All Forum Posts by: Karl Krentzel

Thank you for the inspiration! I wrote a blogpost today answering this question for my listeners on my podcast as well! Thanks! Here is the link! (What Questions To Ask An Investor Friendly Agent!)

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Originally posted by @Tom Mole:

@Dev Horn, that sign just cracked me up. Ironically, the TV is running the background and they had an WeBuyUglyHouses commercial. I got the same feeling from the TV ad as I got from your sign. I just had to laugh.

@Karl Krentzel whilst I disagree with bandit signs in my heart and they're generally illegal, they are legal enough in some areas and fairly well tolerated in other areas. Beyond that they can be effective. You have a point when you say that newbies need to reach people quickly. They may not have a lot of choices, besides hanging signs is what their guru told them to do. They're just following orders. Maybe we ought to teach them to better methods.

Perhaps this is why most people seem to dislike bandit signs (including our BP hosts, @Brandon Turner and @Joshua Dorkin). The signs indicate an unsophisticated, newbie investor trying to take advantage of distraught homeowners. Let's face it the I Buy guy is ALWAYS going to make a pretty crappy offer to the homeowner. All in all there's something stinky about bandit signs. It's not that they don't work, but perhaps they shouldn't.

It's just my stupid opinion. No disrespect intended.

Happy New Year!!

I appreciate your input on that. And you are right, bandit signs are not the BEST way to find business.... they are effective... but not the MOST effective. You are right that it is the most commonly taught thing to do (besides direct mail) by everyday REI Gurus.

That's why I teach people to call FSBOS, Work their centers of influences, etc. etc etc.

LOL

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Originally posted by @Mark Mynhier:

There are pros and cons to bandit signs...a lot of it boils down to taste and test marketing. Karl Krentzel (Red Pill Investor) says that if you have a Real Estate License, they are not illegal since you pay the City for the priveledge of posting signs to buy and sell houses. Having said that, a burner phone is definately the way to go if you use bandit signs for many, many reasons (the least of which is too many people having your phone number). Each market is different and each person's approach to getting leads is different. Learn what works in your market and use that approach.

Thanks for mentioning me Mark.. to be clear, "bandit signs" in and of themselves aren't necessarily illegal. It depends a lot on the placement, zoning, and other requirements. As a Realtor®, you can use bandit signs.. however, you must also keep compliant with local sign ordinances and the Realtor® Code of Ethics.

In my experience, bandit signs (especially for Realtors® who wholesale or invest) can be a lucrative way to attract "now" type of business. If you are a newer investor, that's exactly the type of business you need!

Thanks for the mention, as well as our podcast at TheRedPillInvestor!

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Well, that's a great question. I used to actively do REO (until I started doing more investing) and I did a silly video on YouTube of how to do it.

Good question though!

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Great Q. Commissions I run through my PLLC, and equitable interest sales (wholesale deals) go through personal. I don't take commissions on wholesale deals. Just too much risk of creating any unwanted agency issues.

If there is anything that will screw your day up, it's a agency claim that you misled them etc. In AZ, that is a "treble damage" day!!!!

Hope it helps!

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Originally posted by @Michael Moikeha:

How do you mitigate the conflict of interest between being an Investor AND a Broker?

On one hand you try and sell at market value, the other you're trying to buy from said person below market value. Where is the moral line?

What disclosure laws are there?

Do you ever run into an issue when doing your marketing mailers where the recipient thinks you want to list their house even though you clearly state you don't? If you're contacted as a Broker from your mailers, do you have certain obligations?

Sorry if my questions seem uninformed, but I have heard mixed responses and wanted to ask a broader audience.

Thank GOD someone asked this question!!!!

I have an entire blog about the subject of agents investing, plus a podcast. The short answer? DISCLOSE. The Code of Ethics (NAR) shows you how in Articles 2, 4, and 7.

I wrote three specific articles that may be of interest to you. The first with respect to agents flipping homes or wholesaling is with respect to disclosure.

Real Estate Agency for Realtors® who Wholesale!

Then of course there is the very important issue of Disclosure....

Why Disclosures are Killing You!

and finally

Presentation Skills for Realtors® who Invest

I can assure you, as a licensed Broker/Realtor® who flips homes too, there ARE NO RESOURCES available that I have been able to find SPECIFICALLY on the topic of AGENTS who Flip property.

Best wishes!

2 Votes

I have known Mark Van Dyke personally for a couple years now. He and I have actually done a deal or two in Tucson over that time as well. As a Realtor®/Investor myself, I appreciate Mark's forthrightness.

I remember when he began his program to help people learn how to sell virtually, it wasn't that it was "new" so much, inasmuch as the WAY he approaches it.

Mark, in my opinion, is a pro, (I have no affiliate thingy with him) and I recommend him heartily.

Karl

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It depends on how you wrote the contract. If you cancel during your inspection period, you get your earnest money back, and all parties generally return to their original status. UNLESS of course you have contracted to make some or all of your EMD subject to forfeit.

Great Q!

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Originally posted by @Roy N.:

@Brett Synicky

I probably wasn't clear in my response. I do not tip the listing agent that I am sending in a low offer. I do typically tell her/him that an offer is coming ... or, if I am using a buying agent, my agent will tell them.

I do agree with asking to present the offer in person. Though my experience has been that this works in the commercial space, but not in residential property sales as the vendor's agent tends to be over-protective (or insecure) and does not want you dealing directly with the vendor. I can understand the reasoning behind this if the vendor is John & Jane Public selling their, or Mom's, house, but even in this instance, they should ask the vendor if they are comfortable having a dialogue directly with the buyer. If the vendor is another investor, then I typically prefer the agent allow a face to face meet.

My two centavos? As an active Listing Broker and Wholesaling Realtor® I make offers on MLS property all the time. If you are dealing with fixup type property, let's just call a spade a spade.

Oftentimes, the one who is brave enough to say "The Emperor Has No Clothes!" is often the one who gets the business. The problems with MLS property that would cause you to flip them (the 3D Effect... Disease, Death, Divorce) or M&M's (Mistakes and Motivation) generally are known to the parties.

As a buyer, your determinations are based upon what you would pay. The rest, as they say... is irrelevant.

Good luck, and may I recommend using "The Pawnshop Presentation?"

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Hey no problemo! Feel free to check out our podcast or our blog to help show you practical ways to implement all those scripts and dialogues to make you an even more POWERFUL Realtor®/Investor!

Have a POWERFUL Sales day!

1 Vote

All Forum Posts by: Karl Krentzel

Karl Krentzel has started 64 posts and replied 391 times.

Post: Investor Friendly Agent Checklist

Post: Bandit Signs in Los Angeles

Post: Bandit Signs in Los Angeles

Post: Steps to take to become an REO agent

Post: Realtor Investors - How do you handle commission?

Post: RE Agent Vs RE Investor Conflict of Interest

Post: Mark Van Dyke-virtualwholesalerusa.com

Post: Wholesaling question

Post: Making Investor Offers

Post: Wholesale Scripts - The Initial Pre-Screening