Epic Real Estate Investing - Wholesaling Real Estate with a Realtor | 655

Episode Date: May 17, 2019

Do you want to wholesale your property under contract but you don’t know how to tell that to your real estate agent? Tune in and find out! Learn more about your ad choices. Visit megaphone.fm/adchoices

The reason I join Epic Insiders is because I like the way Matt's business was set up and how his academy was set up. I had met Matt before and saw that he was doing the business and I talked with his partner, Mercedes. She was just very welcoming and they just showed me what was possible working together as a team, which is what I wanted to do with my wife as well. Matt, thank you for the push when I need it and tell me what I need to hear and not what I want to hear even when it's hard to swallow sometimes. Hey, rock star Matt here. Thanks for listening. Thanks for listening to the show. And I've got a really good one for you today.

But before we get started, you know, this podcast, it's all about finding discounted off-market real estate deals. You know, what you do with those deals after you've found them, that's entirely up to you. You know, I'm partial to holding them. But you can flip them. You can flip them. You can become the bank. You can lease option them. You can do whatever you want.

But if you're really serious about finding these types of deals and finding them at will, then you might like to join us at least. the upcoming live three-day Epic Intensive Lead Machine Workshop in Manhattan Beach, California. It's July 18th through the 20th. If that sounds good to you, then have a look at Epicintensive.com. Come out west. Come to California. I mean, we're going to be at the beach.

It's the middle of summer. This is the time you're supposed to come to California. Bring the family. Make a vacation out of it. Go to Epicintensive.com and let's make it happen. All righty. Let's get started with the show. We're going to talk about wholesaling property.

And the main thing we're going to focus on is, wholesaling property when a realtor is involved. How do you do that? This is Terio Media. All right. So just for something to talk about, something that came up recently, I had a client that got in a situation and got under contract with the real estate agent and tried to wholesale the property and got stopped.

And so we'll talk about how she was able to get out of that. But before we get started, If you're serious about investing in real estate and you're really serious about wholesaling property and particularly of the virtual nature, then you might want to check out a new course that two of my students just put together. Neither one of them have aspirations to be a guru, but they both have very successful seven-figure wholesaling businesses, virtual wholesaling businesses. And they're a little bit angry and upset about the options that are available out there and how a lot of people that want to set up a virtual wholesaling course might be deceived and might be a little bit disappointed when. they discover that they can't just sit on their couch in front of the TV and push a button and then just walk out and collect their escrow checks from the mailbox. If that sounds interesting to you, you can go over and check out wholesalingvirtually.com.

Wholesailingvirtually.com. It's just a small little registration page at the moment. It'll be opening up next week. So if you'd like to get first notification, you can get it there. All righty. So let's get started. You know, when it comes to investing in real estate, we all know we need to know how to wholesale property, right?

Because when we start marketing and we start getting these opportunities from motivated sellers, we start getting these leads that start coming in, we start talking to the sellers and we start discovering what they actually have to sell. You know, a lot of the houses that you'll be presented might not be really what fits your criteria to hold in your portfolio. It might not be a good fit for you to do a lease option. It might not be a good fit for you to do a fix and flip. but there's still an opportunity for you to make money on that property.

And that's how I like to view wholesaling. But wholesale has gotten really popular. Some people that made a business out of that strategy exclusively. And there's nothing wrong with that either because I can see that's appeal because you can make a lot of money. And it doesn't really take any money for you to make that happen. But a huge thing that can hold people back when they're wholesaling is when a property is represented by a realtor. And I get it all the time. People are really worried that the real estate agent,

is not going to play ball. They're not going to cooperate. Or frequently you'll hear from a real estate agent that what you're doing is illegal. That can certainly interfere. It can cause a little bit of friction. And you can miss out on good deals if you let that deter you. Here's the thing. Recognize these three things about a real estate agent, what's really important to them.

One is their commission, right? They want all of their commission. And they feel like maybe working with you as a real estate investor or as a wholesaler, that might get interrupted or at least get cut. into if they, unless they miss out on it completely. So they're really concerned about their commission in getting all of it. They're really interested in getting it fast. They love fast commissions.

And they love to work with people where their commission is for certain. They want that certainty of clothes that they're actually going to get paid. If you get any friction from a real estate agent, it's because they haven't been made to feel at ease about those three things that are really, really important to them. So there's a couple things that you can do to put a real estate agent at ease to where, you know, you can work with a real estate agent and wholesale properties that way as well. One of my RIA ACE clients, they asked me about a property that they have under contract.

