Have you ever thought about the benefits of partnering with real estate agents on your wholesaling deals? How can you, as a real estate investor, leverage these powerful relationships to your advantage, create a winning partnership?
Chris Craddock shares why building relationships with real estate agents can lead to explosive profits in your wholesaling business.
He shows you how to find the right agents and exactly what to say (and how to say it) to the prospective agent partner.
Employing this method in your real estate wholesaling business can lead to massive profits. Don’t miss this episode.
- The #1 reason why you should consider building a network of real estate agent partners
- The secret to building profitable relationships and how to identify the “right” partner agents
- The massive profit potential in creating win/win partnerships and how this method has led to 7-figures in Chris’ own business
- The benefits of being unrepresented
- The reticular activating system and how to use this powerful principle to manifest your goals
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What’s up, everybody. Welcome to another episode of the Wholesaling Inc Podcast. I’m Chris Craddock with REI Revive, and I cannot wait to spend a few minutes talking with you all about how agents and investors can help make each other a whole heck of a lot of money together. So one of the questions that I get all the time is, one, “Why should I have relationships with real estate agents?” And number two is, “How can I build those profitable relationships with real estate agents?”
To answer why, I’m going to tell a story about a good friend of mine. She’s a top producing agent in this country, in the whole country. She is one of the top agents in the world, really. And we were talking about investing, because I do a lot of investing myself, but I also have the retail team. And she said that she was very good at finding deals, but she never had the guts or the courage to do any investing herself, to pull the trigger on any deals until something happened that changed her life. She was reading in a business magazine, and one of her top clients for years and years and years was being interviewed. And he told this story. Here’s the story: essentially what it said was he had met a real estate agent that changed his life. He made, what he said was about $25 million over the course of a few years through development projects, through fix and flip deals, just finding these properties that she kept bringing him.
And she was like, “I am that agent.” And she thought she had done things well, because, sure, she made a few million dollars, which is great in commissions and fees with that, but she realized that, “Oh my gosh, all those years, I was just giving away deal after deal. I was giving away money to that.” And what it made her realize is that agents all over the country are just like her.
So what I have found, too, is, man, there are so many real estate agents that find deals, and then they just put them on the MLS. And I’ll tell you, if you’re their go-to person, you are going to be able to have so much opportunity. So I hope that makes the point is these real estate agents, all they’re doing, day in and day out, is talking to sellers, so they have opportunities to sell these properties where the seller says, “We just want to get this property off my hands.” They get an inherited property, they get whatever where it is, and they just want to get it done.
So if you are their go-to person where they think, “Oh man, this property is distressed. This property has issues. I need to call somebody.” Boom,” I’m going to call my buddy, Chris. I’m going to call my buddy,” whoever it is, “and just tell him I’ve got this property that I could sell off market.” You will win. So I hope that makes the point why. These agents are getting deals all the time, and they’re either giving them to somebody, or it’s going off market.
Now, here’s the next question, “How do I build relationships with these agents?” All right. So here’s the way, maybe I don’t know any real estate agents, maybe I just have one agent that I do business with. How do I build relationships with these other ones? So what I would say is this, if you’re ever driving by properties, we do it every day, just to take down the names. Just like when you go driving for dollars. You’re driving for dollars, you write down the name of a distressed property. Well, this is what you do. You see an agent’s name on a sign, you just write it down. Or you’re driving and you see it, and you just make a phone call right then and there.
But I’ll tell you, if you talk to one agent every single day… And here’s your script, here’s what you say, yeah, I’m just going to be me, “Hey, this is Chris Craddock. Is this John Smith?” They’ll say, “Yeah.” Say, “Hey, I’m calling because I’m a real estate investor, and I just wanted to let you know if you come across any properties that are in any sort of distress situation and they need to sell fast, I would love to work with you. And I would love to let you be my agent. I would love for you to represent me. And not only that, I’d be happy to have you represent me on the listing of the property too, if I choose to flip it. Would that be something that you’d be interested in?” You know what every real estate agent in their right mind is going to say? “Yes, let’s do this. I’ve got a new client. This makes it easy.” So maybe they won’t have anything, but here’s the deal, you now got a new friend that will think of you.
