How to deal w/ Real Estate agents
Hi,
I need help on this topic since I find the whole thing very confusing. Especially dealing with MLS and agents. There is something that I can not figure out about dealing with Real Estate Agents.
Every course mentions the value of dealing with agent and accessing MLS, but they never dive into details. For example, let 's say that I had the agent access the MLS for me and gave me properties that I made offers on. One of my offers does get accepted. So it is time to flip it to the investor buyer.
However, things go wrong and all potential buyers turn away from the deal. I am stuck with the offer I made!!!
How do I handle(prevent) this situation?
Also, an agent uses the Standard Purchase Agreement. How do I make the "Assign to" possible for flipping purposes? do I use my own name in the offer or ... ?
Is there some course that would dive deep in detail on this? Where can I read up more?
thanks, Louis
Anybody out there ? any idea?
louismontes,
Glad to meet you.
Just a slight correction, not every course says deal with Real Estate Agents, mine for a fact does not recommend dealing with them.
There are some agents out there who really are there to help an investor, but I find they are far and few in between. You will have a long search in finding one that is really looking to help you.
In my expierence you can get all the info you need on your own, with out sharing your profits with anyone else.
John $Cash$ Locke
louismontes,
I do agree that many courses seem to encourage the concept. (As JohnLocke mentions, probably not *all* of them. )
As far as being stuck with an offer, that sort of depends on what you've done. If you've literally just given them an offer, you should be able to say nevermind. If you've signed a contract, then make sure your earnest money is an amount you can live without should things go awry.
I'm still in the middle of my first deal, so I'm not the best advice; but in the contract we made, I gave $10 earnest money. If it falls through, I think I can live with it.
JohnLocke,
I'm going to disagree with you (and I do this very carefully, I don't disagree with people I view in "Godlike" terms very often ) in that although finding investor-friendly agents is probably very uncommon:
Although I speak only for myself in this, as a very blind and unfamiliar newbie, I'd be willing to share profits with an agent as long as I felt the deal was genuine, and the agent was being honest (as an agent can, I suppose lol) in order to get some experience behind my belt.
Andrew
I just realized I use these smiley faces waaay too much. Sorry, folks.
wonderboy1999,
I am just plain John or $Cash$, I try to tell it like it is. So dissagreeing me does not get your wings clipped.
A good relationship with a Realtor is golden, however if you read some of the posts where the real estate agent steals the deal (right here on TCI) and the first time it happens to you I am sure you will change your view.
Before I became a Creative Private Real Estate Investor, I made an offer on a property, my offer was for cash. The real estate agent told me the owner accepted the deal.
Then she called back later and said the owners changed their minds. I let it go but did check to see what happened to the the property. I found out the agent bought the property for what my offer was.
As in any dealing when you deal with people make sure there is a Trust between you, you will need to find that one someone who is really looking out for you.
My advice is to use caution, do not be taking in by a pat on the back and a smile. Do your due diligence with any Agent you deal with, when you do find that one then go from there.
John $Cash$ Locke
$Cash$,
Wise words indeed. I see your point and I agree with you now under the clarifications you've mentioned.
Andrew
thank you both for your responses. I just purchased the Ron Legrand course "Red Course". There maybe some more good information in there to be discovered. So happy RE investing and good luck,
thanks, Louis
A quick comment. As a Real Estate Investor/ Real Estate Agent. Fist of all if an agent steals your deal you should turn them in because it's illegal, second if you want to do an assumable contract I personally would have an attorney write up the contract. Keep looking for a good Realtor because we do exist.
Hi Alll,
I'm supposed to be working but I just had to jump in on this one. Just lost my 4th newbie agent to depression he said he reeealy wanted to be an investor so we'd work together blah blah... He would have been great at it too---maybe he will still rally but for all the time I've spent with agents I'm DONE---lost 40k in deals in 2 mo to similar events as John Locke and another 20k because an agent was afraid he was going to be doing something wrong--dragged his feet and I missed it by 1hr---for the same price as I was offering. WHATEVER!
