Epic Real Estate Investing - Getting Deals Through Realtors | 1042

Episode Date: June 7, 2020

For the best results in working with a realtor, you have to scratch their back so they scratch yours! Hence, this Sunday, Matt shares proven ways on how you can benefit from a real estate agent so you can get the best deals trough cooperation with them! In addition, you will find out how you can reach to realtors using an Epic’s service in case you don’t have an MLS access! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing. Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep listening. If you want it faster, visit R-E-I-A's.com.

Here's Matt. Hey there, Epic Investor. It's Matt Terrio from Epic Real Estate, where we show people how to invest in real estate with an emphasis on retiring early. This is the Epic Real Estate Investing Show. Really glad that you found us if this is your first time here. And if you like what you hear, make sure you hit the subscribe button before you go. And if this is not your first time here, welcome back. And thank you for sharing this with your friends and family. You are the absolute rock stars that you are for doing that.

I really appreciate you for that. So thank you. So yesterday we talked a little bit about the market, right? The market conditions. We had some important economic data pop out of the places where that kind of data pops out from. In the stock market, oh my God, it just exploded, right? Gosh, can you imagine if you went back in, I think NASDAX at an all-time high? I don't think the Dow hit the all-time high yet, but it's certainly bounced back up.

I think it's actually above pre-COVID numbers, which is really astonishing. You know, if you think about anything, I'm thinking about the opportunity I missed on buying stocks, right, on the day that it crashed. I mean, what a magnificent run you would have had over the last 90 days. But can't predict it. Don't know. And there was so much uncertainty at the time when that one all went down. Don't beat yourself up if you missed out on that. But it would have been nice.

And cheers to you if you did. So at the end, I was talking about how the retail market and working with research. realtors and the idea of digging your well before you're thirsty. I've been working with realtors here in Vegas recently and found a couple good ones. And it's been a way to just bring some more opportunity across my plate, across my table, or across my desk. I'll get the right metaphor here in a second. But it's probably something you want to do because I think it's a strategy we don't talk about or a lead source, an opportunity source. We don't talk about too much here on the show.

haven't talked about them too much on the show because I just haven't I'm not that fond of most of them. I mean, I'm sure they're great people, but when it comes into my business, they just got an amazing track record of dealing with realtors that just mess it up. They just get in the way.

And for multiple reasons, but they just have a way of getting in the way. I do like realtors for selling my property. If I want to go for a retail price, I definitely would hire a realtor to do that. I think they are really good at what they do when they work in an environment to where getting your top dollar for your house, call a realtor. And even if you got to pay them their commission, based on my experience, I think you get more just by the way exposure works. You know, exposure creates demand and demand drives value.

And a realtor, what's the number? I think it was 93%, 94% of all transactions happen through agent-to-agent cooperation. And so agents, they really kind of control the buyers. They used to control the listings. And I guess they do still. But they control the buyers as well. Like when that buyer comes up and meets with a real estate agent, they are depending on that real estate agent to take them to see properties.

And if they don't like you or don't like your property or don't like the commission you're paying on your property, they're going to take them to a lot more before they get to yours if they ever get to yours. So that's why I just think you get more exposure from people. that are qualified, pre-approved, pre-qualified, ready to buy. And so that's why I like realtors to help me sell my houses. But when it comes to finding deals, never had a great situation with them. I haven't really had to go and go that route because I was such a, just through networking relationships, my own was enough.

And then when I became a pretty good marketer, then all of a sudden I was like, I didn't need to deal with realtors. But I'm seeing value there. value in the sense that we're still waiting, and based on yesterday's conversation, don't know. It's 50-50 at best right now. That houses are going to be sitting on the market longer and realtors are going to need to work with us.

