First offer today

Danny the Great shares my sentiment about agents. Im not putting them all in the same box (dont have a box big enough), BUT in this situation I always go around the agent (or use a BA occasionally). I dont want them representing me to the seller EVER. Just my experience…19 months on the market? is that arizona oceanfront?

good luck,

lance waddle
realvestors

lol dan…

i’d say that burning a bridge with a realtor like this is okay, but just don’t expect them to cooperate with you in the future. and in small towns or counties, you start burning a bridge with one and the next thing you know…domino effect.

it’s just better to move on cordially. if someone is grossly incompetent let the board of realtors know this. but rudeness or general incompetence (runs rampant among realtors!!!)…if i were you, i’d just get used to.

become proficient in what you do and what you want to accomplish, then go out and get the right people to help you.

i’d say that this takes…i’d say a minimum of 6 months…if you’re very outgoing and a quick learner. if you’re a noob - and you start talking noobese to an experienced realtor who’s good and is making a ton of money and is an investor themselves…they may give you the brush off so to speak and you’ll lose an opportunity…

of course be persistent and approach the good ones again if this happens…when you’re more ready to really do business.

i mean, i can tell you this…after i get my realtors license and do a dozen deals or so…it’s my nature to help others (i have a Masters in counseling) - but most likely, if i’m making money and there’s business to be done…i’m not going to hang around and hold anyone’s hand.

time is money!

We would need a little more detail on how you structured this deal. For instance on a lease option, how does the broker get paid? 12 months from now? He might not even be in the same business 12 months from now. How much money are you bringing to the table? Will the monthly lease cover the current mortgage, taxes, insurance, etc? What kind of financials and experience do you bring? If you start to renovate and then run out of money, what happens then? Too many questions, not enough answers means it’s hard to sell the deal.

Also another option instead of going around the broker to the seller directly would be to talk to broker in charge of the office. That could also burn bridges, but at least the seller doesn’t need to know about it and that might get you some more cooperation from the listing broker.

I know burning bridges is looked at in a very bad light. But I think burning bridges (strategically) is a very smart thing to do in some cases. IMO, it’s best to blatantly disassociate yourself from some people. A dumb agent who allows their listings to extend for 19 months, then becomes insulting when potential buyers come around to offer their client a solution, is a prime example. That is rude and incompetent.

When contractors come to my properties to give quotes, if they show up with a Confederate flag on their truck, they don’t get the job. Same deal with tenants. Once I hired a plumber who on his first day of the job, wore a black t-shirt with a big marijuana leaf on it, they didn’t even have a chance to put their tools down.

If I am reading correctly here, you are trying to do an option on a property that is already listed with an agent.

An agent can’t get paid today for an option because there’s no cash, so it makes sense that he’s not going to push very hard for this. If you are trying to use “creative” financing with listed properties, I think you’re going to have a very hard time.

Also, am I reading you correctly that you intend to rehab a property during the option period? That is, you’re going to rehab it without actually owning it? If so, I would think long and hard about this. This is extremely risky. This business is full of risks, of course, but this one does not justify the reward that you hope to get.

I cannot speak for all states, but at least in texas, a broker/agent MUST present seller with all offers unless otherwise instructed by the seller. I would ask the broker about that provision and ask him where can you file a complaint about him to the commission. At least in texas, he could lose his license for refusing to present a client with written offer. Theoretically, he should not even advice the seller not to take the offer, he should only present it but they usually do influence the seller.

Now, some asked about the commission splits, the split ranges from 95/5 to 60/40 and such… what you need to look for is what else is offered such as minimum transactions per year, desk fees, training, who pays for training etc. The ones that offer 90/10 and 95/5 usually offer absolutely no training or charge an arm and a leg for them. I just joined a new franchise called EXIT Realty, they offer 70/30 split - $150/deal but offer free training. They also pay you 10% of the anual income of any agent you refer to them. If that agent makes $100,000/year, you get $10,000/year. (hey, mention me if you join them :wink:

As for disclosures, i don’t think there are set rules, but you have to identify yourself as an agent at least when you talk to a seller or buyer. This is really not that bad, but you are held at a higher standards i the eyes of the law and te judge will not side with you if there was a dispute since you know more than the seller.

WOW this one fired you folks up, yes i am a noob am the risk was worth it to me to fix it up. Also i did offer the agent his normal cut 3% and still would not pitch the deal. The only reason the house is not moving is the decor. And i could solve this for the home owner since i am in the flooring biz. Just trying to get in some where. Or should i just run an i buy homes ad???

His normal cut of three percent of what? You were going to pay him three percent of the current value of the house when you got the option? If so, that’s pretty risky, too, to pay a sales commission on an asset that is not even sold. And if you were talking about paying him later, when you actually bought or sold the property, agents are not in the business of taking commissions in the future like that. For better or for worse, they like their deals nice and simple: a seller sells, a buyer buys, an agent gets a check.

If I were you, I’d probably redirect my energy away from this deal and put the time into finding a handful of truly motivated sellers. Anyone who can sit on a property for a year while trying to sell it is not “motivated.” You don’t want to buy from people who “want” to see, you want to buy from people who “NEED” to sell–NOW. Choose opportunities where you can negotiate from a position of strength and without an agent to muddy up the water.

well depending on where you live - i think MANY realtors will have to become flexible in their approach to how they sell real estate - seller financing is picking up momentum and will continue to do so.

an example is, when i was spoke to a broker about 11 months ago - they would not consider holding a note for their commission…now, that same broker WILL consider it.

changing markets demand changes.