Using Real Estate Agents as Lead Generation Sources

Presentation on theme: "Using Real Estate Agents as Lead Generation Sources"— Presentation transcript:

Slide1

Using Real Estate Agents as Lead Generation Sources

Why Work with Listing Agents?

Most of the really nice, pretty houses in good neighborhoods and cities are listed with

agents.

92% of the

FSBOs

turn into MLS listings with a real estate

agent.

75% of the closed real estate deals involve a R

ealtor.

Free lead generation source.There are a tremendous amount of houses that do not get sold and go "

expired."

Agents are not taught to bring creative options to the

seller,

and most sellers want to be cashed out. BUT, when a home doesn't sell, then sellers become frustrated, creative and flexible.

Why Work with Listing Agents?

In a buyer's market,

there are

many,

many homes on the market

that sit for a long time."If my home doesn't sell soon, I am going to have to RENT IT." Some of the best types of deals never hit the MLS because

they are in default, distress or

foreclosure.

Why Work with Listing Agents?

FSBOs aren't listed with

agents.

Agents are primarily trained on the laws of real estate, fiduciary duty and contracts.

Agents are not trained on creative real estate listing, marketing, sales mastery and finance.

Why NOT to Work with Listing Agents?

Why Most Real Estate

Agents

Fail

How Most Traditional Agents Get Paid

Step 1: Get a listing.

Step

2: Market the

home (most agents skip this and just put it on the MLS).

Step 3: Set up and

execute showings. Step 4: Locate a b

uyer.

Step 5: Negotiate and sign a final contract. Step 6: Have the buyer obtain approval for a mortgage.

Step

7:

Close.

Step 8: Collect a 3% commission for representing the seller.

How to Find Real Estate Agents to Work With

Where to Look?

Newspapers.

Signs.

Personal contacts: friends and family.

Investor groups.REIA clubs.Foreclosure auctions.Call the local real estate board to see when they have functions and networking events you can attend.

Realtors know lots of other Realtors. Lunch

appointments.

Finding Agents Using Direct Mail

Letters – 90+ days on the market

Sample letter to Brokers

:

“Dear [insert broker name],

How

would you like to help your agents to sell

more properties and earn more commissions? How would you like to make more money by having your

average

days on market cut by 75

%?

I buy

[insert

number of

homes – ex. 5-10] homes

per

month using

a unique and creative solution for sellers who have little or no equity. This is not a short sale and your agents receive a full commission. I have a presentation full of facts and figures teaching your agents how to thrive in this crazy market by working with sellers who have little or no equity. I am requesting a chance to meet

face

to face to discuss this program with

you,

and once it makes

sense,

to present this to your agents so they can thrive in this type of housing market.

I

have several references including

[insert

references name and phone

number].

I will be following up with you in 3 days to establish a time when we can meet to discuss ways to help your agents sell more

houses,

confidently get more

listings

and make more money. My phone is

[insert phone].

Thanks, [insert name]”

Stop in at Broker’s office

Telephone Calls

“Hi

[

insert

listing agent name], this is [insert investors name].

I was calling about your listing on

[insert property address].

I see it's been listed for a while

now,

and I wonder if the sellers are open to something a little more creative to sell there property?

[wait for answer]

I

was thinking about something creative that might

work,

l

ike

a lease option. If your sellers would like to make sure their monthly payments are paid for

them,

and they can still get their cash out down the

road,

it could work out real well for them. I can also make sure you get a full commission.

You

can call me at

[insert

phone

number].

I buy homes where the seller can consider terms like this

yet still need

to have their monthly payments covered.

Again,

you can call me at

[insert number].

Thanks.”

Telephone Calls

Call

1x per

month to follow up

and see if they have any houses you can buy.

Giving Presentations to Find Agents

What to bring?

One-page handout on your company.

BBB.

Business cards.Donuts, bagels, fruit.Your presentation

Your Presentation

Create a PowerPoint

presentation about the economy, the state of the housing market and they types of people out there who are trying to sell

their homes:

Like my MMI

presentation - showing how sellers

are going to need creative selling on

terms

.

Agenda for the Presentation

Introduce yourself and your company.

Ask

attendees to

write down the top 5 problems they are having right now with their real estate agent

business

.You want them to start thinking and be engaged in your

presentation, not

just sitting

there listening.

3. Today's AgendaWhy so many sellers have no equity.

Why I can help.

Traditional vs. creative real estate.

4. Our Perfect SellerThis is not their perfect seller.

Is exactly what they don’t want.

Someone with little or no equity who wants to sell; is facing default.

5. Our Perfect BuyerThis is not their perfect buyer.

Is exactly what they don’t want.

Someone with bruised credit who cannot get a bank loan.

6. Introduction to Lease

Options

How it works.

How I pay commission.

Benefits to the seller:I handle everything.Take over payments.Take over maintenance.No rental headaches.Avoid default and foreclosure.

No short sale needed.

7. Benefits to the Listing Agent:

Quick sale.

Commission paid up front.

What types of homes I’m looking for.

Price range that’s best for these deals.

Other referral fees paid.

Close.

Q&A.

Offers That We Can Make To a Seller

Option 1 - All CASH at 65% of FMV.

Option 2 -

80% of FMV with

some seller/owner

financing.Option 3 - 85-100% of Full Market Value. Lease options/taking over payments.

P

aying on terms means we can pay a higher

price.

Real Estate Agent Commissions on Lease Options

Agent Commissions

They are not due their commissions until the property

closes,

which could be 2-5 years down the

road.The investor will still want to pay them their full commission so the agent is happy and brings you more

deals.

If the Realtor

is

dead-set

against a lease

option,

then move on. If they are open to

it, continue

presenting your offer.

Most agents don't do lease options because they cannot get paid up front for doing

them,

and

because

sellers want their cash up front or don't understand how a lease option can help them. The Realtor cannot feel like they are being used or they will kibosh the deal.

The Realtor cannot wait to get paid or they may suggest to their client that lease options are a bad

idea,

simply

because

the agent won't get paid. Commissions are paid in full, not paid up front.

Pay 1-1 ½ % up front.

Pay

the rest

upon closing of the "A" to "B"

transaction.

Sellers pay the real estate agent commission, not the

buyer.

Since

we are paying the

seller’s commission up front, this amount gets taken off of what we would owe to the seller later.

Example:Investor agrees to buy a house for

$170,000.

6% commission = $

10,200.

Net after commissions = $170,000 - $10,200 = $159,800. 1% commission up front is $1700.

$170,000

- $1700

=

$168,300

paid up

front.

The agent is still due $8500

dollars more upon the "A" to "B"

closing.

T

he remainder of the commission (6% total, so 5% is remaining) will be paid upon closing the "A" to "B" transaction from the seller’s proceeds. The realtors commission doesn't get paid until you find your tenant

buyer.

The transaction is always contingent upon finding the tenant

buyer.

Commissions come from the

investor,

so it's a low money down

deal.