Struggling to get agent callbacks or interest?

Question

Hi All

Struggling to get callbacks from real estate agents in memphis, its kinda like agents dont really want to sell homes? Can anyone recommend a realesate agent thats keen on making some money?

Jack Inman · Answer

@Joel Owens summed it up pretty well.

@Wesley H. I am a local investor in Memphis, I'd be happy to give you the contact info of a couple of agents that work in the area. Just PM me

Elizabeth Wilson · Answer

@Wesley H. -  Message me your info and I'll put you in contact with our agent. She is a rock star!

Hadar Orkibi · Answer

@Wesley H. yes that happens. They work different in the US mate.

It's not like NZ where most agents are hungry. USA agents are not likely to cal you back to NZ mobile, to expensive. Email, Skype or call them.

I had the same experience in Memphis and other markets, bottom line mate if someone don't want your business then as we say in NZ "bugger them". Fined someone who will.

Memphis is red hot at the moment, easy money for agents who can get the listings.

What are you looking for anyway?

Dean Letfus · Answer

@Wesley you would normally be wasting your time talking to agents in Memphis anyway. I am a kiwi who trades in Memphis and lived there for a bit. You are far better to tap into the bird doggers and wholesalers. It's nothing like NZ where you expect an agent to be the go to contact.  I have a full time acquisitions guy now but my most profitable deals come from Craigslist, Zillow, attorneys and wholesalers.

Joel Owens · Answer

Hi Wesley,

I love being a principal broker and investor myself but for commercial real estate. I have found just as many flaky buyers as mediocre brokers and agents so it is a 2 way street.

I do not live off of the next transaction so I can be pickier on who I work with. I have system and process that I want my clients to follow. If they are all over the place and have control issues we do not even start working together.

If you invest long term as you say then hopefully you will not be lured in by cheap prices and mediocre areas from afar. On an economic down cycle the mediocre areas can turn into D or F areas. Many of those tenants are not savers and live paycheck to paycheck with no reserves. In fact their net worth is negative usually when debt is counted against them. So any job loss or a reduction in hours of a second job tends to send themselves and their family into a tailspin. Charity and assistance will only help them usually so many times before stopping.

I do not enjoy residential real estate and all of the tenants life issues they try to push on the landlord for sympathy and non-rent or reduced rent payment continually. It's not the type of investment I want to own. The upside is cheap residential is easy to get started with capital wise and their is plenty of it nationally. It's just not my cup of tea but others do well with it and enjoy it.

I enjoy business tenants it's numbers straight to the point with payment. No residential landlord tenant laws to deal with. It's not perfect by any means I just enjoy it better for my lifestyle. Capital requirements are much higher to start so that can be a downside.

All the best of luck. If you buy turn key I tend to like the properties 75k or higher and the turn key operators managing the product and they show gut up renovations to make brand new with electrical,roof,plumbing,etc. Those big capital costs can eat you alive and take away any cash flow for future years you thought would be there. Some of the older buildings cannot be rebuilt for what your purchase them at. Across the country about the cheapest new builds start at 200,000. The reason is home builders need about a 200k and up price point in the cheapest markets when land costs, construction material costs, and labor is factored.

On a brand new house the rent to purchase ratio might only be a 1 instead of 1.5 to 2 but generally you have higher equity growth especially if you buy stage 0 of a new subdivision project. You have to make sure the builder is strong enough to finish out a project if the cycle changes mid development.

2 examples:

One turn key bought at 60,000 all cash. Throws off 1,000 in rent. Take 50% off the top and you have 6,000 a year cash flow before taxes. In 5 years the property is basically still worth around 60,000. ( A lot of A to B areas changed hands 3 to 5 years ago so unless buying cheap with a major rehab likely paying market pricing for C to D areas today that tend to go up very little in value over time.)

New home build in subdivision at first stage of development:

200,000 purchase with 30% 60,000 down. A to B areas in a cheaper but growing state.

Rent 1,800 a month.

Less cash on cash monthly but once subdivision is finished out in a few years for final stage of completion the values have moved up substantially say to 260,000.

So one is an all cash flow play and another is more of a little cash flow and an equity play. I like the equity plays more myself with higher quality assets.

Hadar Orkibi · Answer

Sure thing @Wesley H. pm me and we can set up Skype or phone call.

Im free most of the days Wednesday onward this week.

Wesley H. · Answer

@jack : Thanks, sent you a connect request

@Joel : Thanks for the info, much appreciated. One thing you didn't consider...i'm addicted to property,i want it all haha..no seriously, i want it all!

I believe with any business, its always about the long term. In NZ , most agents became busy....didn't return calls or even answer them....then when the market turned for the worse(1yr later+-) We started getting calls from agents,but that time iv already built relationships with agents who want to work. I believe there's 2 types of people in this world. Ones that want to work and one that have to work,i prefer the ones that want to work. Makes such a difference. I used to be an agent(hated it, consumed my life), the thing that always got drilled into me was Time Management.

Wesley H. · Answer

@Hadar Orkibi

Thanks for the info!  I have all the gadgets and software for calling, including a US number on skype....but still no luck.   Can we catchup via skype sometime?

Wesley H. · Answer

NZ seems the same :/

Elizabeth Wilson · Answer

@Curt Davis -  great question and there is logic too it!  My husband is an agent and if he refers a good client to our agent then there is a financial benefit. :-)

Also if someone doesn't take the effort to message me their info,  I'm not going to bother my agent with them.

Struggling to get agent callbacks or interest?

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