How to deal with real estate agents

Most agents are not really that experienced when it comes to investment properties full stop. So when you start to talk about rent to buys very few agents will even understand what you are doing. 

I agree with the dark night you should letter box drop. Many people may see it as an opportunity of savings agents commissions. However many solicitors will not understand these strategies.

Hi Melissa & Paul

We've had a real estate vendor finance business since 2003 so here are a couple of quick tips that might help:

• In the community newspaper of the area you wish to operate in, place the following ad in the Wanted To Rent classifieds; "Professional couple looking for long term lease with view to future purchase. Call Mellissa & Paul 04xx xxx xxx"
• In the area you'd like t operate in, go and talk with the Property Managers, NOT the sales agents. When you get to the Property Manager, ask the question, "Do you have any properties for rent that came back to you after they didn't sell?"

Cheers,  Paul

Absolutely.

Had a Brisbane Solicitor on the other side who did not know of proposed lot or off the plan sales for land and told his client it must be dodgy and to not touch it.  Many solictiro's know 2/3rds of stuff all about property.

Hi Melissa and Paul

You might want to tap into Rick Otton's Podcasts (available from i-tunes) as there is one on "How to deal with Real Estate Agents" (I believe it's Podcast # 44). The Bootcamp will also give you a little insight on this topic, but I recommend when you attend that you ask this question specifically so that Rick/Ben can provide a more detailed response.

As the other folks have suggested, using the words "Rent to Own" when speaking with the so-called professionals is not the best approach. They will only look at you like you've grown horns out of the side of your head!  My husband and I tried that at a Money Expo with some Lawyers and they just laughed and sneered at us. They've got NO IDEA!!!!!

Rick recommends providing or floating an "idea", rather than mentioning a particular strategy. He also recommends offering to pay the Real Estate Agent his/her commission right up front – after all that's what they are most interested in, right???  More importantly you need to speak with the Seller to find out their SITUATION.  Ask them, what are they going to do if they don't sell the house?  If they say "Probably just rent it out" – Bingo….there's your in.  You could then tell them you would love to buy the house, but at the moment you don't have enough cash. If they're OK with it, you could pay them "above market rent" with a view to buying the property from them down the track when you get your bank loan approved. In this process you haven't mentioned Rent to Own and you've just floated an idea.

Cheers and good luck, Tamara

E: [email protected]

Hi Melissa

My pleasure re: the advice. I'm no expert by any means, but it pays to listen to the Podcasts to get all that info that you don't get at the Bootcamp. Hubby and I have found the Podcasts extremely valuable, especially for "Words that Work" and just to reinforce the strategies we learnt.

Assume you guys live in Sydney? We are based at Rosebery (near Mascot). We have tried to keep in touch with some of the people my husband met at the Bootcamps he attended. Just wondering if you and Paul woudl like to join our Network? It's always good to touch base with like-minded people. If so, just drop us a note to the email address below and maybe we can meet up for a coffee.

Cheers, Tamara

Email:  [email protected]

I start my conversations with real estate agents by asking if they have any problem properties, you may need to ellaborate a bit, for example "properties that have been on the market for 12 months or more or properties that no one bothers to look at" these properties may be good source for "handyman specials", you'll find a lot of these vendors are frustrated and feel delighted that someone will finally do a deal and in most cases on any terms. and tell the agent that you run a business that can solve alot of vendors problems, like upside down properties etc. the real estate agent will then refer to you when he comes across problems in the future I have found with the newspapers, its better for the marketing of properties you have rather sourcing properties you want.

I've also picked up a few properties from the 'For Sale By Owner' type websites (including Gumtree).  It pays to keep a regular eye on these sites and call the ones that haven't sold after a couple of months.

Cheers,  Paul

All good advice here…. on the flip side to many of the people here, i get a GREAT number of my deals through Real Estate Agents.

They can be a mixed bag. Sometimes i find the newbies great as they'll listen to anything to get a first sale over the line and often let you get to the seller with some clever words. Oftentimes the deal is all agreed and ready to sign up before the Principal agent finds out and its too late for them to put a stop to it.

Other times i find the older long term experienced agents can be good because they've done 'something similar' or vaguely along these lines before and its just a matter of adding a few variations to what they already know to get it through. You'll find they'll sell the concept to the seller for you and save you a lot of the work.

You just need to help see the forrest through the trees and narrow it down to a specific property. Start with questions with the agent to weed out the motivated sellers on his book – which property is vacant right now? Which one has been on the market the longest? Which one needs to sell first? and why? that'll get you working with those sellers who need a solution now and your on your way.

Then remind the agent how they are getting paid the whole time, thats all they care about after all

Cheers

Sheree