The Proper Feeding Of Realtors

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From The July 2004 Issue of My Real Estate Newsletter;

This is a frequent complain against realtors. They have access to REO’s (Real Estate Owned by Banks because of foreclosure) and they are not that co-operative about showing you the properties or negotiating aggressively on your behalf.

I get emails all the time from members complaining about realtors not returning their phone calls or generally giving them a cold shoulder when it comes to showing or making offers on multiple properties.

Another big complaint is big realtors seldom send Pocket Listings to new investors even when the investors have given them pre-qualification letters, proof of funds etc.

Over the next four issues, I will be dissecting the strategies that I have used very successfully in building a powerful realtor network and getting pocket listings from them on a regular monthly basis.

If you want somebody to do business with you and give you “Most Preferred Status” , you have to look at the world from their eyes.

I am not a Realtor, and don’t intend to become one. Although I can tell you the advantages of getting a real estate license (unlimited access to MLS? Anybody ???) but that is the topic of next months newsletter. But coming back to being the devils advocate part – I have good friends in the Realtor community, some of them have made me in access of $50,000 in the last three months,

But reality is most of the investment deals put forward by investors fall through. Now realtors work on commission and whether you like the house or not, whether you can arrange the financing (cash or mortgage) or not – they still have to drive around, show you the fifteen properties so you can maybe make an offer on ONE or worse you want them make low ball offers on 10,15 properties– frankly speaking, most of them go pale in the face as soon you tell them you are a real estate
investor.

Now, if you think from a business perspective, the interests of the realtor are aligned with yours – you want to make money – they want to make money, so what is the problem??

This is the technique that I have used very successfully in the last two years to build up a team of kick butt realtors in Michigan (just a quick note – in any market there are may be 8 or 10 major Realtors active in the REO market, they are the ones who are getting listings from the big boys – the Chase Manhattens, Citibanks, Standard Federals, Fairbanks, Homecomings Financial of the worlds – the rest are fringe players having minor or no say with their lenders. The major players can save you on an average – these are my numbers - $5000 to $8000 per deals. If you do just four deals per year, that is an extra $20,000 to $32,000 per year.

Coming back, I suggest you treat the Realtor the same way that you would any prospective investor in your business. Meaning strive to build credibility.

Your goal should be to create an awesome impression to the point a Top Dog Realtor is running after you, faxing you, emailing you, calling you late at night to give you the hot hot hot pocket listings that nobody else have!

1 Comment

In the conference call on Oct 11, 2004, Mark gave a website address for finding realtors with Bank Owned Property listings. What was that web address? Didn't quite catch it during the call.
Any special/specific website in California ?
Thanks.