Using Realtors, I say do it.

I am a realtor so I am slightly biased, but my using realtor strategy is quite different then most. When I didnt invest myself, all I did each and every day was look at new listings and price changes for my buyers, when I saw something great I called them. This enabled my buyers to get good deals without having to chase homes all day. Many investors have full time jobs so they cant leave at 1 to see a home that offers will end on by 4. (in hopping markets homes sell the same afternoon they come out) This is the job of a good realtor. Many of my buyers would never even see the home or even the contract until after it was accepted. Then we would use our inspection time (Weasel clause) on the property and they would determine whether I had made a good decision for them or not.

I recommend that all investors develope this type of a relationship with a very good realtor. I do not advocate having your realtor make decisions for you until you have seen what they can do, or maybe never at all, but do have them watching the market carefully, daily for you. Oh, the bad part is once they see how much money they are making for you they may become investors themselves.

Onto my real realtor strategy, this is the one that I dont see anyone else talking about…

Using dumb realtors to your advantage. When you look at the dumb realtors out there, most dont know the slightest thing about investing. They will turn there clients onto anything that makes them a commission, without the slightest knowledge of what is a good investment and what isnt.

So how do you use these guys/gals? I put 5% (instead of the usual 3%)buyer side commisions on the properties that I am going to flip, then I personally call the dummies and let them know about my property and about the huge commission and how it could all be theirs. Then I sell him on why my home is such a great investment, so that he knows how to sell it for me.

I do this for my own homes as well as clients homes that are listed with me it works great. I do feel bad for their clients but they chose their realtor not me.

Eric Medemar

Realtor to Realtor, I find you mean, cruel and insensitive. And I love your style. Keep up the good work.

I was with you until you said you purposely use an inexperienced real estate agent to sell a bad deal to their clients. I like having a great relationship with agents, so would rather help them look good to their clients. That way, they’re eager to work with me on the next deal and will later bring deals or buyers.

We price our properties competitively and just take the highest offer. The idea of offering bonuses or high commissions is used by a lot of us, but I wouldn’t purposely mislead the agent. I’m unfront with them. If I really think the property is a great deal, fine, but I wouldn’t cross the line on my personal ethics for anyone or any deal.

The dummies? Get your appraiser friend to boost the value. Otherwise, good luck. Those days are over. This is passe. And this shows why I’ve said in my “expired” letter that re pros are not working for sellers, only themselves according to MONEY magazine.


It’s unethical and illegal to get the appraiser to “boost the value”. You risk him losing his license AND facing criminal charges. We’ve had several rings busted here in Texas recently where the agent, appraiser, and lender got together to sell bad deals to consumers.

Just like any industry, you have good and bad apples. If an agent sees a 4-6% commission and does a bad job for the client, then that’s the individual. I work around agents a lot and the bad ones tend to not last as long. I mostly see it on sellers who don’t really interview and choose the cheapest agent they can find.

If I choose the cheapest dentist and don’t really investigate or ask questions, I’d expect the cheapest job to be done.

Yeah, Dee…that’s pretty much the ‘book’ on this guy…make sure you wash your hands after dealing with him.


Amen to that. I go out of my way to not make friends with appraisers. Appraisers that I use repeatedly get the business because they do a good job, not because they boost the value. One transaction, or even a hand full of them are not worth the all expense paid trip to Club Fed. Besides, I look horrible in orange jumpsuits. Although I understand some of these “resorts” are updating their wardrobes to include pink. Not exactly my best color.


Boosting appraisals. Using a dumb realtor to take advangtage of inexperienced investors. Can’t anyone do anything right anymore?


We do, do it right. We use dumb agents to sell properties to owner occupiers. If the inexperienced investor gets caught up in that, oh well. Then two people were taught a lesson; the investor and the realtor.

Let me tell the few “pros” on this site something. I know you feel intimated and threatened by someone that might know something more than you do. Too bad. That’s life. Put the 20+ yrs in like I did.

If you want to debate any issue that’s fine. But keep the character assinations at bay. It just shows the rest of the group your clay feet.


I have never had to use any false appraisals or pocket appraisers to get a deal done. The deals I do are all clean, I couldnt afford to lose my license. They are really not even that bad for the people that buy them, the people are just paying high market, rather than middle market value. I

If you are a real estate agent and you are listing a home and use this technique to sell the home then you are doing your job perfectly. Your fiduciary responsibility is to the seller and nobody else. In fact if I have the ability to use tools like this and I dont use them. I would not be representing my sellers best interests, and that would be unethical to do as a realtor.

Eric Medemar

What market are you in Eric?

Many markets around the country have stagnated of late & listing a home on the high side–in hopes of finding an Agent that doesn’t know how to perform a simple comp search, and an investor that doesn’t have even a rudimentory understanding of market value–is a foolish waste of time in my book.

Successful Agents become successful by building a referral base…not one kill at a time.