Incentivizing Realtors to Bring Deals

[Steven Tawresey]

Hey Everyone. So I recently moved to the Seattle area (actually Bainbridge Island on the Kitsap Peninsula) and I'm looking for deals. There isn't much on the market currently and everything that is active either goes quickly over ask, or is overpriced and stale and sits for months on end. Very few properties are priced correctly in my opinion. However, the place I'm living is essentially a retirement community and I feel there is a large number of unkempt properties ripe for flipping coming down the pipeline. 

Anyways, since I'm new to the area and haven't connected with my go to agent yet, I'm brainstorming ideas of how to incentivize real estate agents to bring me off market deals (there aren't many wholesalers here). One way, of course, would be to offer commissions on both sides of the deal. Standard seller paid commission when you bring me the deal (maybe I can offer an extra %), and standard or elevated commission when you sell the property. If the numbers work out and I start landing deals, I don't mind paying more to lock it down. Thoughts on this strategy?

Any other ideas on how to incentivize multiple agents to bring you deals?

[Nathan Harden]

Steven, 

Welcome to the PNW!

There are wholesalers out here but yes, you are correct, there aren't as many here as in other parts of the country. That being said, the Wholesale fee is usually greater in our neck of the woods because of the housing costs. It's lot easier to charge a fee of $50k+ for our type of priced properties over here. Just keep that in mind that after the major assignment fees, closing costs, etc. The off market deals may have a smaller purchase price initially but after an expensive wholesaler, sometimes it will actually save you money to buy an on market because you can get closing costs paid for right now, no wholesale fees and no commissions to be paid since the seller takes care of that. 

What type of investment properties are you looking for?

[Don Konipol]

Quote from @Steven Tawresey:

Hey Everyone. So I recently moved to the Seattle area (actually Bainbridge Island on the Kitsap Peninsula) and I'm looking for deals. There isn't much on the market currently and everything that is active either goes quickly over ask, or is overpriced and stale and sits for months on end. Very few properties are priced correctly in my opinion. However, the place I'm living is essentially a retirement community and I feel there is a large number of unkempt properties ripe for flipping coming down the pipeline. 

Anyways, since I'm new to the area and haven't connected with my go to agent yet, I'm brainstorming ideas of how to incentivize real estate agents to bring me off market deals (there aren't many wholesalers here). One way, of course, would be to offer commissions on both sides of the deal. Standard seller paid commission when you bring me the deal (maybe I can offer an extra %), and standard or elevated commission when you sell the property. If the numbers work out and I start landing deals, I don't mind paying more to lock it down. Thoughts on this strategy?

Any other ideas on how to incentivize multiple agents to bring you deals?

Not sure exactly what your expectation is for the real estate broker. Are you suggesting that he contact you with listings he has that are priced below market?  These, as all listings, are searchable online in multiple applications.  Are you thinking that he will bring you properties for sale that he comes across but instead of getting a listing agreement contacts you first to give you an opportunity to purchase at a lower price before exposing the property to the entire buyers market?  This would be a violation of the broker’s fiduciary responsibility to their client, as well as a violation of the Realtor’s Code of Conduct.  

I guess it is possible that a real estate broker in some way comes across a property for sale, at a price below market value, that's not on MLS, and rather than attempt to get the listing, or, failing to obtain the listing, passes the information on to you. And of course, for this information to be of value, it would have to be a property that you otherwise wouldn't know was for sale, so it would not be one in which the owner advertised the property online as you would have come across it yourself doing a daily or weekly search for new FSBOs in your targeted area.

[Robert Calabro]

I'm not familiar with the market in this area, but as an agent I think the best incentive is to know that if I spend time and money finding off market opportunities, the buyer will preform & I will eventually get paid for my work. 

I'd suggest building a strong relationship with an agent who's familiar with investment strategies and partner with that person to find off market deals together. 

I think the agent needs to know their hard work will eventually pay off. Giving them the opportunity to list the property on the back end of the flip is certainly an incentive as well. 

[Alex Goon]

Steven, we connected about a year ago over our shared history with Bainbridge Island. I'm currently in my junior year of college at Boston College and I will be spending my summer working in Denver. I definitely know some agents on the island who might be able to help you out! feel free to reach out to connect!