'I hate real estate agents.'
'Realtors just don't understand me.'
'Real Estate Agents, Lawyers, and Bankers are deal killers.'
These are the statements I regularly hear from many frustrated investors and even other real estate
agents. Investors and real estate agents for many reasons are like oil and water. Well I am one
Investor who doesn't waste a resource.
I would like to let you in on a little secret:
The RIGHT real estate agent or broker can be your best ally in operating a successful money making
Lease Purchase business. Heck, some of my best friends are agents.
For example my friend, real estate agent Bob, calls me every week about deals. He has a constant
source of people who can't get past the bank, properties that are sitting on the market, owners who
are motivated, general information, comparable prices, and golf tips for me. What does Bob get in
return? Last year I gave Bob over two (2) million dollars in real estate listings, property management
clients, consulting and referral fees, real estate commissions and an occasional lunch. Ours is a
win/win relationship. We both make money without stepping on one another's toes.
Let's face it some of these folks are the hardest working, lowest paid people in a billion dollar
industry. They have to go to special schools, become licensed and regulated just for the pleasure of
driving Mr. and Mrs. Looky Lou around. They have to sweat out the buyer and seller agreeing on terms,
coordinate the escrow companies, lawyers, title insurance, repairs, inspections, financing and more.
When a deal finally happens they are compensated by a percentage of the sale usually not in excess of
6 or 7 percent. They then have to split this princely sum with 2 or 3 other people; brokers and other
agents. When you account for the overhead of advertising costs, cell phone, pager, give backs, signs,
open houses and 20 other things that I can't think of right now there isn't much profit left. You only
need to find one professional like Bob to change your opinion of Agents.
Here are a few suggestions for finding your own 'Bob the Agent'.
Don't waste your resource ! The profitable Lease Purchase investor needs a constant renewable source of
homes, buyers, sellers, investors, etc. While you might not see yourself in a Century 21ª gold jacket or
flying a Re/maxª balloon there are many win/win opportunities for investors who get to know those select
professionals out there like Bob who are willing to share their years of experience. Now you need only
to go out and find them!
- Locate: Work with winners. Select the best Agents or better yet brokers that you can. I prefer
Re/maxª Agents because they choose real estate as a career rather than as a part-time diversion. These
agents have to pay a monthly fee to operate, but get to keep their lions share of the commission.
- Communicate: This is the key to success. Let your agent know what type of properties you specialize
in (i.e. single family houses, condos, mobile homes, etc.) and your favorite techniques and
financing (foreclosures, lease purchasing, fixers, etc.).
Here are some sample dialogues to open doors with real estate agents:
- Hello, I saw your ad and was wondering if you and your client would consider a rent-to-own offer on
the advertised property. You would profit in the transaction regardless if the home closes or not.
- Hi Dude! (California Version) - I am a Lease Purchase investor and I have many people who have called
me on my ads, too many in fact. Do you ever get potential buyers who don't qualify, but who would like
to get in a good home in a nice neighborhood?
- How Ya Doin'? (N.Y.C. Version) - Do you have any properties listed that will be expiring soon where
the owner would consider a full price offer in return for doing a Lease with option to purchase with
rights of assignment? Do ya know what I mean?
- Bird-dog Version - Ms. Agent, how would you like to increase your cash flow significantly by working
with me structuring rent-to-own deals? You would receive a consulting fee up front regardless if the
deal closes or not. However, if it does close you will receive your usual commission.
- Adversariel Florida Guru Seminar Version - Hello, what's the least your client will take for the
property with nothing down ?
- Access to the MLSª: This is a wonderful resource designed just for real estate agents. Some regions
of the U.S. use books, but most depend upon the modern computer. Contained within the MLSª are the agent
listed properties for sale, deals that are pending and homes which have sold. The information can be
formatted for a specific area, prices, and types of homes. The data can be formatted for Lease Purchases,
owner carry backs and all sorts of creative type financing as well as motivated owners.
Tip: Some areas of the country now have web pages with the local or state MLSª and all sorts of
information. Imagine yourself making offers from your desktop computer via e-mail.
- Comps: Need an idea of what properties sell or rent for; a good realtorª can be indispensable.
- Resource: An experienced successful agent has knowledge of the best local mortgage companies, banks,
escrow and title companies, property inspectors and the like.
- Affiliate membership: Many areas have affiliate realtorª memberships where you can attend meetings,
lectures and meet the cream of the crop.
Diamond Consulting Group
Success, One Person at a Time !
Claude W. Diamond J.D.