There is an old saying in Real Estate,
"If you don't list, you don't last!"
Real Estate Investors...Real Estate Agents
You can't make MONEY from an EMPTY WAGON.
In this presentation the discussion is going to be finding properties that owners want to sell. Sources of owners in various stages of wanting to "unload" their current property. Depending on the owners personal situation will determine
the terms and price of the property.
STOP! First and foremost the door to success is labeled,
open your "Sphere of Influence". Do not start any new
venture without calling on everyone you know to start
pulling for you. READ: Build your business.. click here
In this writing Agents and Investors are "LUMPED" together
simply because they both want to find the same thing, sellers
wishing to find buyers, either directly themselves or through
hiring an agent. They maybe looking for different things, but
it boils down to where to find sellers with properties for sale.
Investors should have a good working relationship with several
agents who will contact them when they find an investment
grade property. Investors also need to appreciate the agent's
"job" and what goes into earning their commissions.
Many agents and investors are looking for "desperate" sellers
willing to make the price and terms so advantageous to the
prospective buyer they can't refuse to buy.
When reading advertising on properties for sale, you often
will see, "Motivated Sellers". That is to plant the notion the
seller is willing to sacrifice the price for a quick sale.
Reasons for accepting a discount in the sales price.
The reason behind the owner wanting to sell their property
is important in giving the prospective buyer leverage in
negotiating the price and terms. The property doesn't
always have to be in distress, but an owner in crisis
makes for softer negotiations.
Such things as Divorce forcing the split of equity, job transfers,
out of town owners, death and a sale to settle an estate with
heirs anxious for their share of the probate proceeds. Financial
problems, loss of a job, falling behind on the mortgage payments
all leading to a "forced" sale and conditions ripe for a huge
reduction in price.
Real estate agents realize such sellers will be flexible and
willing to be realistic when offering their properties for sale.
Investors need such seller's motivations to basically offer the
investor financial margins to allow for them to make a profit.
The Investor really has an upper hand when talking to the
seller. Time...go to immediate close no marketing time.
Reduced costs of selling, no commission and very limited
sales costs should work in the Investor's favor.
Investors of course are looking for those sellers in "crisis" to make
their offers low enough to eventually pocket a profit for themselves.
Understand this basic fact, owners can change price and terms,
however two additional factors will determine the value of any
property.
"Location and Condition"
No one would consider buying a property in a poor location without
figuring that into the value, nor would anyone buy a property in
need of fixing up without estimating the costs involved in
rehabilitation. Investors need to be watchful of zoning and
building codes as well in calculating the value, and purchase price.
Investors are interesting in purchase agreements and the terms
and conditions of the "buy". Real Estate Agents are interested
in putting properties under contact, "listing agreement".
The Listing Agreement protects the agent when they produce a
buyer for the property. There are different types of listing agreements
each having a place in the real estate transaction.
{You can search out definitions of types of listing agreements. I
am only offering three and going into detail on one.
"EXCLUSIVE"
because that is the common agreement form most agents are
seeking.}
1)
Open Listing; Agent brings a satisfactory purchase contract and
gets paid. owner reserves the right to sell without paying a commission
and may grant several agents the right to sell and earn a commission.
2)
Exclusive Agency Listing; The owner reserves the right to sell
the property without paying a commission. It allows the agent
protection on a sales commission and authority to work with other
agents as the sole agency acting in the sellers behalf.
3)
Exclusive Right-to-Sell Listing.
An exclusive right-to-sell listing is the most commonly utilized instrument.
It gives the broker the exclusive right to earn a commission by representing
the owner and bringing a buyer, either through another brokerage or directly.
The owner pays both the listing and selling broker fees. The owner cannot
sell the property without paying a commission, unless an exception is noted
in the contract. This protects the real estate agent and allows the real
estate brokerage to spend money marketing the home and usually provides
for the property to be listed and sold through Multiple Listing Service. {MLS}
Many Sources of Properties For Sale
As you review this article, the one constant on your mind, where will I find
properties for sale? You are going to make contacts with some real estate
agents for leads, advice and assistance. You will find additional sources and
important investor tips and information at a number of other sources.
Check them out not just for investment opportunities but for training and
use agents to learn your local real estate markets.
Whether you're looking to purchase your first rental property or you're
an experienced investor, a Fannie Mae-owned home can be a good
investment opportunity. They have all types of homes available… from
those needing light or moderate renovations to fixer-uppers. And they
include different ways to purchase.