And like I said, it's 50-50 at the moment. Don't know. But I referenced a book that I have sitting on my shelf that I have not opened, I don't believe, but I can see the title. And it says, dig your well before you're thirsty. So let's create those relationships now rather than what we were talking about, you know,

mid-March and beginning of April of like, hurry, go make friends with a realtor. Go make friends with a realtor. Not a genuine relationship when you do it that way. Let's talk about working with realtors. First of all, let me just share. Finding a good, open-minded, scratch my back and I'll scratch yours type realtor,

they can be an invaluable team member when you find one. So keep your eyes and ears open for those. The basic exchange and value is that you feed the realtor your lost leads, the leads that didn't turn into anything for you, and list with them your retail properties. That's kind of what you do for them. You're going to give them your old leads. You're going to set them up for listing presentations.

You're going to, when you have a property that you want to sell on the retail market, you're going to call that realtor. That's how you're going to scratch their back. Okay. So here's how they help you scratch yours, or how they do scratch yours. the realtor is going to help you find deals on the multiple listing service, and they're going to give you first crack at properties. That makes sense for you before they hit the multiple listing service.

All righty. So that's the exchange. Now, most realtors will be reluctant. Most, not all, but most will be reluctant to really participate until you've proven yourself first. If it's a brand new relationship, you're going to have to do the proving. It doesn't seem fair, but that's just kind of the way it usually is. You know, additionally, most realtors, they're going to be resistant to or completely unaware of anything even remotely creative. You know, many will actually think, you know, any creative offer you propose, it's going to be, it gets filed right under a scam category, at least their scam radar goes off.

Or they think it's just flat out illegal. So you can choose to try and educate them when you come across them, and I think that's going to be a good number of them. or you can just move on until you find someone that actually gets it. Finding an open-minded cooperative realtor that's willing to reciprocate fairly, that can be extremely frustrating and rather difficult, as difficult it is to find the motivated sellers. Just kind of the way it is. But like I said, they can be an invaluable team member,

so keep your eyes and ears open. And that's up to you whether you want to go through that and try to find one or not, but I think you can. So for best results, You're just going to have to be the giver first. And frequently, you're going to have to give more than once before getting anything in return. So focus on what the realtor cares about most. They care about commission.

They care about fast commission. They care about easy commission. They care about now and future commission. And they care about consistent commission. A lot of time can be saved by just kind of focusing on. that and reassuring them that they are going to get paid when they work with you. And I think another way to leverage your time is work with a few of them in the beginning, especially if you're starting with these relationships out from scratch.

Work with a few of them in the beginning to find that one golden relationship because, like I said, that, well, kind of just said it already. That relationship can be as good as gold. And the work in establishing an equitable relationship with a realtor is very much worth it. So be patient. All right. So there's your expectations. So here's what you do for realtors.

this is what they're going to love. First, when you're speaking to a motivated seller lead and it ends up that the seller doesn't have enough motivation for you to do a deal, you're going to say, okay, Mr. Seller, and thank you. Sorry that the market wouldn't allow us to both get what we want. But it looks like you want more of a retail price than what the market will allow me to offer. And the most certain way of getting that price is through a realtor. and I know a really good one that can absolutely get you that price quickly.

Would you like me to make an introduction? All right? So if the seller says yes, you call up your realtor, write down the spot and set up the meeting. You know, as valuable as it can be for you and passing on to realtors, your lost leads, it will be priceless for you when you edify the realtor in that way and set the meeting up for them or the listing present.

up for them. The more of the heavy lifting you can do for them, the more they will remember and feel obligated to reciprocate. You're going to guilt them into giving you deals and guilt them into giving you what you need. Second thing, when you have a retail or even a hotel, whole tail, I was having a hard time. It's not the hotel, motel holiday. No, it's not that. The whole tail, like wholesale, whole tail property to sell. And you. You're going to sell. And you're and you've determined you want to give it maximum exposure by placing it on the MLS, call your realtor and give them the listing. So your retail property is going to be the one that you've spent some time to do some rehab with.

The whole tail might be one that doesn't need a whole lot of repairs, but you're just going to run through and give it a nice good cleaning. I would say call Molly Made, the one that's on steroids, have her come in and clean it up and make it smell all fresh. And you can typically get a lot more money that way on the retail market in that condition than you could by just selling it to another investor. Okay? So there's nothing a realtor likes and values more than receiving a call with the deal being handed to them.