I know there are agents out there I could work with but hey time is too short--I'm hiring myself some kids and we're hitting the streets---they're paved with gold ya know. I'm finally convinced I just want to get my own deals!!!
Best to all,
Mel
Louis,
I tell my investor buyers they should have a back up plan. If your plan is to flip quick it shouldn't be a problem if it really is a good deal. Ex. You buy for $40,000 and agree to resell for $80,000 but the buyer backs out last minute. If this house is really worth $80K you could resell in an hour for $60K. Make sure you know lots of other investors in the area. That way you can always unload a good deal. I also encourage my investors if they can't float the payments to maybe rent it. If the rent won't back up the deal how good is the deal?
When you sign your offer you can simply sign it Louis Montes and/or assigns. If you get questioned just say your wife/brother/friend might want to buy it with you. In MA the Standard Purchase and Sale has a clause granting you the right to assign it. And even if all of that fails, since you have a contract to purchase, you have equitable interest, which means you can sell your interest. It really depends on the state you are in but I can't see this being a big hurdle.
great discussion ....
Let me start with 'miketodd Newbie'. Mike, I believe in the State of Florida, agents mostly use the Standard Purchase Agreement. So if I want to do an assumable contract, having an attorney write up one probably will not work since the agents will not want to use that one. They want to go with the standard one. At least that is how I understand it. Please correct me if I am missing something!
'mel Junior Investor', I am trying to hit the streets myself but first I need to buy a used car that I can put miles on and drive around. Not wanna use my car. Good luck!
'debratherealtor Newbie', I really like the solution you gave me "Louis Montes and/or assigns ...". I think that should work. However, as far as "selling my interest", I have to find out how that works in Florida. Any Floridians out there???
Please keep this coming... this is a great topic ....
thanks, Louis
If you are going to work with an agent, some of the best ones to work with are the young, hungry ones. Most of them do not understand creative real estate, but agents fresh out of school are more likely willing to learn. Agents who have experience and solid clientele may not care to learn how to structure a deal creatively even if they had the time to. As a part time agent myself, I love working with investors just because finding a good agent who understands CREI is so difficult. The potential dividends can be huge!
Louis, ref realtors wanting to use their contracts, that is nothing new... they want to mainly protect themselves!! What you can do is take the offer and attach it to their contract and require BOTH of them to be signed. Also, you can make an offer directly to the seller without the agent involved if you have a problem with the agent. On top of that, you can make it a requirement that you are present when the offer is presented. Your last option is.... move on... if this agent is making it miserable for you, it will be just as bad for others, and at some point the listing WILL expire.... Good Luck!! Christian
louismontes;
I am also in FL (Bradenton/Sarasota) but unfortunatley am too new to offer any help right now. I am still on the quest for knowledge so I can make my first deal by 03/01/03 (my goal date). Good luck, if I get any good FL info I will pass it along to you.
.
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drgnstr[ Edited by drgnstr on Date 02/06/2003 ]
well, I think I have got some good answers from all of you. So thank you very much. Now all I need is to get hold of some hungry and new agents. I am planning on faxing letters to rela estate companies looking for the frshman agents. Can anyone think of better ways to get hold of them?
drgnstr, how about you? do you know anyone like yourself in Tampa/Clearwater?
thanks, Louis
I am a newbie realtor AND investor in St pete.
Hi everyone,
I just finished listening to some CD course and it was talking about RE agents and the kind of contract. It pretty says that with RE agents, we have no choice but to use the Florida BAR Standard Purchase Agreement. It also says not to use the "And/Or Assign to" in front of our name because it could raise red flags with Agents and it also tells the agent that I am a newbie with no money. I says that the contract usually do not contain anywhere that says the contract can not be assigned, and that means you can assign it if you wish. Unless the contract says that the contract can not be assigned, it actually implies there are no issues with the assignment.
What does everybody think about this? Is this course "out for lunch"?
thanks, Louis
jack-fla Newbie,
thanks for your response ... I really like to talk with you some more. I live in Tampa. Would you like to chat. I can tell you what i had in mind and you can tell me what you think. Please let me know,
thanks, Louis