Do Relators really wanna help buyers purchase a brrr?

Question

I am a strong buyer who has been prequalified also have money saved as well and I have been working with multiple relators at a time they all know my situation and that I'm ready to buy buy they do not seem interested in helping me purchase a property that needs work so I can successfully BRRR.

Am I overthinking this? Or am I doing something wrong? Any suggestions on how to get my first property?

Lumi Ispas · Answer

@Damien Papillo, Do you want to hear the hard truth from someone that has been in this business for almost 19 years, teaches people how to use this strategy and got burned again and again and again?

You answered your question when you mentioned you work with multiple realtors. I am not sure what you do for work in life, while I am sure you get paid for every hour you work at your job. With real estate, there is this incorrect advice going around that investors should work with multiple realtors in the same areas. This advice, unfortunately, is what holds investors back, as if a property is on the MLS, all realtors have access to it. What that means is that you are asking multiple people to play in the same pool and you let them know that you are sending them to work, however only one person will get paid.

You expect every one of them to peruse the mls, do multiple comparative market analizes to make sure the property will work for a BRRRR ( each can take hours), do more CMAs for rentals, do showings, calculate the cost for you to make sure the numbers work, write offers, and if the offers don't go through as either there are multiple offers or the seller won't lower his price to your offera, you'll drop that agent after tens of hours committed to you for the next Realtor that calls you first with another property for the MLS.

Are you starting seeing an issue here? Why would these people want to work for you when they know the chance of actually get paid is close to zero as you are not loyal to them? Why will they commit their time when you are not?

If you truly want to have the deals, talk candidly with the realtors you think that are knowledgable in what you are trying to achieve, see if they've done any deals themselves or how they invest, make sure they work full time in real estate and commit to one of them. Let them know that you depend on them to find you a deal. You see something online or a wholesaler sents you a property you call them to run a CMA for you. You decide who is the person and stick with them. You'll be amazed how many deals you'll find when the Realtor knows you are loyal. She'll treat you like a gem an as soon as you invite them into your team and threat her/ him the same way.

Jonathan Taylor Smith · Answer

Most Realtors deal in "Pretty Houses" purchased as the buyer's primary residence. A very low percentage of successful Realtors (which itself is a low percentage among Realtors) are themselves investors and/or able to effectively work with investors. The so called "Ugly Houses", and those otherwise needing some level of rehab require a skill that few Realtors have - which is the ability to estimate what rehab is needed, what it should cost and then what will be the resulting ARV. Trying to buy a property for BRRRR with the average Realtor is a lost cause, unless you do not need for them to do much more than unlock the doors for showings. Find a Realtor in your area who actually is an investor or who works with them frequently.

Sam Lewis · Answer

Hit the nail right on the head.

Todd Pultz · Answer

@Jonathan Taylor Smith @Damien Papillo

I couldn’t agree with Jonathan more. Most are not equipped to handle investors or pretend that they really are! I got my license this year because I was tired of dealing with realtors and paying them the commission when I did all the work.

However, I just recently spoke with my broker and we are going to put a class on to teach some of our agents (ones that want to) how to work with investors and specifically for the brrr strategy. Part of this is teaching THEM how to drive for dollars and bring that to their investors. This is a gap in our industry, but it could be such a win win for everyone. There are some good agents brokers out there who are investors and will do good for you, but you have to ensure your investment goals are not the same. You don’t want their bread crumbs

Mike Cumbie · Answer

Hi @Damien Papillo"I have been working with multiple relators at a time they all know my situation and that I'm ready to buy buy they do not seem interested in helping me purchase a property that needs work so I can successfully BRRR."

If you are working with "Multiple REALTORS". No problem. But I am not throwing any prime meat to a lonely wolf, I'm feeding my Shepherd with that... She loves me.

I will still throw some scraps out to the pack every now and then and see what comes looking for more  :)

Steve Morris · Answer

"I’m just frustrated because I am ready to go I have a good amount saved not really enough to buy something cash more then 30k. Then the houses that work for the brrr that I analyze are getting bought cash. So I feel like I’m just watching everything I want get bought out right. But I don’t want to rush and buy a property and not be able to brrr it so I can get a few properties in the next few years."

Umm, OK.  Get more money.

What does that have to do with the broker?  Broker's get paid when people buy and if you can't afford why are you spending your/their time looking at places?

Damien Papillo · Answer

@Lumi Ispas

So I started off with one Relator and I seemed to be doing all the work finding the houses so I randomly tried another one off Zillow and he was cool

Because he met me at the house every time I asked him too but I was still finding the houses. I recently sat down and had dinner with another guy I’ve known for years and filled him in on everything but he seems to be really busy all the time.

I’m just frustrated because I am ready to go I have a good amount saved not really enough to buy something cash more then 30k. Then the houses that work for the brrr that I analyze are getting bought cash. So I feel like I’m just watching everything I want get bought out right. But I don’t want to rush and buy a property and not be able to brrr it so I can get a few properties in the next few years.

Do Relators really wanna help buyers purchase a brrr?

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