Hello Everyone,
I am new to REI. I really don’t see the purpose of bird dogging when I can get straight to wholesaling, but I am confused about the best way to find properties. Can I use a Real Estate Agent, seems like it would be the best way to go since they have access to MLS.
However, wouldn’t using an agent cut into my profit, or would the buyer I find pay the agent his/her commission or is the seller paying the commission? Also, why would a RE agent show me a great deal when they can snatch it up themselves instead of collecting a tiny commission Help.
Also, would any agent really work with me knowing that I only intend to tie up the property and assign to an investor.
I heard someone on this board say it really pays to get a real estate license then you can wholesale the deals directly. However, is this legal. How would this work. Help. I hope my questions isn’t too vague. .
Call me crazy, but rehabbing seems to be the easiest way to get into REI, although the riskiest. However, I can’t start in that route because I have no money and poor credit.
I don’t know guys. I just really want to be successful and don’t want to lose any money in the process. I’m tired of working for people. I’m ready to have my own.
Your on the right track! Keep increasing your knowledge.
Yes I would get a real estate license, then you can do your own deals and be legal.
Try finding a mentor that is in wholesaling, another way to increase your learning curve. Ask around by increasing your circle of influence. It can take a lot of time.
Be DO Have !!!
REO:
Great questions.
#1- The seller is the one that pays the commission, not you. Here is the deal. You need to build a relationship with a realtor that will give you MLS Acess. Then you log on everyday and play a game called “MLS First Day Out”. The way it works is as follows:
-You log on everyday and search “Days Back 1”
-You pull up all properties that meet your criteria: “fixer-upper”, “REO”, “Vacant”, “Probate”, etc.
-You then map out the properties and go look at them the same day.
-You send over what you want to offer to your realtor the same day and get your offer in.
-If you come across a property that the price is too good to be true as will happen, drop everything
you are doing and drive straight to the ‘listings agents’ office and have them present your offer.
-Make sure you log all your offers and implement a good follow-up system with the listings agent of
the properties you offerred. Remember, the fortune is in the follow-up!
The above system works great in a depressed market. The key is getting out and offerring the same day and following up as mentioned earlier. If you can start building relationships with the REO Agents that would be a plus. This can be accomplished as follows: When you offer on their properties, even if your offer is not accepted, call them up and ask them the million-dollar question: “What else do you have coming up?” If you can get access to properties before they are listed, you will be very successful in this business.
#2- I would not worry about real-estate agents from taking your deals. By using the system above that I have described, it will prevent this. Besides, most agents don’t do rehabs! Get your name out there to all the agents in your area that you can close quickly and they can write the offer for you on any deals they come across also.
Finding properties thru the MLS is only one of several ways to find deals. You should work at least a couple different ways to find deals:
-Direct mail to “absentee owners”
-Driving for dollars
-HUD
-VA
-Probate
-Trustee Sales
-Internet
-Pre-foreclosure
-etc, etc, etc,
So get out there and get some deals! I would recommend you purchase a course on this
site on ‘wholesaling’ as it will save you a lot of time and effort. Education is the key!
Best Regards,
Jeff Adam