They love that. I remember when I had it. I loved it. If after two or three times of doing either one of these things for them, whether you're introducing them and setting them up for listing presentations or giving them listings of your properties. And so after you've done that a few times, and if you're not feeling the love back from your realtor, it's time to find another. Either they don't get it

or they're not hustling themselves and they don't have the opportunities to give to you. And either one is unacceptable for you as their partner, for you to do business with. So that's what you do for realtors. So this is what the realtors will do for you. One thing is they can run comps

when you're unable to get it all done yourself. The other thing is they submit investor style offers for you to other agents that have properties listed on the MLS. That's how I'm leveraging them right now. They're submitting creative offers to older listings on the multiple listing service. Then they also will share with you their listings before they post them on the MLS to give you an opportunity to get your offer in.

And if they're reluctant to do these things for you, either you got two options. You can either provide more value to them if you really want to work with them or you just go out and search for another realtor. I think there's 1.1 million real estate licensees in the country. So there is another one out there. But use your discretion and remember that relationships and trust, they take time to build. Okay? So here's one way to reach them.

And you can go and look for older listings. I give my clients, my private clients, they get Epic Property Finder. when we work together, and they get access to that. But you can go, if you don't have MLS access, or if you don't have an agent or a connection that does, you can go to propstreamepic.com,

and you can get MLS access there. Propstreamepic.com. That'll give you a seven-day free trial. And see how that goes there. You get free access that way for seven days. And if you like the service, you can resume and you can pay. It's not even that expensive.

All right. So that's PropStream. Epic.com. But you're going to go look at the older listings. Now, an old listing, it's going to be relative to the market and its conditions, but it's pretty safe that anything on the market longer than, say, 60 days would be considered an older listing. The seller's been trying to sell for a couple months.

The agent's been trying to sell for a couple months, and it's not selling. So that's typically older. Like I said, you can search PropStream Epic or you just go direct to the multiple listing service. then you can email a message to the realtor. Even in PropStream epic.com, there's a link right there to the agent's email address. And you can just send them a little message saying,

hey, my name is Matt. I'm an investor buyer, and I'm looking to pick up several properties over the next three months or so. In this area, I'm sending this email to you because I'm without agent representation and I'm interested in making an offer on your listing at this, I'm going to say, 456 Main Street,

because everyone says one, two, three, main street. I make an offer on four, five, six main street. Will you represent me? All righty? So you just reached out to the agent. And you focused on, indirectly, you focused on commission. You focused on a lot of commission because you asked them to represent you. So they're already the agent, the listing agent.

So they're going to get a commission from the seller side. And if they represent you, they'll get a commission from the buyer side. Both of which, by the way, the seller pays for. So that's a good thing. So it's no skin off your bank. back, no money out of your pocket. But typically if an agent knows they're going to get double commission, they'll work a little bit harder to put that deal together.

All right? So that's how you'll reach out to them. So now that you're in this email discussion with the agent, limit the amount of emailing correspondence that you actually do with the realtor. Limit that to a minimum and get on the phone ASAP as soon as possible. Because the intent of this whole exercise is to get a. response and get on the phone to discuss so you can start talking about that deal and or building that relationship. And you do that by, you know, anytime that you get a positive response

from the real estate agent, just reply with, hey, would it make sense for us to hop on the phone to discuss? That's how you get there. Right. Now, when you're looking at deals with agents and on the multiple listing service, the circumstance is certainly different. The situation is different because it's a property listed on the retail market. It's represented by a real estate professional. But with that said, you are still an investor and your job is the same. So I want you to run your numbers in the same way you would with a private seller. The circumstances don't change your personal definition of a deal.

