I’m trying to build a really solid set of players for my team. I want to be able to try out more than one realtor to see who know’s the areas better, who has better contacts on deals the whole nine. But they are killing me with those contracts. Do you guys have any idea how I can get around those or if there are better ways of finding good deals. I hate going through all this work going to the courthouse, talking to landlords, and everything else I do to find leads then forking over cash to my realtor because I’m under contract. Any advice.
What kind of contract are you under? I assume a buyer’s agreement, but I’d assume that it only says that you can’t buy a house with another agent. That shouldn’t stop you from working out deals directly with a homeowner.
The thing is I’m still trying to build my team and find a realtor who best fits my needs. What i would like to do is have a bunch of realtors just go out and find deals. That way I can look at all their efforts from that make a decision on who I want on my team. You know like a realtor tryouts.
If you don’t like the real estate agent’s agency contract, don’t sign it.
You refuse and the agent will work something else out with you.
If he brings you a deal or shws you a house, you owe him the commission, but I would never sign anything that said I owed him a commission no matter where I found the hlouse or who showed it to me.
If nothing else, tell him you will only sign the agency contrat for an individual house and you will sign a new onw for every property.
Agents are starving to death right now. He isn’t going to let a buyer walk way just because he can’t compormise his own procedure.
In business, the one with the money is the one with the power. In real estate, if you are the buyer with the money, you have the power, and the agents will do whatever it takes to coax you to buy from them.
I see what you’re saying Rice. Fortunately my realtor is my wife so her interests are obviously the same as mine. What you want to do is find a realtor that is also and investor. They’ll have an investor mindset and have a better idea of what a good deal is. Join or local REIA. I guarantee that at least one person in the room will be a realtor. Also keep in mind that just because the realtor is an investor doesn’t mean that they’re going to keep all of the good deals to themselves. There are a lot of deals out there and they won’t be able to buy up all of them.
As far as them finding you deals it will probably happen one of two ways. First (and best) they know of a house that is about to be be listed before it hits the MLS. If they know that you’re an investor that will perform you’ll get the call. Second they’ll see a deal already on the MLS. It’s been my experience that there are no deals on the MLS, only opportunities. The deal has to be made and unless you have a realtor with an investor mindset they won’t really see the opportunity to begin with. So your best bet is to find a realtor/investor for now. Build up your reputation as an investor and realtors will be bringing the deals to you directly or to your realtor b/c they know that your realtor has a client that performs.
This whole “build your team before you find a deal” is ridiculous and counterproductive. Spend your time finding deals. The rest will follow.
I make it clear to all agents that I will sign a limited exclusive agreement for any viable deal they find. The agreement will state that:
They represent me on that property only.
Seller pays all commissions (assuming this is a “normal” deal)
I’m guessing that since you are probably new to this, the realtors believe they have a live one and can get you to sign a broad contract to represent you on any deal, whether they find it or not. Make it clear to them you will not sign these and that you want as many people as possible, realtors or not, looking for you. They will understand.
I think there’s nothing wrong with getting a team assembled before you start finding deals. You don’t want to be scrambling around trying to find the proffessionals you’ll need to get a closing and do due diligence in a timely manner. It’s not that hard to assemble a team. If you join a local REI club or landlord assoc. , you can get referrals for the people you’ll need. Then just meet with them and see if you can work with them or not. Don’t overcomplicate it. Good luck.
What you want to do is find a realtor that is also and investor. They’ll have an investor mindset and have a better idea of what a good deal is. Join or local REIA. I guarantee that at least one person in the room will be a realtor. Also keep in mind that just because the realtor is an investor doesn’t mean that they’re going to keep all of the good deals to themselves. There are a lot of deals out there and they won’t be able to buy up all of them.