As an agent should be getting close to being able to make a decision to buy an investment piece of real estate through the leads you generated from your real estate business, it is important that you understand that there are no time constraints nor is there a rush to buy a piece of real estate. Because of your “insider” status, you are exposed to literally hundreds of potential opportunities every day -- from your lead generation of sellers, contracts that you negotiated for buyers that did not work out, and sellers who are just not going wait for a buyer any longer -- you are bombarded with opportunities. Because of this unique position, your standards must be held high regarding your purchase of investment property. For the best book on this subject, you can purchase Insider Investing for Real Estate Agents: How to Profit from Your Intimate Knowledge of the Market at Amazon.com written by yours truly.
I would like run by some other little known opportunities that were afforded me as an “insider” real estate broker that increased my sampling of real estate to pick from. They are the following:
1. If I do not sell your property, I will buy it.
This was one of my advertising promotions as a real estate agent allowing me to receive more phone calls from potential sellers. I advertised, in all sincerity, that if I could not sell the property then I would actually buy it within a certain time frame. I also disclosed that there were certain conditions regarding this guarantee. The conditions were the following:
A. The sellers will list the property at a price that will allow the property to sell.
B. If they were in need of a fast sale through me, they would have to discount the property another 5%.
C. Furthermore, I charged my full 6% commission. This allowed a seller, who was eager to sell, an opportunity to have the property close with me in a 30 to 90 day time period.
This was an outstanding way to receive seller phone calls and meet with sellers to determine their motivations and goals. Occasionally, the seller would take me up on my offer to buy, and I was able to add more property to my inventory.
2. Fast turns to my waiting buyers.
Many times I was introduced to real estate that did not meet my personal investor parameters. There was equity in the property, and they were not listed. With full disclosure, I would evaluate these properties and offer them to my buyers with a profit to me. This was done with full disclosure to all parties so there would be no hard feelings from buyers or sellers.
Many times, I could insert myself between a buyer and seller for a larger piece of the action, not just the commission. This tactic is absolutely legal and ethical, if everyone understands with full disclosure of how much I paid, how much I am selling the property for, and how much I am making.
3. Taking Seconds
Another opportunity of being an “insider” is giving my seconds to buyers. Often, I was able to negotiate transactions that were good, but just did not meet my individual parameters. These pre-negotiated transactions were easy to turn over to my buyers, who were extremely happy to receive these opportunities.
4. From Buyer to Lister
Many times after negotiating a transaction with a seller, we found that the transaction did not meet my needs or my seller’s. I was put in the position where I was not able to close the transactions but could handle the marketing for the sale. Who knew more about the property than I did?
As you can see, you are presented with hundreds of opportunities when you become an “insider” investor in your real estate brokerage. There is no need to make rash decisions. Helping people achieve their goals will help you to become wealthy.
