All Forum Posts by: Karl Krentzel

Building a Powerful Real Estate Team?

If you are thinking about building a Real Estate team in 2015, then you probably have a few questions! 

If you want it to be successful, then you naturally know it will require planning!

The good news is, there is a complimentary e-course available filled with the questions you must ask yourself when considering building a team!

Be Smart... Save Time and Money! Learn from Others Mistakes! 

If you are a licensed agent, then this course will save you thousands in needless hires, and wasted time.

If you are an Agent/Investor who is looking to add time to your schedule, then you would definitely find answers to your team management questions in this course!

After building a successful real estate team myself, I've shared the core ideas with others to build hugely successful teams.  

Change Your Questions, Change Your Life!

It's been said that if you want to change your life.. change the questions you ask yourself.  

To change your "Real Estate Life", with regards to building a team... I've got 20 of them!

Originally posted by @Dan Losh:

Karl Krentzel thanks Karl, my mindset is set for above and beyond! :) just not sure how to take the first little steps to get in the game.

 Here is a 5 Step Plan Just for Dan Losh!!! (And anyone else who is interested!)

1.  Lead Generate... By Any Means Necessary!!  In order for your business to thrive, it must have new leads daily!  In order to build a controllable, duplicatable business, you must control the inventory.  As a wholesaler, that means getting your own A-B Contracts.  They can come from many sources. Letters, signs, calls, etc. Google some of the names of the poster's here in BiggerPockets as they often have other resources available on the topic of lead generation.  

2.  Lead Followup....As 70% of your business comes from there. Most of the people you will talk to will tell you "no" the first time.  Keep following up with those truly motivated Sellers!

3.  Pre-Qualify Your Leads 100%.  Prequalify them for motivation, ability, as well as "what happens if it DOESN'T Sell?"  Understand this fundamental truth.  You cannot want it more than they do.

4.  Present POWERFULLY Your Solution.  You don't exactly know what you will be doing with the property at this moment.  You can't!  You never know if you might find a partner to rehab it, or a private money lender to help you finance it.  Therefore, keep your options open and show them what your solution is to THEIR problem!!

5.  Handle any questions, and ask them to sign the contract. (aka Objection handling and Closing!)    Try as we might, at the end of the day, they will have questions or objections to the price.  The trained wholesaling Realtor®/Investor or Wholesaler knows that they need to answer their questions professionally and get the contract signed!

6.  Repeat as often as necessary!  How much do you want to be paid?  The sky's the limit!  There is literally no limit to how much money you can make in this business if you approach it in a systematic way.  

Anyway, those are just a few of my thoughts after looking back over 18 years, and what I would want to know if I were new... hope it helps! 

Have a Powerful Sales Day!!

k

Awesome for you! As a licensee, it's not a "net listing" when you assign a contract. So no fears there. Focus on one course until successful. Find motivated sellers. By any means necessary!

Utter nonsense! Age is not as important as a factor as confidence and sales skills! I started at 24 and looked 18! Heck, One of my clients is 24, and first year did 17 transactions! It's all about mindset!! Don't short yourself!

As a podcaster, from my experience, I typically only invite guests who I feel have something to contribute to my audience.  My community (The Red Pill Investor) has over 1800 people in it, and with a listenership of over 108k downloads, I tend to be choosy.

My advice?  You must start from a place of giving.  I've been interviewed on several podcasts myself including @JoeFairless and @SeanTerry and I've never asked to be on their show.  

How you "Get on them" is by being a contributing member to their community, OR have something of value that you can offer to their community.

So often, "guru's" will use the podcasting platform as a simple avenue to the podcaster's audience and community.  Podcasters who do that (IMHO) are simply affiliate marketing. Not providing value to the community or audience.  

So, in short, if you want to be on someone's podcast; my advice would be this...

1. 1.  Determine what podcast you want to be on.  (The audience you want to reach) 
   
2. 2.  Determine who the owner or host of the podcast is, and offer them something of value that you feel could help their audience.  (**this part is critical... it must be of value to the community they serve***) OR
3. 3.  Have a FASCINATING Story!!
4. 4. Let them know that if they are ever in need of a person to interview, you would be willing.
5. 5.  Let it go. How you treat the podcaster in your followup is how they gauge how you will treat their audience.
6. 6.  If they allow you to come on their show, follow their rules exactly.  Do not promote any products unless they allow it, and only when they allow it.
7. 7.  Be gracious.  If they say no, that just means "not right now."  

Remember, it took a LONG time for me to build up my audience (18 months).  Personally, as a podcaster, I have an obligation to my audience to create useful content that adds to their life.  

If someone comes on my podcast, and wastes time by trying to shill out products, not only will I NOT post their podcast, they won't get an invite back.  

Those who are helpful, and follow Zig Ziglar's Rule of "We Get By Giving" however, are always invited to come... if they have an amazing story, or something of value that could help my listeners.

I hope this helps you!!

Have a Powerful Sales Day!! 

k

Originally posted by @David Begley:

Originally posted by @Victoria Winters:

@Karl Krentzel  

As pointed out by many of the posters in this thread, it is possible to wholesale legally and ethically with and without a license.  It is all a matter of understanding tthe wholesale business and applying the knowledge in the correct scenario.  Any tool will work if the person using the tool understands how it operates, has or creates a need to use it and uses it to the best of their ability. 

Net listings by a Realtor/Broker are illegal in Georgia (and most states) and so is ANY marketing of any real estate without including your Broker's information "in the same size print..." in and on the marketing materials.  As I understand it, this includes even real estate you own - you must disclose to any potential buyer that you are a broker/realtor even if there is no agency relationship.

