocking that they’re taking so long.  Is there anything delaying writing an offer such as waiting for your Lender letter or proof of funds?  
    Are your offer prices reasonable?  

    Did you call them to discuss offer details like the amount of earnest money, who’s paying which closing costs, appraisal, inspection timelines, closing date and so forth, or just email them?

    Maybe you tried using someone who’s too busy rather than someone who’s hungry for a transaction.

    0Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    5y

    It seems like you did the leg work to build the relationship there which should have netted you better service, but a couple questions which may or may not explain the reluctance or slowness:

    1. Since I know you didn't see these in person, did you do a virtual tour with the agent first? Why? First, it puts the agent on notice of your high interest and right on the call you could start getting the offer prepped. Also, where I am, we have a sight-unseen waiver that needs to be signed and sellers are not interested in selling to sight unseen because they fall apart much more of the time.

    2. When you talked to them, did you explain how you like to offer and what your process is? If they don't know an offer is coming and you haven't even mentioned the property, a good agent will need to do due diligence for you (looking at agent notes, checking flood zones, checking past sale or listing history) before just writing up an offer even if you are experienced.

    Hope that helps.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Jonathan Greene:

    It seems like you did the leg work to build the relationship there which should have netted you better service, but a couple questions which may or may not explain the reluctance or slowness:

    1. Since I know you didn't see these in person, did you do a virtual tour with the agent first? Why? First, it puts the agent on notice of your high interest and right on the call you could start getting the offer prepped. Also, where I am, we have a sight-unseen waiver that needs to be signed and sellers are not interested in selling to sight unseen because they fall apart much more of the time.

    2. When you talked to them, did you explain how you like to offer and what your process is? If they don't know an offer is coming and you haven't even mentioned the property, a good agent will need to do due diligence for you (looking at agent notes, checking flood zones, checking past sale or listing history) before just writing up an offer even if you are experienced.

    Hope that helps

    I wonder if his e mails are requesting super low ball offers.. this could be a reason .. 

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    3Reply
  • Jessie Kristie
    Member since 2021 · 61 posts · 36 votes
    5y

    @Matt Littlepage I agree with @Bonnie Low that you’d want to establish relationship with your agents. Before I flew out to meet my agents and PM in person, I felt that they weren’t taking me seriously. After closing on our first deal, there’s more trust and confidence in both parties.

    For simple questions being answered within 24h, I’d not sweat it, although I would follow up. For contracts though, I’d set the expectations that I’d like it done by when and follow up. If they still don’t perform, I’d mention it and look for someone else to work with.

    As far as what questions to ask before you hire them, I think that’s tricky. People can tell you what you want to hear and still don’t perform. I’d ask for referrals. Good luck!

    0Reply
  • Jason Cacioppo
    Real Estate Agent · Commerce CIty, CO · Member since 2018 · 127 posts · 78 votes
    5y

    The realtors you spoke to may assume you aren't serious. Are you asking them to "find you a deal" and saying you "wont pay above list price"? Or are you sincerely telling them you're ready to write an offer?  I would keep trying as opposed to getting discouraged. 

    0Reply
  • Matt Littlepage
    OP
    Modesto, CA · Member since 2018 · 10 posts · 4 votes
    5y

    Brian, I think you nailed it. The culture and lifestyle is just a slower pace and that is not a bad thing.... I wish it was slower here. Jay I am not making low-ball offers. I believe the lowest offer I made was 10% below asking.

    My sister-in-law bought a home here 5 years ago and was shown almost 80 properties before she finally closed. It was not all her fault with multiple offers, inspection contingencies and having to offer above asking price but that poor realtor really earned her money at the end. I see things like this and find it hard that the realtor in Ohio is going to make the same commission when I find the properties myself online, I am fully financed and I have zero emotion in the deal. I don't care if the carpet is blue, if the numbers work I want to buy it..... You don't have to waist time driving me around and laughing at my dumb jokes.

    0Reply
  • Dennis Maynard
    Real Estate Broker · Los Angeles, CA · Member since 2018 · 307 posts · 146 votes
    5y

    Ask for a referral from your realtors here.  Many times they have relationships or can source someone for you there.

    0Reply
  • Kevin Gregg
    Real Estate Agent · Waukesha, WI · Member since 2016 · 48 posts · 13 votes
    5y

    Hi @Matt Littlepage Sorry to hear you are having trouble in Ohio. Perhaps you should look at the Milwaukee market and the surrounding areas. I invest/live here and am an agent for a property management firm that manages 3,000 units in this area. We are very investor friendly and understand what is needed to be successful and help you build your empire. Most of our clients are out of state like yourself. Please feel free to reach out if you have any questions. 

    2Reply
  • Dennis Maynard
    Real Estate Broker · Los Angeles, CA · Member since 2018 · 307 posts · 146 votes
    5y

    I just saw an agent in Toledo OH on another post.  His name is Stephen Brown.  Should be searchable on BP.

