Today’s REI Classroom Lesson
Today, Jon Iannotti talks to us about the need to have connections with investor friendly real estate agents.
REI Classroom Summary
You can feed them deals and in turn, can send you buyers for your deals. With the right agent, you can both benefit by helping each other.
Listen to this REI Classroom Lesson
Real Estate Investing Classroom Show Transcripts:
Mike: Welcome back to the flipnerd.com REI Classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Jon: Hello everybody, Jon Iannotti here with FlipNerd Classroom and our website is buyreactnow.com. That’s buyreactnow.com. And today I’m going to talk about using agents, real estate agents in your business.
Mike: This show is sponsored by passiverental.com.
Jon: And I’ll tell you what, real estate agents have made us a lot of money in our business and we’ve made them a lot of money as well. So you always want to have an agent to work with, one who understands what you’re doing. There are two things it’s got to do with an agent and both of them include feeding them. So you have to feed them not only food, but deals.
So if you can’t close the deals they’re gonna lose interest in you real quick. So I always say we have to feed them two ways because they do like to eat as well, that’s why they always have food at their open houses, just kidding there.
But, no, really guys, agents typically bring us the buyers for our properties more so than the sellers. The buyers, they have buyers, and what we tell them is, “Look, if you bring a buyer to us all you have to do is, here’s our price just tack your 3% commission on top of that and we’ll get you paid at the closing.” And it’s all handled by the attorney or title company or escrow company wherever you are and whatever you’re using. And it’s on the HUD settlement sheet, so they get paid their commission and everybody’s happy.
Again, we tell them what our price is, that’s nonnegotiable, and they just tack on their 3% and they’re happy because they get their fee. So agents are also . . . when we were doing tons of short sales we really, really made a lot of agents happy because, number one, we were the buyer on each of the short sales. So in order to start a short sale you have to have an agreement to buy, and we were the buyer.
We had teams of attorneys working on short sales. The agent on that, the property would be our agent, and then whenever it was time to close they would get paid when we bought, and then they would also bring us the buyers to buy from us. So we’d do double closings and they would actually get paid twice on one property. So they like that. So in some cases they actually made more than we did on the short sale, but we made banks happy, sellers happy, the agents happy, and our buyer happy as well as us.
So, again, the agents want to make sure that they’re getting fed properly, and that’s either with commissions or food. And preferably, commissions because that’s what they’re really after. You got to be able to perform or they’re gonna lose interest in you quickly. So as far as bringing us sellers, today, we’re not looking at the MLS that much for bringing us sellers because the bidding process just gets out of control. It takes the numbers too high and it just takes us out at the ballpark.
But as far as buyers, I mean they can bring us buyers all day long because they know our price, they just tack their 3% on top of that. And if their buyer is happy, then we’re all going to be happy. So that’s how we use real estate agents in our business today, guys.
Again, Jon Iannotti with FlipNerd Classroom and we’ll see you on the next class and don’t forget to go to buyreactnow.com and that’s buyreactnow.com. And checkout what we do and we’ll be happy to work with you as well. So see you at the next classroom. Take care. Bye.
Mike: Passiverental.com is your source for turnkey, done-for-you rental properties. If you’d like to be an investor and not a landlord, please visit passiverental.com to learn how to purchase cash flowing, professionally managed rental properties in the hottest rental markets across the country. We can also help connect you with financing for your next property. Invest the easy way today and get started by visiting passiverental.com.
Please note, the views and opinions expressed by the individuals in this program do not necessarily reflect those of flipnerd.com or any of its partners, advertisers, or affiliates. Please consult professionals before making any investment or tax decision as real estate investing can be risky.
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