Hi Everyone,
I am hoping that some one might be able to help me.
I am looking for a Script or Letter that I can sent to real estate Agents explaing to them Lease option to Purchase and trying to get them to contact me when a client might consider to lease their property.
Any Help would be greatly appriciated.
I know Wendy spoke about it in her Telephone Conference.
I don’t want to spend $ 750 for just that.
Thanks 8) 8) 8)
This is somewhat open-ended.
Your first thought would be why would they want to provide this to you?
What is in it for them to do this for you?
What forms of Lease Option strategies do you plan to use?
crazyworks…I’m curious how exactly do you foresee using this? ???
As a Real Estate Agent, why would I want to refer a lead or listing to you for a LTO, which doesn’t constitute a sale. Would you be willing to pay for such a lead or deal? A bird dog fee of sorts?
To get something like this from an agent there’d better be something in it for the agent or broker.
Good Luck!
Do you mean you havn’t heard of a real estate refferal.That is so common all over north america
You send a client to an agent if they are interested in buying or selling something outside your area and if they make a deal with that client then they are suppose to pay you a portion of the fee that they make.This is real estate 101
anyway
take care
albert
You’re talking about agent referrals, not investor referrals.
If I was to refer an investor to an investment opportunity, cutting myself out of the transaction, how would I get paid for brokering the transaction?
Bird Dogging is one thing, and with an agreement or contract the bird dog gets paid.
But to only pass along the information, “hey I know where you could make a great deal, by going directly to the seller or buyer”. How is a Realtor to make a living? Advice is free, but doing work for free tends to put one out of business.
I do enjoy providing advice or guidance to people, it doesn’t cost me anything except for some time. Yes, time is money, but I’m not doing any work, work which I could be paid to do. I could be a paid consultant, providing expert advice, but I’m only providing little bits of advice or guidance. Like I said I do enjoy helping people, but I’ll only put you in the right direction, to make your own decisions.
Just like allot of others who are part of this forum, they will not give it all away for free, they’ve got their own secrets to the business, which have made things, deals, and transactions easier as they’ve learned. Some of these people have paid thousdands for this information, and to give it away for free, kind of lessens the value of this information they’ve paid so dearly for.
Just my thoughts…
Good Luck!
Here’s a way to find leads for LTO.
Go through the Sunday “Homes for Rent” section. Call and ask the homeowner if they would be interested in selling their home as a Lease To Own. Some homeowner/Landlords may be tired of dealing with vacant property, rental issues, etc.
Its better to speak directly to the owner of the property to accurately explain “the Lease To Own” and how it would benefit them.
If I was to refer an investor to an investment opportunity, cutting myself out of the transaction, how would I get paid for brokering the transaction?
If I’m not mistaken; an agent can earn a commission on a lease-op (not so?). Afterall it’s a (possible) sell sometime in the future. Moreover, can’t an agent charge a fee for their services…even if the optionee doesn’t exercise their option? I’d like to investigage this topic more thoroughly.
Regarding contacting agents via form letter; in the area in which I live–there’s a company that prints flyers, and the like & delivers them to various real estate offices in designated routes.
You could call a local real estate office & ask if they have such a vendor?
A sale is a sale, to transfer title of property from one entity to another. A lease to own, the title does not transfer until the end of the option period or financing becomes available.
What’s the duration of time? 1 year, 2 years, more? A real estate contract has a specified life to it.
If someone wants get on the list of investors with a real estate agent, just prepare a letter of introduction, a business card, and the types of properties you may be looking for (and don’t tell them anything, you must be willing and prepared to move immediately if it meets your specified requirements that you related to the agent, or they’ll move on to the next investor). If they have a property that won’t move on the market, maybe the seller would be willing to consider an investor’s offer.
An agent is hired to provide solutions to the seller. If you as an investor tell the agent, you want fixer uppers, they find one for you, a good deal, and you aren’t financially prepared to take the deal, your name moves to the bottom of the list, and it’s hard to move your way back to the top. Think about it… They call you because they’re trying to provide a selling solution to the owner, and they’ll get the investor a great deal, but the investor must be prepared to accept it or reject it quickly, so the agent can contact the next investor.
My advice to you as an agent, loan officer and investor, go to the seller before the agent does. Prepare a presentation like an agent does, and present it to the seller, and convince them they’ll do better selling it to you, then anyone else.
Good Luck!
