I was talking with Nick Johnson last night about a comment I made in a previous post about giving my short sale leads away to someone else for a referral fee. Since my focus is not short sales, and to be honest I want nothing to do with them I was more then willing to give my leads up for a small referral fee. This however is a great example of why networking and having a group of like minded people to talk tois so important.
Nick read my comment and came up with a much better solution, one that would benefit both of us. Since I am a Realtor I could list the short sale on the MLS and then hand over the negotiations and all things short sale to Nick and his people. If he were able to agree to a price with the banks then I would get paid a 9% commission for being the listing agent. Sweet deal!
Now I know there are Short Sales aplenty around my area I just have to figure out how to market for them. I may come up with one here and there through my probate marketing but not many. I’m currently pretty maxed out with my marketing budget just with the probate mailers (stamps, envelopes, paper and ink add up). The budget will expand once I make my first deal, but for now any additional marketing will have to be creative and cheap. Here are some of my ideas
- Post Ads on Craigslist
- Network with other investors
- Network with other real estate agents
If anyone has any other ideas please leave a comment
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whatever it is you end up doing, simply doing something and taking action will quickly bring you results!!!!
So Scott, I'm assuming you're just listing the property the way a normal agent would and when you get an offer (or perhaps before I don't know how Nick works) they handle the negotiations?
So Nick and you aren't paid until the deal is settled and sold, agreed? (I mean I know that's true for you…..)
From what I understood Nick to be saying is that he is going to buy the property if the banks come down to his price. Then he'd pay me my agreed to agent commission. As for how he is going to find a buyer that is a question I'll have to ask him the next time we chat.
Here's how it works.
Scott get a short sale listing and that awards him a 3% listing fee
Scott then represents me as a buyer to that short sale awarding him another 3% buyers agent fee totaling 6% so far.
My team handles the negotiations and submits the offer on the A-B side
During which time, Scott then re-lists the property for me getting another 3% as a listing agent totaling 9% now. Now, we're on the B-C side of the transaction. While my team is negotiating, offers will come in and we'll accept, get the approval letter from the lender, go to title purchase the property on the A-B side, then immediately resell on the B-C side.
Scott does nothing but get commissions ,I get paid from the profit spread created by my team and my team gets paid out directly by me once its all done and over with.
does that make sense?
Sounds like a rather profitable way of doing business. Your team? Does it consist of Real Estate Agent? You and a negotiator? This area I plan to learn soon, I have a colleague with a negotiator, how do I determine if they are good negotiator or not. Sorry if this is the wrong area for these questions.
LeJon, it's certainly not my blog/site but I'm more than go over a few of the thing with you sometime. I'm sure you know how to get in touch with me by now