Epic Real Estate Investing - How to Make an Offer When a Realtor is Representing the Seller | 712

Episode Date: July 13, 2019

If you want to get more business from realtors that are representing properties, then you need realtors that are not representing the properties. Matt shares a few points on this subject that will have a big impact on your results. Learn more about your ad choices. Visit megaphone.fm/adchoices

Hey, Rockstars, it's Matt Terrio over here from Epic Real Estate. And today, I want to show you how to make an offer when a real estate agent is representing the seller of the property that you want to buy. This is Terrio Media. I was inside of our private Facebook group for the pilot program that's running. It's a private small little pilot program that we're running to show people how to get their first or next deal using little to no money. and I was checking out the questions. And by the way, if you want to get more information on this and what's involved, you can head over to free real estate investing course.com and get all the details there.

And if you like what you see, join us. Ready? Anyway, I got a question. Let's see. It says, when delivering a written offer in person to a seller who's using an agent, should we do anything different to our approach? Or do we treat the agent as if he were the homeowner? There is this home for sale whose agent seems super amateur.

I'm concerned that he won't do a good job. explaining the contract in a good way to the homeowner. Is there anything I can do about that? Our amateur seller agents actually in our favor as investors offering cash. All righty. So good question. So what you want to know is how to represent your offer to a seller who's represented by an agent, of which could potentially give you an additional viable channel for finding deals.

Because it totally makes sense. There's a bunch of these types of deals out there on the market that could create a bunch of brand new opportunity for you. So if you know how to do it right, of course. So keep this in mind about realtors and how most of them think about real estate investors. Having been a real estate agent for a few years before I came a full-time real estate investor, when I'm holding open house, for example. And on the low side, every time I held an open house, on the low side, there'd be two or three people that walked in said they were investors.

On the high side, that could be up to a dozen on a busy day. And the speech was always the same. The approach was always the same from real estate investors. They'd come in, they'd say, hey, you got any deals? And I'm like, well, maybe. What, what are you looking for? And the next answer almost always was, hey, anything that pencils. And I heard that so many times that I just kind of rolled my eyes and yeah, yeah, whatever. Because what that represented to me was a few things. One is they don't really know what they're looking for because they couldn't explain it to me with any sort of certainty or

specifics. And the second thing I meant is that it's going to be a whole lot of work for me. I'm going to have to send you all of these properties. And you're probably going to say no to most of them. And the ones that you do like, you're going to have me write low ball offers up the wazoo. And none of them are going to get accepted. So to me, as a realtor, that translated to a lot of work and no pay. And that wasn't very appealing to me. And then on the other side of things as a real estate agent when we were talking to real estate investors, when they were sellers, you know, what that meant to me was, oh boy, here it comes. I'm to do all this work. I'm not going to meet their expectations. They're going to want me to get top dollar. and they're going to cut my commission because that's just what real estate investors do. They're in the position of making money and they would want a piece of your commission because it's going to increase their bottom line.

So for the most part, that is a realtors experience with a bunch of investors. Certainly there's some good ones that come along every once in a while. It was a really good investor that inspired me to quit being an agent and become an investor. But I went through a lot of those types of experiences before I found that person. If you want to get more business from realtors that are representing, properties and even realtors that aren't representing properties. I'm going to give you a few points to consider moving forward that's going to have a big impact on your results.

Right. So number one is, and this goes for everybody that you're going to interact with every relationship that you ever engage with for your business is you're going to have to play their favorite radio station with them. W-I-I-F-M. What's in it for me? And so you have to play that frequency really in all of your conversation, the context of all of your conversation has to be in that frequency when you're talking about.

talking to a realtor. And this doesn't matter whether they are a veteran agent or an amateur one. The two things that realtors really want, what agents really want is one, they want commissions, right? That's what they're doing this for. They want their commission. That's probably the most important thing to them. If they can have it their way, the second thing they want is they want their commissions fast. And, you know, realtors are people just like us. They are normal human beings that are motivated by every, all the same things that you and I are motivated by. So they want their money and they want their money fast. And if there's anything a realtor likes more than a commission,

it's repeat commissions. So another part of their frequency is if you explain to them that you're going to be doing a lot of deals in the area, you're going to do a lot of deals in the market. You're going to need some representation. That's going to calculate to them as repeat commissions as well. So they want their commission, they want it fast and they want it often. So that's number one.