Kirk
I’m probably going to be chastised here by R.E. agents, but here goes. Most R.E. agents I have encountered are concerned with their own commissions before their client’s(sellers) needs. They are self-serving 1’st. What gives me the right to say this? Well, I’m not just saying this - this fact is based on experience. We had owned a well known Real Estate Office in Central NJ for over 20 years with well over 100 agents working there at one time or another, Thats What gives me the right to say this! My Entire family are either brokers and/or agents (Total of 7). I have seen it first hand. Most are dumber than a post and when it comes to the creative side, they always ask “whats in it for me”. Now don’t get me wrong, there are a few good ones out there as well as a few smart ones. They need to be educated by you! I have contacted many agents in my investment career and once they hear INV… - you are pretty much out of the picture. Stupid move on their part!!! But hey lets face it - they must not need your money. They assume all Investors Low Ball everything, Want to negotiate the sellers commission to them, etc. In some cases We investors have only hurt ourselves doing this. If they were told upfront that you wouldn’t waste their time and only expected them to present your offers and that many get turned down but you do end up buying 3 or 4 houses a month that way - Some will entertain that. If they choose not to - Move on - They obviously don’t want to make any money. I don’t know where you are located, but in NJ 3 or 4 houses per month can add up to about 50K - 70K in commissions. Their loss - don’t waste time with them. Let them be stupid. Eventually word may get around and they may contact you. Read the other posts that were answered to your question and you will find the solution. Fix the R.E. Agents problem with your deals. When I deal w/realtors I don’t do a Lease/Option I do a lease/Purchase since the option may never be taken. They are guaranteed their commission. Just my 2 cents worth.
I have also tried to buy my personal residences by contacting agents if the house i liked was listed. As soon as they found out I was an investor, I don’t even get a phone call back or e-mail. So I find another agent and buy that house thru them thus cutting their commission in half. This is how I let them know how stupid they were in a non-chalant way - maybe they will think twice now about the mistake they made. They could have had it all!
If they only had their clients interests ahead of their own, they’d be much farther ahead and their clients would be happier.
Penny Wise and Pound Foolish - Good for them - Work twice as hard for the same amount of money!
I think Forest Gump said it best “Stupid is as Stupid does”
ps. by the way - I’m the only one in my family without a license…lol and I work with only a couple of broker/agents that I had to train. These guys give me first crack at everything and collect full commissions. Yes they are Happy to do business with me. The Sellers have paid my agent about 35K so far this year.
In fact because he does this for me, I even listed my house with him to sell (which normally - I’d sell on my own). One of his competing brokers wanted to co-broke on my house as she had a client that was interested. This other broker also had a house listed that I wanted to buy. I made a fair offer (not low-ball) and She put her interests before the sellers (whose house was on market for over a year) and counter-offered in a very self-serving way. Needless to say, I didn’t get the house. She called my broker to show my house with her client. When my broker informed me of this, I simply called her and told her that I had no interest in doing business with her or her company and didn’t care if she had a 1,000 clients that wanted to see my house. When she asked why - I told her. End of story. By doing this, I probably lost out on some future business with that company, but I was so enraged I didn’t care. Guess who’s Penny Wise and Pound Foolish now…lol - Oh Well.
KEC
“I’m probably going to be chastised here by R.E. agents…”
Consider yourself chastised…my experience is completly opposite yours.
Agents are individuals from widely diverse backgrounds, specializing in many different fields.
Most (successful) agents are highly educated and knowledgeable, and therefore, expect to earn a commission comensurate with their experience.
Some specialize in working with investors (they’re investors themselves), and could teach the most savvy investor a thing or two.
I probably lost out on some future business with that company, but I was so enraged I didn’t care. Guess who’s Penny Wise and Pound Foolish now…lol - Oh Well.
Remember the old commercial; “never let them see you sweat?” It’s the same in real estate investing…never…ever become “enraged.” Smile when you don’t mean it, thank people for their time, and expect to pay professionals fair market value for their services. You’d be well advised to leave the “tude” @ home.
Call Brokers & ask if they can put you in touch with agents in their office who specialize in working with investors…they’ll be well worth the commission.
Never, ever go angering agents…word will get out & you’ll only damage your reputation & investing future.
Thanks infowell, I knew it was coming…lol and I agree with you some are excellent-I work with 2 now. Most however in my experience are not. I find most know how to sell R.E 1 way and any other way upsets their operating method. This is my experience tho and remember my family operated a very successfull R.E. Agency in Central NJ. The successful ones were most excellent and do not wish to take that away from them - they have earned it. Would you say most are successful - I bet not. It’s the same in any business, the cream goes to the top.
