I thought I’d looked at Carlton Sheets’ stuff a while back, but can’t remember what he teaches besides zero down investing (which I do myself). My investor agent had a client who was really cool at first. They were finally ready to place an offer, but the beginning investor read Carlton Sheets and now he wants to completely go around her to work directly with a listing agent OR go around both agents to make an offer to the seller.
He has no experience, but wants to present a one-sided offer to the seller that he crafted himself. Since his agent isn’t a lawyer, the seller would have to have a lawyer approve that contract. It had the seller paying for all due diligence as if they were “motivated”. We’re in a hot market and properties are flying off the shelves.
He’s looking on MLS for his deals even though we told him the best deals are off-market and we can find better ones through our wholesale network OR he should try to get off-market deals.
He chose an out-of-town lender who has been unresponsive so far. I’ve never heard of them and we wanted to get some referrals to see if they know what they’re doing.
It’s shaping up to be a bad deal for him, but he’s not listening to us, which we aren’t used to. We let him go, but he’s about to feel a sting. His new attitude seems to be that Carlton is his bible and he doesn’t need anyone else for his deals.
I started with the Carleton Sheets Course and I don’t remember him saying not to use agents. In fact, I started using agents and still use one for some of my deals today.
It sounds like this newbie is a know-it-all and he’ll simply join the majority of new investors who don’t make it. With an attitude like that, I’d say good riddance to him! However, I wouldn’t blame his ignorance on Carleton Sheets.
Dee often times Ive read where you say the best deal are found off the Market. would you clarify that for those of us who want to know.
If this person goes around your investor agent for this deal, and your agent is the one who brought the property to him, the agent is the procurring cause and is entitled to a fee regardless. Your agent friend needs to follow through to get paid.
Houses that are not listed with agents are the best deals out there. No one knows about them.
Motivated sellers that don’t have their homes listed will give you the most discounts.
Best deals are from motivated sellers that you get to first. Wholesale deals are good too as long as the numbers work. Houses on MLS are not priced to be good deals. Agents price them to get max price for the seller. You also have to consider the fact that it also includes fees for the agent commission. Every now and then a good deal will be on MLS, but it should be gone pretty fast.
MW, thanks. We don’t deal with newbies who won’t listen. It’s not worth the commission. We identified the property, so are procuring cause, but I’d PAY money to not have to work with someone who doesn’t trust our advice. He will learn the hard way.
Tien, so you find these motivated sellers through newspaper ads, bandit signs, and direct mail ; is that rght?
Dee - What exactly does your group do?
Don’t want this to get into “advertising” since that’s my pet peeve as a moderator. Here’s what we do and what any investor agent should do.
Evaluate deals to help you decide what to buy, what to pass on.
Give potential exit strategies and ways to maximize value
Be a market expert. Research and provide reliable comps/as-is/after market value
Devise creative financing strategies, put funding together
Help wholesale, buy wholesale deals
Let you know when you need an expert and help find them
Train investors, train agents on how to work with investors
Provide any other counseling and advice to keep you from losing money
Pre-sell rehabs or new construction
Partner with you on deals (50/50 split. We manage)
Just a few things I can think of off the top of my head. We also buy good deals. We’re moving some houses to some lake lots and will be rehabbing.
I’m going to do SF rehabs in Houston. Austin market is too hot.
Don’t forget about the REO’s that are always listed on the MLS. Super super deals with REO’s. That’s all we buy so I guess in our neck of the woods buying off the MLS is what is putting food on our table. Love those banks.
Dee - I think your group should transfer to Ohio. I’d love to work with you
You’re in a great state for REI. Ohio has one of the biggest and best REIAs in the United States. The annual convention attracts investors from all over the United States and Canada. There are a lot of opportunities to network with other investors here in Ohio. Join your local REIA and you should be all set!
I just bought 2 houses yesterday from another REIA member.
Yeah Mike - I took your advice several months ago and joined the toledo REIA.
I need to network better - it’s a little bit intimidating being a newbie, but I’m working on it.