    1Reply
  • Mike Mocek
    Property Manager / Licensed Realtor · Toledo/Columbus, OH · Member since 2019 · 244 posts · 262 votes
    5y

    Hello @Matt Littlepage I just sent you a message :) 

    0Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    5y

    I invest in Ohio from out of state and that is totally unacceptable. You have simply gotten into contact with lame agents. Find better agents. 

    0Reply
  • Rick Albert
    Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    You are right in your expectations. As a Realtor who has worked with out of area clients, here are my thoughts:

    1. What kind of offers are you making?  Lowball where there is a 0% chance of getting it or something else.

    2. I always prioritize offers, especially when the price and terms are already established.  The only time I might wait until the morning is because if I have to do more analysis and want to do it with fresh eyes.  Even then, it would be done first thing in the morning.  Even if I'm in meetings all day when I get home/office I write up offers and send it out.  A Realtor can't get paid until the deal closes and it all starts with an offer.

    3. When you are interviewing agents, ask open ended questions so they are not just "yes" people.

    0Reply
  • David A.
    Rental Property Investor · Los Angeles · Member since 2019 · 157 posts · 175 votes
    5y

    If you are finding these properties yourself and ready to make offers why aren’t you reaching out to the listing agent to represent both you and seller, if that’s allowed by their broker / DRE. Doubling their commission should increase the incentive for them. Even if they are still slow on both ends of the transaction it shouldn’t really impact your ability to get the offer accepted. 

    1Reply
  • Michael Stange
    Rental Property Investor · Woodinville, WA · Member since 2017 · 23 posts · 33 votes
    5y

    @Matt Littlepage

    Very few agents know anything about real estate investing.

    Try something kind this.

    46 properties available in OH.

    https://www.roofstock.com/investment-property-marketplace

    0Reply
  • Aaron Gaffney
    Investor · Santa Barbara, CA · Member since 2016 · 75 posts · 35 votes
    5y

    @Matt Littlepage realtors tend to be less than optimal avenues to find good deals… Although I have found a few here and there, search for ones that are explicitly “investor friendly“, or even here on bigger pockets forums!

    I am doing deals in Ohio and Indiana and Kentucky, considering a couple in Arkansas. If you’re interested in joining venturing let’s chat.

    0Reply
  • Aaron Gaffney
    Investor · Santa Barbara, CA · Member since 2016 · 75 posts · 35 votes
    5y

    @Matt Littlepage also, at some point you probably will want to hop on a jet and fly out to Cleveland, or whatever markets you are investing in… Numbers and information can tell you a lot, but there’s nothing to replace boots on the ground. I like to spend a week or two driving a city that I’m considering, just talking to people, meeting other investors when possible, getting a feel for the place and for all the different neighborhoods. You might find screaming deals here and there, but if the whore area is falling apart it can be a bad deal in the end, even if the numbers look fantastic on paper! This is true in a lot of the Rust Belt cities.

    1Reply
  • Aaron Gaffney
    Investor · Santa Barbara, CA · Member since 2016 · 75 posts · 35 votes
    5y

    @Brian Garlington speak the TRUTH!! 🥳✌🏼👏🏻🙌🏻💯💯

    0Reply
  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    5y
    Originally posted by @Matt Littlepage:

    Hi Joe,

    I ask prospective agents if they are investors in real estate. I ask about their experience and how many sales they had last year. I make sure that they know that I am 2,200 miles away and may have to tour homes without me. I ask how long have they had their license and how long they have lived in the area. What are their strengths and drawbacks? Do they have lenders, contractors and property managers they recommend? 


    Basically we agree that they will not get paid until I close. I tell them I will do everything possible to close and ask if they will do what it takes to get me there... Both agents promised the world and basically fell flat.

    What would you recommend I ask?

    Thanks for your time,

    Matt

    Your first question regarding their experience as REI is a good one. The rest have nothing to do with REI. They are great if you were a homeowner, nut REI an buying your own home have very little in common to begin with...and are light years different as far as what you are looking for in a REA/ Her are my 4 questions:

    1 - Will they present every offer I make?  Let me add here I'm not talking about ridiculously low offers.  I don't lowball.
    2 - Have they done HUD offers, and how many. HUD offers are very involved and are all done online.
    3 - Do they represent any REI now, how many, and how many deals have they closed for REI as buyers and/or sellers? Ok this is more than one question, but it's all part of the same group, and should be asked as one question.
    ...and the big one,...
    4 - Will they present my offers without me seeing the property (in person)?  I only inspect my accepted offers.

    If any of the above questions gets a "no" answer, I won't work with them...even if all three of the other questions gets an excellent "yes".

    Let me also add that if the REA expects me to have an exclusive agreement with them, that won't happen...unless they also agree to have one with me, meaning they won't represent any other clients either. 

    1Reply
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