Additionally, I think you inferred, but maybe not regarding the payment of commissions. I pay all my Realtor Brokers in full and have never negotiated a commission - why should I. They deserve to be paid as anyone else would. If you were not inferring this, then I apologize.
Additionally, I was purchasing this home for myself., and the Agency and agent my broker was dealing with had no idea I was an investor. But you are still correct and as I stated freely In this matter I was the one who ended up Penny wise and Pound foolish. I know this, realized it and probably have lost some future business with them.
It didn’t matter to me at the time and I know it was not the right move to make. I will have to pay for that in the future until I reconcile. You however delivered the message I was trying to but delivered it better than I did.
I am not afraid to list my mistakes and hope others learn from them.
Hi Everyone, I’m new to this site but have been on a couple of others for a while. I like the points on the RE Agents, but let me get to the gist of crazyworks question again:
I am looking for a Script or Letter that I can sent to real estate Agents explaing to them Lease option to Purchase and trying to get them to contact me when a client might consider to lease their property.
OK so arguably L/O is not in the interest of RE Agents. So what script or letter would one recommend using in approaching an RE Agent? I have told RE Agents what I am looking for in terms of price, location, and condition. I have asked them to contact me if they find something…but not many have called.
What has been successful? I would like to work with Agents but find that many of the truly distressed properties never make it to their doors either. Any thoughts?
Scogar-
Sounds like De-ja vu all over again… 
1st) As IWINUWIN has so aptly pointed out - not all agents are created equal. You’ll have to do your homework & find out which agents specialize in working with investor’s.
2nd) The Agent will want to know how they’ll be paid. Once that is made clear to them…they’ll be more willing to bring you potential investment properties. $'s will put you @ the top of their list.
OK guys, as an Investor and RE Agent, I was an Investor in Real Estate long before I became a licensed agent, only because I wanted to do my own deals and help others do what I was doing, and make some money doing it.
But as it was said earlier, most agents are not investors, and their only means of income is selling a home, whether it’s representing the buyer, be it a first time home buyer or a seasoned investor, or listing and marketing the seller’s home. They do not get paid until it’s closed. According to the National Association of Realtors, the average Realtor only makes $37k/yr Now, here in Austin, TX there are 7,000 licensed real estate agents, and estimates are only 5% of them are actively working as RE Agents.
I will help any investor with anything I can, including providing them with listings, helping with negotitations, and even help them with the cash flow analysis or ROI projections. And yes I get paid for doing that, by the seller of course. I do provide other services, as far as finding financing, hard money lenders, or even provide notary services. I’m not going to get rich doing it, that’s why I have rental property of course!
Remember, most RE Agents aren’t investors, and some of them are not even home owners!
I was an Investor first, then I got my license in RE and Loan Officer, to take out the middle man, I was tired of paying for what little they did, not I can get wholesale loans, commission free deals!
Good Luck!
…They do not get paid until it’s closed.
An agent can be paid as a consultant before, after, or during a sale (no?).
Moreover, an agent could agree to forego their commission until some future date (say when an option is exercised)–no? I would imagine the agent would want additional incentive to do so, and other assurance they could collect a fee in the event the option wasn’t exercised.
If I’m not mistaken–the agents fee or commission could be netotiated at a later (or earlier time) than closing as long as it’s legally permissable.
I was an Investor first, then I got my license in RE and Loan Officer, to take out the middle man, I was tired of paying for what little they did, not I can get wholesale loans, commission free deals!
My experience is the reverse–I was involved in real estate for many years before testing the investing waters. As such I find your assessment that Agent’s & LO’s “do little” to be caustic and highly inaccurate (albeit a popular public sentiment–we American’s just love to bash each other). My knowledge & experience has made my clients millions. I know LO’s who’re in the same boat…saving their clients millions over the years.
Agent’s are much more that glorified taxi-cab drivers. >:(
As you speak directly from your experiences, I speak directly from mine.
Opinions… you know what they say about opinions. In my eyes, my opinions are from my experiences and observations, as are your I’m sure.
Good Luck!
Kirk
This will be my last response to this topic. I’m a quick study, and do not wish my valuable time taken up debating obviously mistaken viewpoints written with a bias slant. I’ve posted little to date, but I’m quickly learning some have a distinct distain for real estate professionals.
I was thankful to stumble across this site, and desired to share & learn. At this point…I think I’ll learn more, and share less.
Opinions… you know what they say about opinions. In my eyes, my opinions are from my experiences and observations, as are your I’m sure. .
Let me ask this; with such an obvious contempt for LO’s & Agents…how do you manage in the business?