And they asked me specifically, what do I say? The real estate agent just called me and they're upset that I'm advertising this property to looking for a new buyer. And I was like, well, what did you say or what did they say to you when you told them that you were going to be wholesaling the properties? Well, I really didn't tell them that. I was like, well, okay, there's the first step where we were we misstep, I guess. But the one thing that my client did do right, and this is one of the things that you can do to turn a real estate agent into an ally, and that is to actually ask them to represent you as the buyer, because that's appealing to their need for that commission. And when they're representing you as the buyer and they're also representing the seller, that's a double commission. That's a double pay for them.

That will put them at least 50% on your side, and you'll get a lot less friction and get that deal through. Where she was getting the friction now was because she missed one of the steps. She missed the second thing because she was really fortunate to be working with an old. open-minded real estate agent. And she basically just laid it out. This is what I'm going to do. I'm looking for a new buyer and just was very direct and told the real estate agent. And fortunately, that real estate agent was open-minded.

That's not normal, by the way. And I can say that about real estate agents because I was one for four and a half years. So I spent a lot of time with them. I know how they think. I know what goes on behind the scenes. And a lot of them get really nervous and scared if their authority gets threatened or if they feel like they're losing control of a deal. But fortunately, my client was working with one that was a little bit more open-minded.

But this is what she should have done. The first thing she did was correct. She got the real estate agent as an ally in the sense that she was going to represent her as a buyer as well. So the agent was good, double commission. Let's go ahead and try and make this work. I'm going to try and push this through. The second thing that she should have done, use what's called a transition agreement. Some people refer to it as an upfront contract.

And what it is, it's just kind of what it sounds like, right? an upfront contract is presenting the contract before the terms and the price have been laid out. Or the transition agreement is every time there's a transition in a transaction, you go ahead and you kind of lay out the next contract for the next phase of the transaction. So basically what you're doing is you're setting expectations. This is what's going to happen. And then you're giving, you're setting this is what's going to happen. And it's okay if it goes this way and it's okay if it goes that way.

But we'll find out when we get there. So you're laying the foundation of or the expectations for the parties that are involved. And in this sense, typically it's used with a seller or it's used with a buyer in a normal real estate transaction, but it can be used with a real estate agent as well. So as soon as she signed the contract and was under contract and was about to begin her due diligence, she could have said or should have said something along the lines that might sound like this. Mr. Real estate agent, Mrs. Real Estate agent, I don't know what the sex of the real estate agent was. I'm about to begin my due diligence.

This looks like it could be a good property for me. I'm really excited to discover whether it is or isn't. But in the event that I find that, it is not. No need to worry. I've got a network of other investors that would be more than happy to buy this property. What I'm going to make sure is that you're actually going to get your commission when promised. The seller is going to get their money when it's promised all in a time fashion. And so that that's just how it's going to play out.

Okay, I'll make sure that you get the money when it's promised. After all, that's what's most important to you, right? And so just something like that. So you're laying the expectations, and you're saying it's going to might go this way, might go this way. It might be a different outcome, but the result is going to be the same.

I might not go the direction that we think it's going to go. And so those are the two things that she could have done. And by the way, if you're serious about real estate investing and specifically wholesaling and doing it of a virtual nature, you might want to head on over to wholesalingvirtually.com. Two of my students, they just put a course together. It'll be releasing it, open it up next week. And now you can get advanced notice.

of that. But to wrap all this up, here's what we know. Realtors can be a source of deals for you, as long as you just keep these three things in mind. They want their commission. They want all of it. They want it fast. They want it for certain. I guess that's kind of four things, but really know it's one thing because they want their commission. They want the whole commission. That's the one thing. Second thing is they want it fast. Third thing is they want it for certain. And if you want to play ball with a real estate agent, keep those things at front of mind. And then two other things that you can do to create an ally out of a real estate agent and make sure everything goes smoothly and everybody gets

what they're promised. Hire them as your agent to represent you as the buyer. And the second thing is to use a transition agreement to set expectations up front and let them know what's actually going to happen, whether we go left or whether we go right. Everything's going to be fine and I'm okay with either way. And once you can do that and you can prepare the seller, you can prepare an agent that way, you're going to get a lot more easier transactions where you don't have these mishaps and you freak out and you've got to call your coach. Like, what, do I say now, what do I do now? All righty. So thanks again. And don't forget if you're serious about your real estate investing and if you're really serious about wholesaling

properties like this with an emphasis on doing it virtually. If that sounds good to you, take a look at wholesalingvirtually.com. You'll see a little registration form over there for early notification. I've got two clients that are putting a course together. They've asked me to help them out. So I'm here helping them out. All right, wholesalingvirtly.com. That's all I got for you today. Take care. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.