Are you one of the many new breed of Short Sale Realtors? Can you tell me why you are a Short Sale Realtor? It’s an honest question. One that should not require a whole heck of a lot of thought. So please tell me why?
This isn’t being posed as rhetoric. I really want to know why? You see when we speak to audiences around the Country. Audiences made up of agents and investor alike, the same question keeps popping up over and over.
That question being, “How can we make more money in real estate?”.
The answer, while quite obvious, always leaves me shaking my head. I get everything from wanting to be my own boss, to helping people, to meeting great people. Seldom in the top 3 answers is the statement that they want to make more money.
Buy lately, as we speak to more and more Realtors, a growing and surprising trend is emerging. They want to know how to make more money. I know why they feel this way. After sitting at a couple of closings and watching us and other investors take down checks for 5 figures on just about any deal, they look at their paltry commission checks and wonder why they can’t do the same.
It’s often made me wonder as well. I slum sometimes and visit some of the real estate social networks and I hear agents whining about how this buyer walked away and how this bank is such a pain in the tuckus and how they aren’t making any money and it makes me shake my head. I’m not insane, but I keep asking myself the same thing over and over. If you’re not making the money that you want to make, if the industry has changed too much, if the liquidation business isn’t for you…then why stay in it?
I don’t think that I’m alone in thinking that we’re all here for a short while so we should make the most of life. So why are you complaining about being an agent instead of grabbing life by the horn and controlling your own destiny…and paycheck?
I read a post today on my favorite real estate website of all time, Activerain, 😆 where this agent said she had something like 20 short sale listings and none of them were closing. So of course we all know what the Realtor handbook says, yep, get more listings.
I don’t seek out listings, maybe because I’m not a real estate agent, but I can tell you that if I right now had 20 people who had or needed to sell their homes to avoid foreclosure I would make a shi&load of cash on those deals. I mean so much money that I would take the year off. Maybe even next year too!
A few of us were hoisting some cold ones at a local restaurant here in South Florida and we were celebrating yet another successful, 5 figure check getting deal and we were actually laughing when someone brought up how the Realtor’s face looked when she saw the HUD.
We found this duplex in the hood that had a pretty good cash flow on it and new we had a buyer who would be drooling over the ROI. So we submitted a contract on the duplex for $30,000.00. Right away the Realtor said the immediate response of “the bank will never accept it”. I told her I wasn’t worried about the bank, as I only needed her Seller to accept it. The bank wouldn’t have much choice.
Yada, yada, yada, we get the approval for $35,000.00 we sell it to our buyer for $60,000.00 and we walk with $25,000.00 at closing. The entire deal took under 3 weeks. Meanwhile the Realtor walked with a little over $900.00 bucks, which she has to split with her broker.
So you tell me why she didn’t buy the duplex herself and then collect $25k at closing?
Next week we have a closing on a home that we got under contract for $160,000.00 and are immediately re-selling it for $200,000.00. We’ll be picking up a check for $40,000.00 while the agent will be picking up a whopping $6,000.00.
So in those two deals alone we will have pocketed $65,000.00 while the Realtor’s involved picked up a measly $7,000.00. We made nearly 10 times what the Realtors made. So why are Short Sale Realtors listing homes instead of buying them?
Now you see why if I had 20 Sellers in my pocket…ummm…I mean listings, we’d be booking a suite at the Venetian for a month!
So why is it that Realtors are not buying these deals instead of hoping for 20% of them to close? In all seriousness, please tell me if this makes sense to anyone. Below is a short poll. You can be completely anonymous but we’d love to hear what you have to say…and if you’re feeling a bit more courageous, leave a comment below.
FYI…you’re allowed to choose more than one answer.[poll id=”7″]
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