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 ID: 782268
Download The PPT/PDF document "Using Real Estate Agents as Lead Generat..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Using Real Estate Agents as Lead Generation Sources
Slide2Why 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.
Slide3Free 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?
Slide4In 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?
Slide5FSBOs 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?
Slide6Why Most Real Estate
Agents
Fail
Slide7How 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.
Slide8Step 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.
Slide9How to Find Real Estate Agents to Work With
Slide10Where 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.
Slide11Realtors know lots of other Realtors. Lunch
appointments.
Slide12Finding 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
Slide13Telephone 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.”
Slide14Telephone Calls
Call
1x per
month to follow up
and see if they have any houses you can buy.
Slide15Giving Presentations to Find Agents
What to bring?
One-page handout on your company.
BBB.
Business cards.Donuts, bagels, fruit.Your presentation
Slide16Your 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
.
Slide17Agenda 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.
Slide183. Today's AgendaWhy so many sellers have no equity.
Why I can help.
Traditional vs. creative real estate.
Slide194. 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.
Slide205. 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.
Slide216. 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.
Slide227. Benefits to the Listing Agent:
Quick sale.
Commission paid up front.
Slide23What types of homes I’m looking for.
Price range that’s best for these deals.
Other referral fees paid.
Close.
Q&A.
Slide24Offers That We Can Make To a Seller
Slide25Option 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.
Slide26Real Estate Agent Commissions on Lease Options
Slide27Agent 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.
Slide28Most 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.
Slide29The 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.
Slide30Pay 1-1 ½ % up front.
Pay
the rest
upon closing of the "A" to "B"
transaction.
Slide31Sellers 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.
Slide32Example: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.
Slide33The 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.