Can't Get Momentum With Boots on the Ground OOS..Suggestions?

[Jeff Petsche]

Hello BP Community. I'm looking for some advise/suggestions regarding building the relationships/teams with boots on the ground in OOS markets.

I'm a real estate Broker here in Southern California and investing in my own backyard is just not an option for me at this time. I still run my retail business here, but it's not the best area for buy-hold/cash flow. Just too expensive.

I am part of several referral groups on Facebook and have success making the initial contact with many other agents in various markets, but then that is where it seems to stall. The initial conversations go great, I provide my buy-hold criteria to the agents, I let them know I have $200K in capital to invest with and then NOTHING happens.

My partner and I are ready to pull the trigger and get our first few deals under our belt, but I'm not getting the deals put in front of me to analyze at this point. I'm doing my own searching online, but when I call to get more information about the property, the rental market, etc. it's dying on the vine.  

I've also been given some resent referrals for local banks and hard money lenders in the markets I'm looking, so I have my financing set up, and are you ready for this, over the past week NOBODY has returned my phone calls. Yes, NOBODY!

I'm staying positive and I keep getting on the phones because I know somebody will want my business, but was hoping others here could share their experiences when they were building teams OOS.

I'm not even opposed to getting on a plane to visit the markets, set up some meetings and hunt for some properties while in town because real estate is my 100% focus. 

Suggestions?  

[James Wise]

Originally posted by @Jeff Petsche:

@James Wise Thanks for the comment and in NO WAY did I come across in the manner in which you described. Because we all work for the same umbrella company (Keller Williams Realty), the conversations were very professional and respectful in every way.

I think it's the latter of your comment. I think these agents are either talking themselves out of the fact that there are deals out there to be made, you just have to look under a lot of rocks to find them. I know some have given into the fact that the areas are saturated and too competitive to have a chance at the numbers we are trying to hit, or they just don't have the experience working with OOS buyers who are not paying retail prices.

I know a few of the agents refused to write low offers because they were worried about insulting the seller/listing agent and damaging their reputation. I respect it, but they are just not the fit for me and my partner.

 Jeff with all due respect it sounds as though you came across exactly as I described in my original comment.

"too competitive to have a chance at the numbers we are trying to hit"

Translation; we want to pay less than what everyone else is paying for the same product.

"buyers who are not paying retail prices."

Translation; we want to pay less than what everyone else is paying for the same product.

"I know a few of the agents refused to write low offers because they were worried about insulting the seller/listing agent and damaging their reputation. I respect it, but they are just not the fit for me and my partner."

Translation; we want to pay less than what everyone else is paying for the same product.

If not one, but several agents are not calling you back I think it's time to identify what the common denominator is here.  Agents like to make money. You are an agent, who clearly likes to make money. As a fellow agent would you really be excited to work with someone who wants to buy the same product as everyone else, only he needs to get it for a cheaper price? I sure wouldn't.

Imagine a family comes into your office telling you that they need to move into a 4 bed home in a certain school district. You explain to them that in said school district 4 bed homes comp at $400k. They explain to you that if you can get them one for $320k not only will they buy it they will refer you to their friend who also wants to buy one of these $400k homes for $320k....Sounds pretty ridiculous doesn't it? Would you jump to work with them and anxiously wait for the referral of their friend? Or would you show them the door & work with the family who is ready, willing and able to pay $400k? I think the answer is clear.

When we talk about the family and the school district it seems so clear and obvious that they would make for a bad client. However when "investors" talk to out of state Realtors about "investment" properties exactly this way, investors don't seem to fathom the idea that they too could be a bad client.