As a real estate investor, creating and building relationships is key for you to have great resources. An especially important relationship to have is with a real estate agent. Having that mutually beneficial collaboration can lead to explosive profits and, ultimately, 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.
How To Find Great Real Estate Agents To Partner With On Your Wholesaling Deals With Chris Craddock
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?
I cannot wait to spend a few minutes talking with you all about how agents and investors can help make a whole lot of money together. One of the questions that I get all the time is one, “Why should I have relationships with real estate agents?” Number two is, “How can I build those profitable relationships with real estate agents?” To answer why, I’m going to tell a story of a good friend of mine. She’s a top producing agent in the whole country. She is one of the top agents in the world. We were talking about investing because I do a lot of investing myself but I also have the retail team. 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 a business magazine and one of her top clients for years was being interviewed. He told this 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 a few years through development projects, through a fix and flip deals, just finding these properties that she kept bringing him. She was like, “I am that agent.” She thought she had done things well because she made a few million dollars, which is great in commissions and fees with that but she realized, “All those years I was giving away deal after deal. I was giving away money through that.”
What made her realize is that agents all over the country are like her. What I have found too, is there are so many real estate agents that find deals and then they put them on the MLS. If you are their go-to person, you are going to be able to have so many opportunities. I hope that makes the point. These real estate agents, all they are doing day in and day out is talking to sellers so they have opportunities to sell these properties for the seller who says, “We want to get this property off my hands.” They get an inherited property and whatever it is. They want to get it done. If you are their go-to person, where they think, “This property is distressed. This property has issues. I need to call somebody. I’m going to call my buddy, Chris. I’m going to call my buddy, whoever it is and tell him I’ve got this property that I could sell off-market.” You will win. I hope that makes the point why. These agents are getting deals all the time and they are either giving them to somebody or it’s going off-market.
<blockquote>Speak in terms of other people’s interests.</blockquote>
Here’s the next question. “How do I build relationships with these agents?” Here’s the way. Maybe I don’t know any real estate agents. Maybe I have one agent that I do business with. How do I build relationships with these other ones? What I would say is this. If you are ever driving by properties, we do it every day, take down the names like when you go driving for dollars, you write down the name of a distressed property.
This is what you do. You see an agent’s name on a sign, you write it down or you are driving and you see it, you make a phone call right then and there. If you talk to one agent every single day, here’s your script. I’m going to be me. “This is Chris Craddock. Is this John Smith?” They will say, “Yeah.” Say, “I’m calling because I’m a real estate investor. I wanted to let you know if you come across any properties that are in any distressing situation and they need to sell fast, I would love to work with you, let you be my agent and for you to represent me. Not only that, I would 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 would be interested in?”
You know what every real estate agent in their right mind is going to say, “Let’s do this. I’ve got a new client. This makes it easy,” Maybe they won’t have anything but here’s the deal. You’ve now got a new friend that will think of you. Here’s what you are going to want to do with that. You are going to want to put them in a database in your CRM labeled Agents. It doesn’t have to be a lot but once a month, whether it’s MailChimp account or whatever the account is, you are going to send something out just reminding everybody and say, “It was great chatting with you before. I want to remind you. I’m still looking for distressed properties. If you come across anything, I’m happy to let you represent me.”
<img class=”wp-image-19902 size-full” src=”https://www.wholesalinginc.com/wp-content/uploads/2021/07/703WICaption1.jpg” alt=”WI 703 | Real Estate Agents” width=”600″ height=”400″ /> Real Estate Agents: Agents are getting deals all the time and they’re either giving them to somebody or it’s going off market.
Here’s one other thing too, that I would throw out. Some real estate agents in some places, there are some states like Maryland that don’t allow you to have dual representation and some agents don’t like the idea of dual representation. If they say that they don’t want to do dual representation, you can say, “I know you don’t like dual representation but what I will do is this. I will go unrepresented on the deal and let you list it for me if I choose to flip it.”
With that, here’s why you would say you would 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 say it’s 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. 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 say to them, “I’m happy to work with you and let you keep all 6%.” If they don’t want to do dual representation, I will be unrepresented. They keep all 6% and there’s no problem with it.
You are always thinking with them, “What’s in it for me?” on their forehead. Every time you see everybody, whether it’s a seller or everybody in the world if you know that they are thinking, “What’s in it for me?” and you are thinking Dale Carnegie in that book, <a href=”https://www.amazon.com/How-Win-Friends-Influence-People/dp/0671027034″><em><u><i>How to Win Friends & Influence People</i></u></em></a><em><i>, </i></em>who<em><i> </i></em>says this, “Speak in terms of other people’s interests.” Real estate agents, even though sometimes they don’t make any money, they are not non-profits. They want to make money. When you are helping them do that, you can win.
<blockquote>When you’re keeping agents top of mind, then they’re going to keep you top of mind and bring you a lot of deals.</blockquote>
With that said, you want to start building that database like you are prospecting for sellers, you are prospecting for agents. Agent after agent comes across these off-market, under-market deals. That’s what I would say is important. You start calling them. The last piece that I would throw out there is any event where you meet an agent, go be friends with them and remind them that you are always looking for deals. There’s something called the Reticular Activating System, the RAS.
Here’s how the reticular activating system works. If you look around your room and look for everything black, you will look around and see all these black things, then you close your eyes and I say, “Now tell me everything green.” You are going to miss out on a bunch of things because you were focused on black things. The same idea is like when you buy a new car. All of a sudden, you recognize those cars on the road. I bought a Raptor. When I bought the Raptor, every time I see a Ford Raptor on the road, I would recognize it because it’s in my reticular activating system. This thing that you want to do is one, for you, you are looking for real estate agents. Anytime you see them, you want to go get in their RAS and let them know, “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 will pay you a full commission. I will pay you for everything there. I want to work with you.”
When you are doing that and keeping them top of mind, then they are going to keep you top of mind and they are going to bring you a lot of deals. 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 the first thing is to build a good relationship with real estate agents. Everything in life is about relationships. If you can find agents that know, like and trust you, then think of you whenever they think of distressed properties, you are going to make a fortune and a lot of money and they are going to be so happy to give you these properties.
Real Estate Agents: If you can find agents that know and trust you and think of you whenever they think distressed properties, you’re going to make a fortune.
I hope that was helpful for you and if you are interested in learning more about how to turn your dead leads into huge profits, please be sure to check out my REI Revive system. Head over to 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. There will be so much fun to make piles of cash together on leads that have been sitting dead in your database. Thanks so much for tuning in and I look forward to seeing you on the next episode.
About Chris Craddock
A nationally certified Life Coach in Leadership and top 20 in all of Keller Williams Realty International, Chris Craddock is the host of the Uncommon Real Estate Podcast, a Realtor, and entrepreneur who runs multiple successful businesses in the Washington DC Metro area (and Richmond, VA). Chris and his companies consistently bring in over 5 Million in revenue year after year. His team, The Redux Group, sold just over $160 million in volume in 2020. Chris has been married for 20 years and is the p roud father to six beautiful children.