To say, cart blanche, that it is ethical and legal to wholesale as a Realtor is just patently false; even without a real estate license many wholesalers, if not most, border on the unethical even if not strictly breaking the law.  

 For my two centavos RE: The "Net Listing" issue.  As far as the Code of Ethics goes, I believe the current belief is that it is not a good practice to have or do.

However, wholesaling (aka "Assignment of Contract") is NOT a "Net Listing"

A "Net Listing" is where the Agent takes SOME form of Fiduciary duty to the Seller in a Written Listing Agreement.  

A "Wholesale Deal" is where a BUYER (who happens to be an agent who has disclosed their status as a licensee) enters into a SALES Contract with the Seller.    The Buyer at some point subsequent to the execution of the A-B Contract sells their interest in said contract to a third party.    There is no agency implied, nor expected.  

No agency+No Listing Agreement= No Obligation to Seller for anything other than"honest and fair dealing."

Just my thoughts on the whole "Net Listing Thingy" It's not the same as assignments.

Originally posted by @Ned Carey:

Originally posted by @Karl Krentzel:

When Agents are acting on their own behalf, then there is no net listing.  No listing at all.  They are relegated to the status of "Buyer". 

Karl,

No question about that. But I live in a liberal state and you don't know how the courts will rule. It would not be the first time that MD courts ruled contrary to the law to help someone they perceive as being taken advantage of.

 @Ned Carey: I appreciate where you are coming from.  There is plenty of caselaw that refers to this.  Of course, you cannot guarantee justice from a courthouse. 

However, if we lived by that same standard, we would never call on expired listings (as they cannot in Canada); and we would never grow beyond that traditional role of Realtor to the buyer and the seller.  

While there is absolutely no caselaw, and no precedent to suggest that we can't, especially in light of the Code stating we can, why shouldn't we?

Originally posted by @Ned Carey:

All it takes is for one judge to decide it is a net listing and the game is over. As @Paul Ewing said these are illegal in TX but I suspect in most states. Most agents are clueless to investing and what makes a good investment deal. Why would you expect wholesaling to be any different?

 @Ned, that is a great observation.  Some Departments of Real Estate (Notably Ohio) have taken aim at unlicensed wholesalers because of the confusion that they bring to the marketplace.  

It is a good thought about a "net listing" (which in the Code of Ethics, we are discouraged to obtain).  However, the only challenge I would bring to your attention is again the Agency issue.

When Agents are acting on their own behalf, then there is no net listing. No listing at all. They are relegated to the status of "Buyer". As no Buyer would list the property, and as many MLS's require more than equitable interest to be sufficient for an MLS listing, the danger of a "Net Listing" is ONLY if the Listing agent enters into an agency agreement in the first place. 

So long as the agent does not confuse, nor enter into any agency agreement with the Seller during the process of buying, then subsequently selling the home, it is acceptable within the confines of the Code.  

Agency, it seems, is the challenge when Realtors® face the untrained Seller.

Originally posted by @Jay Phillips:

I think what you're "frustrated" about is that you're not selling more of your "training" to Realtors.  

Presumably you decide to wholesale the deal because you think your spread will be more than your commission would otherwise be. How does this lead to a seller making more money? If they list with you, do you just dump the property on the MLS, but if they agree to sell to you, only then are you actively marketing the property to your wholesale buyers?

Realtors who make it practice to go on a listing appointment and end up negotiating a deal to "buy" (wholesale) the property, I suspect will sooner or later wind up defending themselves in front of either their board disciplinary committee or the real estate commission.

 Thanks for the vote of confidence @Jay Phillips..  you are right.  Inasmuch as I wish MORE Realtors® would of course buy my training.  That's certainly always a frustration.  But then, I don't need to sell training to Realtors®... they are smart enough to recognize value when they see it.

To answer your poignant question, the wholesale deal may sometimes be the appropriate response to what the Seller is requesting.  

Of course, as an Agent representing yourself, you are not trying to "make the seller more money."  

If they agree to sell the property to you while you reserve the right to assign, lease, rent, repair, or sell the property; then there is no need to worry about who you are marketing it to.

While I agree with you in principle that if a Realtor® makes it their practice to go on listing appointments, while not clearly disclosing their own agency position (as I mentioned previously in a separate disclosure) will undoubtedly face some serious problems in the future... it is a non issue when the practitioner addresses the agency issue in advance.

This is clearly outlined in the National Association of Realtor Code of Ethics, and does not preclude your absolute right to purchase on your own.

As to me teaching and training, you bet; as the Apostle Paul said... "Woud to God that you would ALL Believe."

Thanks for taking the time to read my post, as well as respond!

k

@ Paul Ewing: No, our obligation through the Realtor Code of Ethics is to disclose to the Seller the true nature of the value of the home.  (Article 4).  

I did an article on my blog at TenMinuteSkill about this as to the ethics.  

@Dennis Poulson: You are right on track.  The problem lies within agency.  If the customer believes that you are acting on their behalf (Be they buyer or seller) then the agency is implied and therefore "poisons the water" in the transaction.  

What I do is provide a separate disclosure sheet upon meeting the client.  In this disclosure sheet, I disclose that I am a licensed agent, that I am not working in any capacity as their agent, that they are going to receive comparables, etc.  

When you approach it like a traditional listing or buyer appointment with the substitution of your own "Personal Agency Disclosure" then you are well on your way to ensuring that they customer does not assume you are acting in their best interests.

Obviously, this should be reiterated within the contract (NAR Code Article 7) but for Realtors®, adding this as an option can be a profitable way for both Broker as well as Realtor to make additional leads/profit.