Now, every once in a while, one of these are going to work out for you. But the real goal is to create the relationship and get the realtor to call you before their deals are listed. So once you get their information, you're going to put that agent's information into your follow-up system, and then you're going to send them this follow-up email. Hello, Sally, Agent. It was a pleasure speaking to you. I'm looking for multiple investment properties, and I can close fast. When it makes sense, please give me a heads up on new listings before, post it on the MLS,

so I can take a look and immediately send my offer before you get submissions from buyers' agents. I just read that from the swipe copy that I give to my clients. So just something like that. Okay. So you're letting them know that it was nice talking to you. I'm going to buy multiple properties. So they're thinking multiple commission. You're saying I can close fast.

So they're thinking fast commission. And when it makes sense, give me a heads up. And I'll send my offer over immediately before you get bombarded by all these other agents. And maybe we can just get this done quickly, which means quick commission. Right. So when you get resistance of pushback from your low ball or creative offers, because you will. Okay. and this is all best said in person or over the phone.

I mean, I guess email it if you have to, but it's much more effective in person or over the phone. Hey, Ms. Agent, I understand your reluctance to present this to the seller. It is a low offer compared to what they're asking, but I would still like you to present it to the seller. I mean, if anything, this offer will likely get the seller thinking about a price reduction, which will ultimately help you sell the house anyway. And you never know.

maybe they're ready to be done with this, take the cash, and just move on. It wouldn't be the first time by any means that has happened to me. Will you please present it to them? Something like that. Okay. And now the next section is kind of optional, you know, if the realtor still resists. So, okay, I understand. You know, you have your reputation to think about.

You don't want to embarrass yourself. And you know the seller's situation better than I do. But can we do this at least? Can you call the seller and share my offer over the phone? and ask if it makes sense to put it in writing for them. Can you at least do that? I mean, although my offer is low per the current market, it's not really that low considering the time, work, and money

that this property needs to command full market value. And quite honestly, if I were in the seller's shoes, I'd still want to know what a cash investor is willing to pay. Can you at least give the seller a call? All right? So it sounds like that. So you might have to do that a few times. But, hey, this is work.

You can have those types of conversations. with sellers, or you can have those types of conversations with agents with the idea of the agents bringing you sellers so you don't have to have those conversations, right? So it's just another way to do it. You don't have to work with the real term. But it's another way to generate leads without a whole lot of effort on your part other than paying attention and building a relationship with the agent. And it doesn't cost any money.

It's free. So consistency is key here. Succeeding with agents, it consists of staying at top of mind. in a positive way. You're going to want to track your conversations. You're going to want to track your offers. You know, the fortune, it's in the follow-up, even with realtors. So as long as the property is an active listing,

I want you to follow up weekly with the realtor to represent your offer. Keep in mind, you first contacted this realtor, like if each week sounds like a lot. Keep in mind, you first contacted this realtor about the property when they have already been on the market for a long while, like at least 60 days. So each week, just follow up with the agent and with the conversation that sounds something like, hey, it's me again. Just following up on that offer that I made last week on 456 Main Street. And I see it's still active. Would you please represent my offer to the seller so they know I'm still interested in buying their property for cash?

Right. So that's the conversation you're going to have each week. And then I always like to finish out, oh, by the way, have you noticed any new listings that are offering seller financing? That's my favorite question, ask a realtor. And we've talked about that here before, and I'll talk about that a little bit more tomorrow. But anyway, make a note of everything in your follow-up system. And, yeah, speaking of tomorrow, I'm going to give you another great way to reach out to realtors. Another great way to get deals is actually how I met mine here in Vegas.

So I want to share that with you tomorrow. And they're bringing me deals. And they're hustling like crazy. And I'm going to let you know how I did it. And we'll talk about that tomorrow. But this is one way. Okay? So if you found this episode valuable, who else do you know?

Who else do you know that might find it valuable? as well because there's a good chance that you do know somebody who would. And when their name comes to mind, please share it with them. Do me a favor. Do them a favor. Do yourself a favor. You just feel good by doing it. And then ask them to click the subscribe button when they get here and I'll take great care of them. All righty, that's it for today. God loves you. And so do I. Health, peace, blessings, and success to you. I am Matt Terrio. Living the dream. This podcast is a part of the C-suite radio network. For more top business podcasts, visit c-sweetradio.com.