Step-By-Step Program Generates More Deals With Less Effort
Lorena, one of our mentor/students for the One On One Coaching Program has come up with a killer new program to source more short sale deals using real estate agents.
Whether you are flipping houses, doing creative finance or looking for short sales everyone can benefit from learning better ways to find more deals, and Lorena has recently agreed to share one with all our Mastermind members. It’s a great one, and she is using right now!
She uses this program to find more deals for her real estate investing business, and here’s how it works.
Here’s How The Program Works, Step-By-Step, To Source More Short Sale Deals Through Real Estate Agents
First, you target solo real estate agents or small brokerages with a few realtors in the office. Ideally, you find agents who are fairly new to the business who haven’t become too jaded yet or too disheartened about what they do for a living.
Second, you want agents who have already closed a transaction or two, so that they have a little bit of experience under their belt, but, because they are new and recently rewarded from their closed deals, are still hungry.
What Lorena does is sit them down and review the Texas pre-foreclosure and short sale process with them.
She’s located in Texas, and she was kind enough to share her Power Point presentation with everyone who’s a member of the Monthly Mastermind here. You can see her powerpoint at the link below…
If you’re in another state, you can use Lorena’s Power Point as a template for creating your own presentation.
Lorena purchases the Roddy Report and gives each of her real estate agents a specific geographic area so they are not competing with one another.
The Roddy Report is a local Texas foreclosure listing service, but you can also get these types of listings from RealtyTrac (see the link below). You can see the Roddy Report at this link… http://www.roddyreport.com
This could easily be spread to other lists (30/60/90 day lists, bankruptcy lists, etc.).
You can take a look at some of the pre-foreclosure letters that her real estate agents are using at the following link…
CLICK HERE TO SEE THE PRE-FORECLOSURE LETTERS
The realtors can modify the letters to suit their style, and you can provide them with these types of letters or if you already have letters you are using successfully, just share those with them.
Specific Territories Allow Each Real Estate Agent To Source Deals Without Competing With One Another
Each real estate agent is then assigned a specific geographic area. That way they are not competing with one another.
When one of the real estate agents finds a potential equity deal, they get the listing and bring you the deal for evaluation.
If you are interested, then you pick it up, plus get paid a $500 referral fee from the agent so that you are paid at closing for your own purchase.
On the other hand, if you are not interested in picking up yourself, you still get paid the referral fee. The agent gets paid too at closing, so everyone wins no matter how things go!
Working the Program With Short Sales
If one of your real estate agents finds a short sale, then they bring it back to you for evaluation.
If it’s a deal you are interested in, then the agent gets paid a $500 referral fee for finding the deal for you and doing the marketing to source it to you.
If it’s a deal you are not interested in, then, if you are a real estate agent yourself, you can list it, and run it through someone else’s short sales process that you have outsourced.
However you are involved, the real estate agent does a warm hand off for you to the homeowner. That way you are never stuck in the position of making cold calls.
Compensating the Real Estate Agent If You Take Over the Listing
If you get the listing and are successful in selling the short sale to either an owner occupant or an investor, you can pay the realtor a $500 referral fee. If you get the buyer, it’s nice to give a little extra and pay the realtor a little bonus, depending on the deal.
Giving Referrals Back To the Real Estate Agent
If the homeowner needs to find a new place to live, you can let the realtor have them, no strings attached. Remember, you are interested in the primary property only, so it makes sense to give this potential prospect back to the real estate agent to thank them for their hard work.
A Win/Win Strategy To Source More Short Sale Deals
The realtors are happy, their costs are covered, they feel productive, and you should make a big deal out of their efforts at your company meetings, which you should invite them to attend.
If you don’t already have company meetings, or if you’re just solo working out of your home, you can still do a Thank You lunch at a local restaurant and invite the real estate agents you are working with.
Remember, everyone likes to be recognized for their efforts and this is a small investment for you to make in a system that can generate a great deal of income for you.
You win because your costs are covered and you can spend more time working directly with warm deals, not looking for leads. It’s a good thing!
Your Comments Welcomed
Please post comments if you have any questions, and also let us know how this strategy is working for you. It’s definitely something everyone should be integrating into their real estate investment lead generation programs!
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