It is free to sign up, search out for property leads and study for learning
your local real estate market. The web site is:
HOMEPATH-Federal National Mortgage Association (FNMA)
https://www.homepath.com/investor_contact.html
Real Estate Agents, one of the greatest sources of prospective listings
and finding owners that want to sell their properties are online advertising
classified sites. This is where owners list their properties for sale or rent.
Owners have many reasons for wanting to sell their homes
and not all of them have the idea they can save paying a commission.
Agents need to follow up on these ads, owners soon come to realize
finding a buyer and putting their property under purchase contract is
not as simple as sometimes first thought.
Investors also need to follow up on these ads, contact the owners, see if
they are begging for someone like you to come in and solve their "problem".
**THIS IS IMPORTANT-Use the classified ads to advertise for listings.
Agents use
Open Houses to try to find buyers and not all open house
visitors are tire kickers. Over a period of time holding open houses on a
regular basis you are going to meet the same shoppers still looking, tire kickers.
At the same time you are finding sincere anxious folks looking for their
next home.
THIS IS GOLD and
the reason holding open houses on a regular basis will add
many dollars to your bank account. Finding buyers, people who will eventually
buy a house from you visiting your open house. Do not to be pushy, but as you
allow them to take a tour of your open house determine their status.
Are they local and perhaps already have home..
will they need to sell it before
they can buy? Possible Listing Maybe it's already listed, have a sale pending
or afraid they won't be able to find their dream home and be tied down with
a rental until they can move into their next home. Here is an opportunity for
a listing by explaining how you can solve their problem.
On the other hand, you may have a new comer to town, a transfer from out
of town, or retiree fresh on the local market.
MORE GOLD! Qualify them
and let them know as a BUYER'S Representative you will search high and low
for what they are seeking in their next home. Assure them that you have the
total resources of the market to assist them and that you will
ADVERTISE
in the classifieds for what they are looking for in a property to purchase.
INVESTORS you will be advertising for homes to buy, check this out. In
addition to your
bandit signs, "cash buyer for houses any condition",
"bird dogs", friends and family, use classified ads.
**Sample Classified Ad:
Desperately {eagerly} searching for 3 bedroom, 2 bath
home for recently transferred Denver couple with one high school and
one grade school child. Prefer Ritz School area up to $250,000 all
cash to seller. Call me, Charlie Homeseller, Best Realty 213-212-1212.
or
Local Investor just finished and sold property on Rehab Avenue now
prepared to pay All Cash for Quick Sale on investment grade houses, land
or fix up properties. Deal direct, no commissions call Mary Investor,
213-212-1212.
Agents spend thousands of dollars advertising houses for sale, but very little to
find listings. When advertising you are going to turn up some homes already
listed with another agent, take the information and let the seller know you will
contact their agent for more information...DO IT! Remember one of the
sources of listings will be
expired MLS listings and other expired listings.
Show their home if possible and send them a "thank you" note, remember not
to mail them a listing pitch, just compliment them on their home and assure them
you will keep it on the top of your list of homes to show your prospective buyers.
Another better known and much used classified advertising option is
CRAIGSLIST. Private parties are turning to this online publication to drum
up buyers and sellers for almost every item and service available in the open
market.
CRAIGSLIST consists of a
classified advertisement
website with
sections devoted to jobs, housing, personals
, for sale, items wanted, services,
community, gigs, résumés, and discussion forums.
**
Agents and Investors watch these classified advertising sites check all
related subjects. While looking for properties for sale do not overlook rentals
and other real estate especially vacant land offerings. Follow up on the ads
and contact the owners for possible appointments and fact finding.
Vacant land offers many great opportunities for agents and investors do not
overlook them in the classified land ads. Recreational land, commercial and
industrial land as well as building sites and acreage. A great place to follow
prime land offerings.
LANDWATCH
More links, reading and research options for agents and investors wishing
to make money, demands all the background and knowledge available.
Listed here are web sites with affiliate links, where compensation maybe
paid for directing potential customers. Check them out, the information
is free, you'll know if you are signing up for any cost sources.
Real Estate 1 Real Estate Finance-Leverage Real Estate 3
Real Estate Investing 1 Real Estate Investing 2
NO REAL ESTATE AGENT OR INVESTOR intending to succeed can
proceed without the knowledge and services offered by
ZILLOW!
Zillow is the leading real estate and rental marketplace dedicated to
empowering consumers with data, inspiration and knowledge around
the place they call home, and connecting them with the best local
professionals who can help.
