How to network with real estate agents?

Question

So, on a couple of lifestyles unlimited podcasts, I have heard that as a wholesaler, I should network with a bunch (hundreds to sift through to find some good ones) of agents to create a team that is helping me find buyers and even sellers sometimes.

How do you guys think I should do this, and do you think I should do this?

Delondon Dear · Answer

Its a give give relationship. Offer to buy them lunch. I would go to reia groups and see who is there because these are the realtors that are investor friendly. Some realtors wont want to work with investors so these are the ones to stay away from. At least the ones in the local reia meetings understand what we do as wholesalers.

Try it out.

Brian Stone · Answer

J  Scott  I understand.  Thank you for your feedback.

I guess you're right, I need to get some deals under my belt first.  However, here is a template for what I was going to send, but maybe I shouldn't now until I have some deals behind me.  I am trying to build a buyers list.  I have an REIA meeting on Thursday so maybe I will meet some there.  My marketing budget is limited so I am trying to get creative.

Here is the template that I created:

Dear ,

My name is Brian Stone and I own Stone Property Group, LLC.  I am looking to network with real estate professionals such as yourself to build a relationship that will enable me to help you sell houses to real estate investors.  I am just starting out in the business as a 
wholesaler (for now), but I am an honest, ambitious, and driven individual seeking to help you find what you need and succeed in the real estate business.

I hope you don't mind me contacting you to see if you and I can do business together.  I am looking to assist you in any way that I can, but also build my business so I can help your buyers and investors find what they are looking for.

Please let me know if we can network and possibly help each other with our needs.  I will be very willing to get you what you need for your buyers that you are representing and hope that you would be able to also find the same buyers for properties that I am finding every day.

Thanks for your time, I hope to hear from you,

Brian Stone

J Scott · Answer

In my experience, there are two types of real estate agents:

1.  Those who have no idea what wholesalers do, and don't understand wholesaling when explained to them; and

2.  Those who understand wholesaling, but don't really like to be involved.

Most agents fit into #1.  The ones that fit into #2 have probably had bad experiences with wholesalers who:

-  Were just tire-kickers and never made offers;
-  Made offers but often backed out of deals;
-  Tried to get the seller to lower the price after a contract was executed;
-  Made closings difficult with needing to double-close or some other non-standard transaction.

I recognize there are some very good, very ethical and very successful wholesalers out there, but they are a very small minority of the total group of people who call themselves wholesalers.  As an agent, I'd work with one of those successful wholesalers in a second; but unless the wholesaler had dozens of transactions under his belt and had proven that he could consistently perform, I wouldn't even consider working with a typical wholesaler.

So, I completely understand why 99% of the agents out there probably won't even be willing to have the discussion.

If you want to be a successful wholesaler long-term, you need to be able to find off-market deals.  Otherwise, you're competing directly with the investors who have access to the MLS, and they can afford to pay more than you can.