Play the realtor's favorite radio station WIIFM. What's in it for me? Number two, consider aligning. yourself with the realtor. So if your big concern is negotiating against the realtor or the realtor misrepresenting your offer, consider the realtor representing you as well. If they're representing the seller, they can certainly represent you as the buyer at the same time. And this does a couple of things. One, it puts them, puts the incentive in the right place because they have two clients now. And those two clients are going to represent a double commission. And they were more

likely to exert whatever influence they have to push that deal forward and keep the peace and make sure both sides are happy and reach a good ending. And so consider that. Consider aligning yourself with the real term. If you're on the same side, you're more likely to get the result that you want than if you are at ends and you're going against each other. Number three, and this one, I think, is really overlooked and underestimated. And I don't know, maybe a lot of people don't even realize that they can do this. If you're a big concern is the realtor misrepresenting your office, offer, request to make your offer in person to the seller and have your realtor present. You can't underestimate the amount of rapport that can be built face to face versus through a

third party or through over the phone. So request to make your offer in person. It puts you in a place to explain your offer and justify it, answer any questions, and build rapport. I remember as a realtor in the beginning, I got started in a very competitive market. This was back in 2004. 2005 when I was a real estate agent. And, you know, as soon as a property came up for sale, within 30 minutes, there could be 30 offers on that property. That is no exaggeration. If I wanted to eat, I had to get really smart and get my hustle on and figure out how to beat those other 30 offers or those other 29 offers. So what I would do is always request to the selling agent. May I bring my buyer and we present our offer in person? And I want a lot of deals for that

reason because most people were just faxing them in. They were just emailing them in. But we took the time to come in and meet the seller. I got to introduce them to my buyer. And we got to explain the offer or got to answer their questions, build a little rapport. And we got a lot of offers accepted that way. And you as a real estate investor with that realtor on your side, or even if the realtor isn't on your side, you can still request to make that offer in person. Real estate agents, they've got a fiduciary duty to accommodate that. Not a lot. A lot of might not, but they do have a fiduciary duty. It's in their best interest to do so. And it's actually somewhat their moral or their professional obligation to do so as well as they

represent the seller. And if they represent both of you, that should be a no-brainer. So represent in person. Okay. And then regarding amateur agents, they can be huge allies for you. As they're struggling in the beginning trying to make the most simplest of bucks, most real estate agents aren't going to make their first paycheck between three to six months. So in the beginning, they're really hungry. and they're willing to do darn it or whatever it takes because they got to eat too, right? Most of the time those amateur agents or those newer agents are going to do a lot more work for you than veteran agents would do. Take advantage of the relationship, take advantage of the opportunity, but don't take advantage of

the person. I want you to treat them as a team member. I want you to set their expectations appropriately. You know, if you're brand new yourself or if you only done a couple deals, let them know that. But let them know you're going to be doing multiple deals in your own. market and you're going to be sure that you're going to take care of them, let them know they're going to get their commission. And if we do this right together, you're going to get a lot of commissions and just set them their expectations appropriately. I don't think it's a bad idea to throw them

a buck every once in a while to show your appreciation should you keep striking out. And keep in mind that this relationship can grow into a mutually beneficial and invaluable relationship. Keep the big picture in mind. By the way, if you'd like to go deeper with getting your first or your next deal done, using little snow money. And you want to get weekly assistance from my team and myself. We just up to the amount of support that we're providing. We were doing it once a month and now we've gone weekly. You might want to head over to free real estate investing course.com. Take a look at what we've got there. And if you like what you see, go ahead and join us. All righty. So here's what we know.

To increase the likelihood of you getting your offer accepted with a realtor involved when they're representing the seller, you want to think of it, consider a few things. One, play their favorite radio station. What's in it for me? W-I-I-F-M. Keep that in mind when you're talking to them. Don't focus on what you want. Focus on what the realtor wants. If you wanted to work with realtors, you got to focus on what they want. If you help them get what they want, they're going to help you get what you want. Number two, you want to align yourself with the realtor, right? Consider having them represent you as well. They're going to earn a double commission for that. And as I mentioned before, they're people too. Believe it or not, realtors are human beings and they're motivated by all the same things that you and I are motivated by is also. And money, that's a big,

Motivator. Number three, request to make your offer in person. Don't underestimate how far that personal interaction can take you, especially just being likable and trustworthy and just being able to build overall rapport and get your offer accepted more times than not. And then as a bonus, don't lose sight of the bigger picture that you'll be doing more deals in the future. And this realtor could really end up being an invaluable team member for you. Okay, so treat them right. Thanks for watching. Thanks for listening. And if I may ask, you know, who do you know that may find what we discussed here today useful?

I'd consider it a great favor as well as the person that you'd send it to. If they'd find it useful, they'd probably consider it a favor as well if you went ahead and gave us a like and went ahead and share it with them. So feel free to do that. And so that's it for today. I will see you next time. Take care. Bye. This podcast is a part of the C-suite Radio Network.

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