All Forum Posts by: Chris Jefferson

Guy's i'll start a new thread with the information and will email it to those who sent me a msg with a request for it.

Got your PM. I'll shoot you a email today Dave.

We are using private funding and transactional funding on our deals. Mainly now private money on deals we Rehab. We only Rehab on deals that are showing a lot of interest when we market and are in areas that hold a lot of value in our area.

I always recommend holding until after the BPO.

However, as far as the lender requiring a listing they almost always do that. In our intial document request we ALWAYS as the Realtor for a pocket listing.

Which is exactly as it sounds a listing we keep in our pocket so that as soon as the lender ask for one we already have it to provide. :wink:

One other quick thing is I think you may be re-listing the property to quickly in search of a end buyer. We generally wait until AFTER the BPO in order to remarket. Main reason being is a good BPO agent is going to see your listing out there and could kill your deal. Unless I'm not reading what your saying correctly.

When are you guys re-listing your marked up deals??

Biggest thing to remember is that when it all really comes down to it the agent doesn't care about all the jazz. They just want to make sure they are going to get PAID. Just like me an you. Like someone said really talk up the commissions.

As for having realtor on the A-B. We do that all the time. We use the refferring realtor to be our buyers agent. Doesn't matter if we have a agent or not because we are either paying that out to the bank or to an agent.

We have recently been rehabing our properties as well in order to increase profit. You increase risk at the same time however the profits speak for themselves.

We get most of our business after we do a deal with one agent and they see how beneficial everything is etc and then start talking to other agents. Hope my info has helped!

I think the biggest thing is to understand the fact that your going to have objections. It's just part of the game. Every agent we reach out to doesn't want to work with us. I'd say 1/4 Realtors end up working with us.

Two things we have done have taken our business to the next level.

1. We had a broker friend that used to be a very large realtor before she started her own firm come on board. She then began calling every agent that she knew and talking to them about our business and what we do. Next thing you know another agent is talking to other agents in their office about what we do ETC and it's just growing..

Try finding a investor friendly realtor who understands what your doing and see the benefit. Don't be discouraged when you get shot down.

We put together a FAQ that we send out to Realtors who have a lot of questions. Pretty much answers every question or objection they may have.

I'll have to drop some more info later, but I've found personally the line that works ALMOST all the time when Realtors are hesitiant is.

" Bottom line is that we are CASH buyers who have a vested interest in the property and the transaction to be handled right. Only difference is we prefer to handle our transactions in house. We are confident in our own negotiations with the bank instead of a 3rd party. Again, we have a vested interest in making sure the lender comes back with a price that will ensure we are able to purchase the property."

Usually something along those lines lets us get past a few things. Also, we tell them we have references to other realtors in our area if they'd like to speak with them.

Another, when they hint around to it being fraud etc. We show them a article from the VAR legal counsel talking about exactly what it is we do and explaining that it isn't fraud. If they don't want to work with us after that then it would have been to much of a hassel to deal with them in the first place.

I can say the hardest part is getting a Realtor to allow them self to give up the control of the sale. They feel with you handling everything they aren't in control of it all.

They don't want you to have access to their sellers ETC. Upfront we say well "hey if you'd like us to send you the paperwork and you get it signed etc then that's fine with us" They ALWAYS come back later once they are tired of running paperwork and let us take it over LOL.

Biggest thing of ALL. Make sure you clearly explain to them that they will GET PAID and that they will see their commission on the CONTRACT. <--- This is usually what the hold up is because they think your trying to cut them out of the transaction.

Sorry for the ramble, but we were in your position about 8-10 months ago and i know it's frustrating. I want to see you get these deals!

90% of our deals come from Realtors. We even have Realtors at this point bringing us deals BEFORE they list them.

I think it's a great way to bring in deals. I can give you some tips on What we do daily to bring in leads.

Now, I'm not an agent and neither is my partner. However, we have to agents that work with us directly who make phone calls to other agents in regards to bringing in business. They bring in about 3-4 leads per week right now. PM if you have any questions. Hope you start getting those leads!

I look forward to hearing this call. Are you able to record and post for later download if we are unable to make it?

Dave, yea I'm on my cell phone so it was hard for me to scroll back and forth to see who said what. Thanks for the advice from everyone though.

I'd never pay a realtor 12% lol. I do like the idea though of what your saying. Basically the bank is absorbing the majority of the commissions paid?

We bring in the commissions for the A-B of 6 % and the C-D pay out the 6% percent and we pay out of our profits whatever the difference is between the two closings in regards to commissions due to sales price? Or am I still not reading this right?

I'm also interested in an answer to Caleb's question.

Guys, thanks for the insight. We like Ted and Dave mentioned do a lot of marketing to real estate agents and have quite a number of them on our team. It's this agent who is being particulary difficult, and we've decided to just not do business with her until she comes around. She tried to refer a property to us before and after we explained things to her she said "her client isn't interested in our process"

Which in reality was after talking to her as to why a few weeks later, was that SHE didn't understand what we were doing and for whatever reason didn't bother to ask. By the time her "seller" decided they wanted to work with us the bank at already gone to auction.

To many times we see that the ones really making the decisions on these transactions aren't the homeowners themselves, but the Realtors.

We pay out double commisions now to realtors who bring us leads before they list them on MLS and we've gotten a lot of deals this way.

I do like the way you explained that though Dave about basically getting 12% and paying out 6%.

I think going forward if the issue arises againt with another realtor we are going to put in an adendum that we have the right to refuse all offers like Dave said.

Generally, with realtors we deal with we will keep any buyers than come from continued marketing efforts as our possible C buyer.

I'm thinking of contacting my lawyers today. I contacted the lawyer for the VAR in my area. My understand is that it is up to the agent or sellers (we all know agents make all the decisions) themselves if they would continue to accept offers on the account. We are using a option contract as well. Do you have a copy of that addendum that I can read and have my attorney look at to see if it fits for our state.

Also, I like the idea of having the realtor sign a negotiation contract that states a negotation fee if they submit an offer other than the one for my company to the bank. Do you have a copy of that as well?

Thanks for the help Clifton!