About a year ago, I attended a REIA conference and landed one of the best house flips I’ve ever been to.
At this particular REIA meeting, I was given the opportunity to stand up in front of the group and ask the group what they were looking for at the time. This is one of the really great things about REIA meetings and what we do at our own MeetUp.
I said I’m looking for short sale opportunities in any market. Behold, there happened to be a short sale specialist in the crowd.
I talked to this woman after the meeting, and soon discovered she was a real estate agent specializing in real short-term sales.After we talked she put me in her very “short” one (Yes, puns) A list of people to contact when she encounters a short sale in her market.
Her market is 30 miles away from my office, but I kept her card in a file and emailed her the next day saying it was nice to meet her.
About a month later, she called me. She said she had a property for sale in Scituate, Massachusetts and she had to see it right away. She had other real estate investors on the list, but she called me first for our meeting.
Needless to say, I drove to see if it was the next day. She ran some comps and then I made an offer.
It was accepted the next day and we went to the race we went to.
Quite short to make a mistake in a long story (Sorry, it’s twice now)Made a profit of over $ 42,000 on pre-tax flips.
Just by turning it over, I became a true fan of real estate agents …And that’s not because my wife (nice and talented Christine Lakava) happened to be alone!
Realtor and Home Flipping
Needless to say, some of the best house flips I’ve ever been to were from realtors, many of the markets I wasn’t really familiar with.
Most of the ways we turn the house over You can find it from the non-MLS listed list, never discount a good realtor who knows your market to discover a great potential home inside out for you.
Here are some tips to help you get the most out of them.
1. Take the good and the bad
Like everything else in life, good things come with bad things. There are good general contractors and bad general contractors. There are good plumbers and bad plumbers. There are good electricians and bad electricians.
The same is true for realtors. There is no doubt that not all agents work properly. Some are great for working with, others are less capable.
And keep this in mind when you are building A member of the flipping team in your home.. But work with as many people as you can with your real estate agent. Pick out who you really think is competent and who isn’t.
For me, I worked with dozens of realtors. But I’m actually dealing with only a handful of people.You can probably expect the same kind of percentage
Obviously, Situate’s agents are one of the really good agents in close contact.
Not all realtors have helped, but the next time she calls me, I’ll get in the car that day and see what she has.
2. Agent is also a businessman
Never forget that agents are also in business. They want to make a lot of money and time is money for them.
Therefore, your goal when talking to them is to educate them and make them understand your business model so that you don’t feel like you’re wasting their time.
But likewise, keep in mind that most realtors go out for themselves. Like any profession, this is a rule, not an exception. It’s a very rare and successful business person, going out for yourself and giving the same timeout for you.
Wise people realize that if you can help yourself while helping you a lot, you will both succeed. And that’s the best way to do business..
3. Training is ok
Some realtors need to explain their business model, demographics of what they are looking for, and the geographic area where they want to buy a home.
This is perfectly fine, as most realtors are accustomed to dealing with the retail sector rather than the real estate investment sector.
Keep in mind that agents that may not understand your business should not be automatically excluded.
If you “train” new realtors to what you are doing and let them hunt down real estate for you, you both make a lot of money. Some of the best real estate agents I have worked with are successful and ambitious relatively new agents.
Your call with these types of agents is to build relationships with them, make them understand your business model, and stay in close contact with them in your target market.
At the end of the day, they can make money not only by selling property to you, but also by selling property for you when all the refurbishments are complete.
4. Make sure they know you are rolling …
When you first start networking to find a good realtor for your home flipping business, you should talk to them about how you work.
Try to discuss with them early on what you are doing. How to approach a transaction.. This should include explaining to them that you may need to submit 10 offers to get one transaction. This also means they may have to show you more properties – probably much more than the average homebuyer.
As a house flipper, that’s how you roll … and they need to know it in advance.
Talk to them at networking events or on the phone and you’ll quickly see how motivated they are. When you are a real estate agent, finding an upside-down home can be a lot of hassle. If you feel that this initial consultation lacks enthusiasm, you may have found a realtor you don’t want to work with.
Similarly, if they appear ambitious, ambitious and excited about the prospects of working with you and all the multiple deals you bring in, it’s an early sign that you really found a winner. maybe.
5. Build and understand relationships of trust
Remember, like the other members of your home-turning team, the most important factor in keeping them on your team is the relationship you have with them. From their point of view, try to understand what motivates them and how their business operates. It’s not just you. To get them to work with you, you need to understand what is included for them.
This comes from building relationships and understanding what they want.
6. Not just MLS
The properties listed in MLS are where most agents source transactions on your behalf.
However, keep in mind that transactions may occur outside of MLS. And in many cases, realtors currently have a list that is “off-market.” These may be transactions that the seller just feels if he wants to sell. Realtors have access to these types of properties.
But to get the best deal, you don’t just have to wait for the right price to appear on MLS. Sometimes real estate is overpriced and realtors understand and know it, but often they still know about real estate for sale before it is listed in MLS.
7. Beware of short sales and REO agents
If the realtor is directly linked to the bank’s asset manager and they are REO brokers, they will know before anyone else when the transaction becomes available.
So if real estate is listed for $ 150,000 and is only worth $ 100,000 to investors, a good broker essentially understands this. In that case, don’t waste your time, don’t put in your offer as banks aren’t going to accept anything too far from what they expect to sell.
Actively looking for these types of professional realtors, meeting them, getting along with them, drinking coffee with them, keeping them in your Lorodex, and your card when they make a good deal Make sure to store them in their Lorodex.
For me personally, realtors are working very well for me. Many other real estate investors disagree and may tell you that they don’t want to buy anything at MLS because of the fact that everyone knows. And when everyone knows about it, the price can be out of your range to make your number work.
This is exactly why you need to meet and know as many realtors as you can. If most real estate investors think this way and you do the opposite, you are now in the race.
With the ideas from above in mind, you’ll find lots of great house flips from realtors.
If you get this far, leave a comment below! What do you think about working with a real estate agent? Leave a comment and share your thoughts!
Photo: Alan Cleaver