I know this might be a broad question, but I am hoping for some responses from a lot of you. I am new to the board, and already have gotten sound advice. So thanks everyone.
I’m asking the question because I am in contact with a Realtor. He has agreed to give me ARV’s for any home. But he asked what would be his incentive?He said, “their company specializes in Foreclosures. We have relationships with over 30 different banking institutions. We sell bulk packages for banks and individual properties as well. We currently have the largest contract in the state of Texas for Fannie Mae. I just recieved a package yesterday from a local bank with over 30 properties in the DFW area. Let me know if there is something we can help you with.”
I told him I am new and dont know exactly what incentive I could offer him. So he is going to call me and work something out.
So, I stated I am new but is it good to get with a Realtor like this, to make things a little easier on me? What are the advantages in dealing with a Realtor when doing Wholesales? Disadvantages?
Any ideas on what incentive I can offer him for giving me ARV’s?
The advantage is they’ll find you the deals and do most of the work including making the offers. The disadvantages are you’ll need a much larger desposit (usually like 1%) plus everyone else with MLS access can see the same deals you see, as opposed to dealing directly with a private seller where there’s usually no other eyes on the deal at all other than yourself.
ARV’s: he has no business giving to you, that nots his area of expertease. Your incentive to him would be to buy his listings. Calculate your own ARV, use a contractor if you need to but don’t beleive the realtor. Herbster
You’ll have to give a larger contract deposit on a listed property than a private seller. I’d give the Realtor one deposit and let him make offers on all your deals with that one deposit.
This is how I deal with Reators. I don’t!! Unless the property is an REO, I deal only with FSBO’s. There is enough of them out there so I don’t have to deal with the drama of Realtors.
This brings up an issue that I see quite frequently, especially on these boards…why do so many newbies insist on trying to get started investing in real estate with REOs, short sales, or listed properties? Maybe it’s just me. This is contrary to the fundamental advice given by every creative real estate guru I’ve ever read or heard. No offense to the thread author, I’m just saying…
Real estate agents and brokers can be helpful with a number of things, but if you are trying to bird dog (find and research properties for other investors) or wholesaler (sell your rights to a contract or quick turn a property) it is VERY hard to do it working through real estate agents. Can it be done? Yes, but it is tricky at best.
When I hire bird dogs to research properties for me that I intend to WHOLESALE (we’re not talking about properties I’ll be buying to keep in my own portfolio) I do not recommend that they look in the MLS or with agents.