Now, here’s the day. Here’s what you’re going to want to do with that. You’re going to want to put them in a database, in your CRM, labeled agents. And maybe once a month, it doesn’t have to be a lot, once a month, whether it’s the MailChimp account, whatever the account is, you’re going to just send something out, just reminding everybody, just say, “Hey, I just wanted to remind you… It was great chatting with you before. I just want to remind you, I’m still looking for distressed properties. If you come across anything, I’m happy to let you represent me.” Boom.
Here’s one other thing, too, that I would throw out. Some real estate agents in some places, there are some states, like I know Maryland doesn’t allow you to have dual representation, and some agents just don’t like the idea of dual representation. So you can say to them, if they say that they don’t want to do dual representation, you can say, “Hey, I know you don’t like dual representation, but what I will do is this, I’ll go unrepresented on the deal, and I’ll let you list it for me if I choose to flip it.”
So with that, here’s why you would say you’d go unrepresented, the way that most listing agreements for a real estate agent are drawn up between the real estate agent and the seller, let’s just say it’s a 6% listing. If you take a 6% listing, you keep 3% of the sale, the listing agent does, and you give 3% to the buyer’s agent. Well, here’s what happens if there is no buyer’s agent, the listing agent gets to keep all 6% of it. That’s the way it’s drawn up. So you can just say to them, “Hey, I’m happy to work with you. I’m happy to let you keep all 6%.” They don’t want to do dual representation. “Look, I’ll be unrepresented.” Then they keep all 6%, and there’s no problem with it.
So you’re always, always, always thinking with them, “What’s in it for me,” on their forehead. Every time you see everybody, I’m telling you, whether it’s a seller, everybody in the world, if you just know that they’re thinking, “What’s in it for me?” And you’re thinking, Dale Carnegie in that book, How To Win Friends and Influence People, says this, “Speak in terms of other people’s interests.” So real estate agents, even though sometimes they don’t make any money, they’re not non-profits. They want to make money. So when you’re helping them do that, you can win.
So with that said, you just want to start building that database. Just like you’re prospecting for sellers, you’re prospecting for agents. And I’m telling you, agent after agent after agent comes across these off market, under market deals. So that’s what I would say is really important. You just start calling them.
The last piece that I would throw out there is any event where you meet an agent, just go be friends with them and remind them that you’re always looking for deals. Just always, always, always. There’s something called the reticular activating system, the RAS. And here’s how the reticular activating system works, so if you look around your room right now and look for everything that is black in your room, you’ll look around, you’ll see all these things that are black, then you close your eyes. And I say, “All right, now tell me everything that’s green.” You’re going to miss out on a bunch of things, because you were focused on things that are black. The same idea is when you buy a new car, all of a sudden you recognize those cars on the road. I bought a Raptor. So when I bought the Raptor, now I recognize. Every time I see a Ford Raptor on the road, I recognize it, because it’s in my reticular activating system.
So the thing that you want to do is, one, for you, you’re looking for real estate agents. Anytime you see them, you want to go get in their RAS and let them know, “Hey, if you come across any deals, I’m your guy. I will let you be my agent. I’m not going to beat you up on the commission. I’ll pay you full commission. I’ll pay everything there. I want to work with you.” So when you’re doing that, when you’re keeping them top of mind, then they’re going to keep you top of mind and they’re going to bring you a lot of deals.
So I hope that helps. I’m going to do another episode here in the future, explaining how to work a pay structure with an agent. But I’ll tell you what, the first thing is to build a good relationship with real estate agents. And I’ll tell you everything in life is about relationships. So if you can find agents that know, like and trust you, that think of you whenever they think distressed properties, you’re going to make a fortune, you’re going to make a lot of money, and they’re going to be so happy to give you these properties.
Well, I hope that was helpful for you. And if you’re interested in learning more about how to turn your dead leads into huge profits, please be sure to check out my REI Revive system. Just head over to wholesalinginc.com/revive. Again, that’s www.wholesalinginc.com/revive, and schedule a call with me or somebody from my team to learn more about whether this program would be good for you and your business. And I’ll tell you what, it’ll be so much fun to make piles of cash together on leads that have been just sitting dead in your database. Again, thanks so much for tuning in, and I look forward to seeing you on the next episode.