Do you have clients? If so…don’t you feel you’re doing them a disservice by doing so little, while charging so much.
Do you perform both duties simultaneously? (I don’t…I’ve built my real estate business upon a strong appraisal foundation).
How do your coworkers feel about you (assuming you have coworkers). Are they aware you feel they “do little?”
Overall Synopsis: Those who are seeking advice, and truly want to invest, must realize that real estate professionals are an invaluable asset.
Those who’re suspicious, untrusting, antagonistic & disrespectful of real estate experts; will only damage their investment futures.
Infowell
Associate Broker
Certified Appraiser
Apparently you’re reading between the lines, when the message I am attempting to portray is in wiriting.
I learned about RE Agents when I was an investor, and by my lack of dealing with agents at that time, was dealing with agents and loan officers with a lack of experience in investing.
I myself as an agent now, and a loan officer now, do everything I can to help investors learn and grow from the experience, and not make the same mistakes I did.
You’ve apparently got a beef for the experiences I have had dealing with RE Agents and loan officers, have you ever had a loan officer walk off with $5k of your own money? I have, have you ever had a RE Agent not provide you with full disclosure, or the proper documentation and forms required by the state law? I have. So now I do my own transactions, when and if I do them.
My co-workers love me, because I understand the business, and help them pursue it in a way to help them become more successful. I’m in it for the teamwork. I certainly don’t make my living from Real Estate, I make it from investing.
So, now if you were to read what I have written, don’t read into it, and understand my experiences are mine, not yours. And I have learned from my mistakes, not your.
Just let me share my expereinces with the other investors. I am an investor first, and a RE Agent and LO second.
Since you don’t know my territory, or the people who work in it, defend your own territory. Texas is it’s own world with it’s own rules apparently. I’ve learned them, and made my own mistakes along the way, and I share them on this site, so others, will not have to make the same costly mistakes I have made.
It’s advice it’s free!
But can save you thousands. And I’m not charging for it… should I?
Good Luck!
Kirk
Here is a letter for agents regarding shorts it may help guide you.
Venture Proposal
Traditionally, Realtors and Real Estate Investors haven’t been involved together in real estate transactions. Real Estate Agents often see Investors as a group of strange people doing strange things with property. Investors have often seen Agents as competition. However, times have changed. Today’s real estate market presents a great opportunity for Realtors and Real Estate Investors to work together.
What’s going on in the market? We all know that the number of foreclosures continues to rise across the nation. And it’s getting worse. Over one in ten borrowers with a prime loan is now delinquent or in foreclosure. In most areas property values are substantially below what is owed. This results in thousands of properties in need of a short sale.
What is the impact for Realtors? Many Agents walk away from short sale deals because:
Homeowners owe too much.
Their expectations of the price is too high.
Market times are too long.
Little room for commissions.
Just don’t do short sales.
Don’t know how to do short sales.
Can’t submit a short sale without an offer.
Illegal for an Agent to represent a seller on a short sale in some states.
Often lose out because a prospective buyer won’t wait for the short sale transaction.
Banks want Agents to cut their commission rate.
In some states a Realtor runs the risk of being accused of acting as an attorney without a license when they represent a seller on a short sale.
Although a small number of Realtors actually do short sales, I’ve heard they’d rather have a root canal!
Working with me can overcome many of the challenges Realtors face on these short sale properties.
I understand the short sale process.
I have a background in negotiations.
I don’t mind doing the paperwork!
When you meet a homeowner who is in pre-foreclosure and needs to sell, you have someone you can refer them to.
You take the listing.
I contact the homeowner and collect the necessary documents.
I submit the short sale package to the lender.
An all-important Purchase Agreement accompanies the short sale package. This is the best way to get a Loss Mitigator’s attention!
While I’m negotiating with the lender, you do what you do best: market the property and find me a buyer.
The short sale gets approved by the lender.
We sell the property either by way of simultaneous close or double escrow to your buyer.
You collect your commission!
In today’s market we need to get creative. Working together as I’ve laid it out above can be a win-win situation. We help the homeowner out of a difficult situation. You can accept a listing you may have otherwise turned away. (In fact, you may even want to market especially for homeowners in pre-foreclosure!) You end up making a sale and earning a commission you may have otherwise lost. Hopefully, if the numbers work out I earn a modest profit in the end. With the opportunity that’s out there, we can do this over and over again!
If you want to add this strategy to what you’re already doing let’s get in touch. Contact me with your deal, and let’s get started!
I look forward to working with you.