Romancing the Realtor (Part 2): How to Find, Approach & Work with Realtors
From Dave Ludena, Real Estate Rockstar …
Oh.. hey there. Back again to our little hot spot as we continue our quest to romance our realtor. Suit up, musk up and pull up… let’s go.
So far we have targeted our realtor and started to approach. Today we will finish it up by going through the rest of the process.
Saying Sweet Nothings to your Realtor
When speaking with the realtor, always lead the conversation with questions. If they ask you something, answer as succinctly as you can and immediately ask THEM a question.
Think of a hot potato…they toss you the question, you toss it right back. This idea is so powerful if you really use it right. By the way, I use this in all my interactions – sellers, buyers, realtors, professionals, humans, aliens… everyone.
So it may sound something like;
“Hi Jane, my name is Dave Ludena, I’m the President of Fair House Buyers and I actually found you today as I was pushing my shopping cart at the market, looking at your smiling face between my carton of eggs and box of Twinkies. You are obviously someone interested in building your business, and I’m searching for a good, sharp realtor to work with.”
Next, just ask some of the questions we discussed earlier in “the Approach” and let the conversation be natural and organic. As they ask you some questions about your business, they will want to know what kinds of deals you are looking for.
Answer by saying: “Any property that makes either a good fix and flip or a rental.”
Wholesalers, Listen up
I personally WOULD NOT volunteer that I am a wholesaler. I won’t deny it, but I won’t bring it up…yet. Realtors may tend to be turned off by that.
There is nothing wrong with wholesaling…it tends to be the wholesaler that is the issue. Many realtors have “worked” with wholesalers who ended up being a time vampire as the agent would send them a bunch of MLS properties, comp for them, make offers and then have wholesalers back out of all the contracts (because our wholesaler couldn’t find a buyer, who by the way, he led the realtor to believe was HIM!).
Some realtors may also not fully understand what wholesaling is. I have had good, top agents say, “Well, Dave… so you find sellers and then you find buyers and then sell the house to the buyers. Sounds to me like your are walking a thin line here of acting like an unlicensed agent.”
This is important, because you want to keep your posture up, while not making them feel stupid. I simply say, “I can understand where the confusion may occur. Let me clarify. I am actually a principal in the transaction. I’m contracting to purchase and then I am assigning/selling my rights to purchase that property. I’m not selling the real property, just the contract.”
Another BIG issue - realtors are concerned about how they get will get paid for their time and effort. We want to answer that right off the bat. Remember, 'What’s in it for me' is what they are always thinking.
And so this is what we call our Value Proposition. As we are having our dialogue and they are asking about our business you would mention, “We have several ways we acquire properties, one of which is marketing to private sellers. This has me talking to a lot of homeowners that, while the deal won’t work for me, they still want to sell. So I have all these leads coming in… would you be interested in me referring them to you for potential listings?"
When they say “Yes,” then just tie it up with, “Great, and by the way, would you be able to run comps for me? I know you’re busy and I will respect your time.”
Now, if the realtor has Spidey sense and just flat out asks if you are a wholesaler, don’t flinch or hesitate as you respond…
"We look to monetize every deal we can, and while I am looking for good rehabs and rentals, like any smart investor, we also keep wholesaling on the tool belt as just one of our exit strategies,” and then ask them ANY question about them or their business.
Again, this redirects the line of conversation and keeps things moving along.
Also, note the time. You want to be respectful of their time and have an air about you that you’ve got a lot going on as well. Tie up the conversation, thank them for their time and let them know you are very excited to start working with them.
Going a bit long on this blog post (again!), so let’s tie it up on the next post where we will discuss:
- How to work with the realtor;
- How to effectively warm up a lead for your realtor; and
- How to go in for the kiss...MLS access.