Zillow serves the full lifecycle of owning and living in a home: buying,
selling, renting, financing, remodeling and more. It starts with Zillow's
living database of more than 110 million U.S. homes - including homes
for sale, homes for rent and homes not currently on the market, as well
as Zestimate home values, Rent Zestimates and other home-related
information. Zillow operates the most popular suite of mobile real
estate apps, with more than two dozen apps across all major platforms.
TEST and LEARN -- ZILLOW offers SO MUCH! Click here
Trulia, is a mobile and online real estate resource that makes finding a home easy
and enjoyable by providing home buyers, renters, and sellers the insights they
need to make informed decisions about where to live.
Trulia offers updates on new homes and rentals that hit the market, data on
affordability and home price history, and insights on what it’s really like to live
in a neighborhood.
Trulia connects users with agents, property managers, and mortgage lenders to offer solutions and professional guidance throughout every step of the home search.
FHA insures mortgages on single family and multifamily homes including manufactured homes. Properties reclaimed and placed on the market
with local real estate agents many times offer properties of interest
to investors. More information
Agents and Investors sharing the information often find they are on the
same side of the coin in earning money from Real Estate, if nothing else one
important lesson to be learned and considered are the four factors in making
up real estate values.
Four important considerations to be learned of where,
when and how to succeed in making money in real estate.
Learn what makes up real estate values and will
determine the final successful transaction.
PRICE Prices can be adjusted.
TERMS Terms can be negotiated.
CONDITION Conditions can be repaired or upgraded.
LOCATION The property location is permanent, make certain the
location corresponds to the value set on the property.
USE OF DIRECT MAIL
Agents and Investors need to establish direct mail campaigns.
One of the best ways to directly contact prospects for initial
interviews and introduce interest in properties for sale would be
to start a program of direct mail.
Absentee Owners can be identified by Court House tax records,
are the tax bills sent to out of town addresses or other than the
address of the subject property?
Probate listings or pre-foreclosures, notices of foreclosures,
bankruptcy or divorces are potential sellers of property. Birth notices,
congratulations are in order and by the way will the new parents,
now going to be in the market for a larger home with the need
to sell their current residence?
Real Estate Agents quite often draw out an area they wish to
concentrate their efforts. Such
"FARMS" are cultivated and
adopted for special long term attention.
USE SOCIAL MEDIA
An additional project which would put you ahead of other
real estate agents is to create a FACEBOOK or the like page.
Put items of interest to that area, publish the Facebook URL
on your business card and post it in your mailings. Take pictures
of homes you have for sale or sold in the area.
You Tube has the power of video..."a picture is worth a thousand
words". Build a
You Tube presence for your
FARM
Check this out, secrets of video.
Agents can use "Bulk Rate" postage and save money. Mailings
to introduce themselves, notify of new listings in the area with
special "open houses" for the neighbors. Special viewing of my
new listing in your area, visit and relay the information to family,
friends, fellow employees and "pick your new neighbor".
Many times a purchaser of a new listing is often a friend
of someone in the community. Simply ask, do you know
of anyone looking to buy or sell real estate in the near future?
Invite the neighbors to your open houses, they will be good
"watch dogs" if someone happens to be looking at the house
later. Make sure they have your cards.
Use direct mail to announce sales, and solicit information on
other properties in the area that might be available for sale.
{Not necessarily your home but others you may have heard
about.}
In using direct mail narrow the area down to one postal
carrier's route and save even more postage money.
The Post Office has introduced
"every door direct mail"
where there is no need for address labels or purchasing mailing
lists. You just deliver your mailing piece to the local post
office designating a particular postal carrier's route saving
around 10 cents per piece and it will be delivered to every mail
box on the route. {.10 x 500=$50 probably pay for the printing.}
Investors can do solicitations by direct mail, maybe concentrating
on areas where there seem to be a large turn over of homes.
SAVE TIME with ASSISTANTS
The
Agent or
Investor will find plenty of tasks for enlisting an
assistant.
**Careful most real estate licensing laws limit actual
transacting real estate business by state licensed professionals.
However, the use of assistants will preserve the Agent or even
the Investor's time to those important personal contacts of buying,
selling, listing, working with contractors or negotiating with
buyers or sellers.
Outsourcing to an assistant every other time consuming task
will allow spreading the necessary work load. Tasks such as
checking records, putting up signs, mailings, confirming
appointments, various office type duties can be undertaken
by a trained assistant.
Your comments and suggestions are always welcome.
E-MAIL Subject: Blog on Finding Properties For Sale
