so I 've read and listened to quite a few homestudy courses and I am ready to look for deals -got my “area” staked out and get know it better.
I have started introducing myself to real estate agents and telling them what I am looking for and that if they ever have someone fitting that situation I’ll be their buyer. OMG! Hold on to your horses…I got answers
Why would I EVER suggestion this [lease option] to my client? there is just too much risk involved…!! That is just impossible>>>> or the best line ever: <<<since you are an investor put the 20% down - that’s what investors do!>>>>
In the meantime the seller can’t sell the house because with the realtor fee the house is well above market value. so what do they [agents] do? they make the sellers reduce their sales price (mind you they still get their full 6%) so that as stretched as the seller is , he will have to come to closing with a check…
You know , there is my frustration apparently not to be able to get your message across but there is also the strength I need to stand up against someone who has been in the industry so much longer than me and tell him or her he or she is full of it and then dust myself off and continue with my plan.
thanks for “listening”
I’m not sure what you’ve offering, But it sounds like you’re trying to buy property with no money down and without bank financing. It can be done in the right conditions I suppose. If you’re dealing a lender,many today are requiring that you have some money in the deal. Seek out a buyer agent that has experience with investors and investment properties. As an investor, you want motivated AND flexible sellers. If you your offer is rejected, don’t be rude or burn your bridges. An unmotivated and non flexible seller may become one in the future.
All right, I have to chime in here as an agent … though I’m not a “Realtor.”
First of all, if a buyer came to me looking for similar type deals, I’d be straight up with them and say that if any such deal came along, I would snatch it up before my buyers did. Now, not all real estate agents have the same goals as me. But to be truthful, I’m not sure how successful investors would be if all they used were agents to find the right properties at huge discounts. Due to the nature of their main tool to find properties, the MLS, the houses found there will be at market value – with some occasional, RARE exceptions.
As for the commissions, – brace yourself here – yes, we agents do work for a fee. If a seller has enlisted the services of an agent to market their property (at the agent’s personal expense), and to put it on the MLS, whose membership comes at the personal cost of the agent, then you can understand how we might feel entitled to be paid for such services.
I’ve known agents who have reduced their commissions in order to see a deal get closed, and you’d be surprised how often we get burned in the process. Here’s a typical example: Listing agent agrees to reduce their commission so a seller can get a deal closed, knowing that the agent will more than cover the loss when that same seller uses them to find a new property. Seller promptly goes out on their own to find a property “For Sale By Owner” – agent takes it in the rear.
I would think most agents would be more familiar with a lease option. That certainly seems to be a common enough technique in my area. Could it be that introducing yourself as an investor is turning off the agents?
What if you introduced yourself as a buyer who wanted to rent a property for a couple of years until you could amass enough money to purchase it? Would the agents give you a more friendly reception with this approach?
I always thought that RE agents liked investors more because they do more deals than a typical homebuyers. It seems to me that if you have a specific criteria, the agent spends less time looking for properties.
If all you’re doing is blowing off steam, that’s cool. We all need to do that once in a while. If you would like some help, folks would need to know a little more about your area and your strategy.
Agents and realtors can come to the table with a serious conflict of interest. If they get 3%, then 3% of $200,000 is twice as much as 3% of $100,000. An agent could act as a buyer’s agent and as a sellers agent, and take away a commission from the buyer and the seller, so it‘s preferable to them to sell you their listings. They usually act in a manner that greases the wheels of the deal. So, if it is a bad deal due to overpricing, deferred maintenance, poor construction, bad area, whatever…many will prefer to put lipstick on that pig and tell you to pucker up. Agents bring a level of expertise to the table, and a good one is well worth the commission that you pay, but you will be hard pressed to find an agent who understands what you are looking for as an investor, or one who can help you achieve your goals as an investor.
Other investors, on the other hand, know exactly what you are looking for as an investor and how to get it. Try doing a search on this website and others like it for “finding bargains” or something like that. The truth is that the best value that you can get from a deal is using strategies that are not commonly used, and buying properties for a lot less than what they are worth. You don’t get these kinds of discounts hunting on the MLS.