by Claude Diamond
'I hate real estate agents.'
'Realtors just don't understand
'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
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'.
- 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 ?
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!
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
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
Resource: An experienced
successful agent has knowledge of the best local mortgage
companies, banks, escrow and title companies, property
inspectors and the like.
Many areas have affiliate realtorª memberships where you
can attend meetings, lectures and meet the cream of the
Diamond Consulting Group
Success, One Person at a Time !
Claude W. Diamond J.D.