Having conversations with real estate agents is a simple and easy process, but many wholesalers tend to overthink it.
They get intimidated by the process or by just having to call someone they don’t know, and before you know it, a good business relationship gets squandered.
Relationships, any relationship, has to take time and relationships in business are just as valuable as your relationship with friends and family. So I’m going to give you a quick, step by step primer on how to start and build those connections.
Step 1: Calling the Realtor
The first step, as they say, is sometimes the hardest. And this step can be very hard for some people.
But connecting with the realtor on the property is essential because they not only tell you about the property itself but can let you know a little bit about the seller and the situation they might be in as they’re trying to sell.
And that should always be a part of your conversation with an agent – ask them about the property. What’s going on with the house?
After they explain, thank them for giving you that information.
Step 2: Ask Follow-Up Questions
Always…always, always, always ask follow-up questions.
Follow-up questions are where you’ll get the meat of the conversation, we’ll say. The reason being is whatever answers the agent gives you when you first call is going to be their standard response whenever people ask about a property they’re working on.
They’ll describe the house – the features, the square footage, whether it’s dated, modern, etc. And all of that is great because it gives you a basis for what type of house this is and what it offers.
Now, hopefully, you’ve already looked up the house on the MLS or Zillow or Open Door and you know some of the basics, however, it’s good to hear about the house from the realtor because they’ve been there and they have more intimate knowledge on the property.
When asking follow-up questions, be prepared to have your calculations ready. So for example, if you’ve looked at the for sale price and you’ve calculated that this price is too high for needs to be done on the property, tell the agent that and ask if that number is what the seller is requesting or if they just aren’t seeing the reality of the current market.
Step 3: Gain Alignment with the Realtor
When you gain alignment with the realtor, one of two things should occur:
Decide if the house is worth pursuing and if not, ask the realtor if they have any other original conditions or properties that need work that you can look at
You build rapport with the realtor, so you understand where the seller is coming from, and work together to find an offer that works for everyone
Note that in both of these incidences, you can still build a relationship with the agent.
In the case where a deal with this particular property isn’t going to work, ask if the agent has other properties where a deal can be done. If there are, then great and you can start discussing those.
If the answer is no, that’s still okay because it means that, at this moment in time, the agent doesn’t have any properties for you to look at, but they can keep you in mind when the time comes when they do have those properties.
In the second case, you look for options that will work for both you and the seller.
This is the point where many wholesalers let the ball drop. You get scared because of the number you’ve calculated and instead of calling them back, you send them a text or an email with your offer number.
Step 4: Have the Call
Guys…have the call.
Call the realtor back and, should they ask and they will, what number you’ve come up with, tell them. If you’ve calculated your ARV and MAO correctly, then tell them your number and let them know, “Hey, I don’t think I’m the buyer for you on this.”
And then explain why; in a lot of cases, the amount of repair work that needs to be done outweighs the listed amount.
After you explain your number, still offer to help the realtor and the seller out. If they’re open to your number, then great!
But if they’re not?
That’s fine – you still follow up, especially if the property is still sitting on a listing.
You can call or text the realtor, reintroduce yourself, and say “hey, my first offer was rejected, and I was just checking in as I notice the house is still available, but there hasn’t been any moment. Just wondering have the sellers come to terms with where this house needs to be priced for it to sell.”
Something along those lines and to the point where there’s no blame on the agent and allows them the space to see the reality of the seller and where that property needs to be priced.
I go more in-depth on this process in this video:
Once you start following this sequence, your outcome is either going to be yes to a deal or no to a deal.
More importantly, speaking with realtors and real estate agents through actual conversations does more to build up a relationship than just sending a text out of the blue.
Because when you’ve built that rapport with an agent, they are far more willing to send deals and leads your way.
If you’re curious about seeing this in action or getting more info on how others are doing this process, then what are you waiting for?
Come join us at AstroFlipping!