Subject To Newbie With Golden Opportunity - I Think, But Need Advice!
I have a good relationship with a Realtor, who will provide me with all the expired listings available, along with Fsbo info, to include sales comps, etc. The Offset is that I would pay the Realtor $500-$1,000 per closed deal, and when and if I should sell by listing, then I must list with the Realtor, who will then get a normal commission.
Is this a good or bad arrangement? What to do? SUGGESTIONS, PLEASE!! :-?
In my area there are TONS of realtors, most of them are terrible, and most of them don't make much money.
In my area, you would be WAY too generous to offer him all of that.
When you sell properties, do you Want to sell them through an agent? what if you don't?
Keep in mind, you're paying him $500-$1000 per close and he's doing NOTHING except for sending you out a list once in a while (which probably takes him 0-2 minutes on his computer). That's a GREAT deal for him. If he's doing nothing, i'd probably pay him $20 every time he pulls the list for you OR $50 per close or something like that.
I'd also take them one at a time as you sell them. If you want to sell the first one through an agent, use him. If he does well, use him again. If not, move on. Don't tie yourself to him when you don't know how he is. It will also keep him motivated to work for your business.
I have a good relationship with a realtor as well. He provides me with full access to the MLS (which is all that your guy is offering to do). In exchange when I buy a property that is listed with another broker he represents me. Thats it. No fee for the MLS info, no necessary agreement that he gets the back-end listings (though I would give them to him if I decided to list them).
With too many good relationships like yours you could go broke in this business.
Hey,
I don't agree with paying this guy $500 to $1000, but what is the difference between this agent and a birddog???
There are hundreds of posts about paying a birddog this much money and everyone nods their heads and says "Yes they deserve that much."
What is an expired listing? I also have a problem with my realtor she seems to want me to look up everything myself, I'm interested in hearing more and more about Bird Dogs
Quote:
On 2004-08-31 02:37, woodsrim wrote:
I have a good relationship with a Realtor, who will provide me with all the expired listings available, along with Fsbo info, to include sales comps, etc. The Offset is that I would pay the Realtor $500-$1,000 per closed deal, and when and if I should sell by listing, then I must list with the Realtor, who will then get a normal commission.
Is this a good or bad arrangement? What to do? SUGGESTIONS, PLEASE!! :-?
WOW.....What a superb return of information. Thank you all. Over the years, I've had quite a few businesses, and have been known to give it all away in terms of benefits to employees and contractors - and here I go again!
You know, so far, I have sent 10 ships to sea seeking my fortune. Have done quite well on a few, and badly on others. But, the end result, is that all 10 eventually sank.
I am now sending my 11th Ship to sea seeking a Real Estate Fortune, and I have finally found my Master Mind Group, as Napoleon Hill calls it, in his "Think And Grow Rich" book - YOU GUYS, and the whole business of support from people like you. I expect to be able to return the favor very soon.
Thanks Again,
David
Is your realtor giving you COMPS with each property? If so, that small referal fee is probably worth time savings. You'll know instantly which properties are worth going after and which ones aren't.
Comps, for both rentals, and sales are provided as I need them. Thanks for your input - something I didn't think about.
There is absolutely no problem paying a Realtor a "consulting fee" if they are supplying you with leads regardless if they act like a bird dog or not. If I get a subject to which I L/O to a potential tenant and they help me sell the deal, I pay them up to 3% commission. I want that person as my friend! They want to get paid. If it is not listed b/c there is no equity, then I pay them b/t $500-$1000. Everybody still wins and they bring you more deals b/c they want to eat too.
I am a realtor in Phoenix and an investor. Why should I spin my wheels for a possible investor if all I will get in return is $20???? I can better spend my time working with buyers/ sellers who recognize the value of professional service - time is money. I'm more apt to pass a good deal to someone who treat me right than treat me like a "dog". It's a kind of partnership. I'll work harder for those that are serious and agree to win-win agreements. Wouldn't you?
Quote:
On 2004-09-01 02:26, chiordi wrote:
I am a realtor in Phoenix and an investor. Why should I spin my wheels for a possible investor if all I will get in return is $20????
Are you passing a qualified lead to the investor, or just printing a list? Seems to me that $20 is pretty good for 2 minutes worth of list printing. Isn't that like $600 per hour? That's more than my lawyer costs.
[addsig]
Bruce,
I think the difference between this guy and a bird dog is that this guy is also expecting a commission.
Also I guess I missed the fact that he's not expecting a commission on the FSBO transactions, only the bird-dog fee which makes it a less bad deal.
Havacigar and the others who are sticking up for the integrity/value of the Broker, I couldn't agree more. However its also a competitive business and the broker here has to keep in mind that competition. My friendly broker kicks in a lot of work on deals that never get done (including running comps on FSBO's) because he knows he's going to pick up several commissions a year from me on the deals that do happen.
Bird Dog - My Realtor?
I am going to take a week off tomorrow, taking my "beloved wife" to South Padre.
That is exactly what my Realtor is - a Bird Dog, and I'll be paying her a minimum of $500 at a pop, and sometimes more.
You see, as a result of my initial post, you guys have all given me great insight, and I thank you one and all.
As an afterthought, I am going to be profiting between $20,000 - $45,000. on most of my deals. I can certainly afford to pay a reasonable up-front fee, and then a decent commission of $1,500. - $2,500. on the back end of my ST.
deals.
Farewell, and thanks again for all the input !
David