AN old friend of mine has informed me that while "they don't want to work with a Realtor", they'd love to know about any of a certain category of property that might might pop up.

I don't want to appear patronizing or insult this old friends intelligence, but how do I explain that I can help them find a home AND do all the crap work for them in the deal... and it doesn't cost them a penny? They are obviously very anti-agent and seem to have the idea that it will save them money to not use a Realtor.

-jeff

You could tell them that if the property is listed by a REALTOR then they may as well use you anyway. LOL...there will still be commission paid, may as well give some to their old friend.

I guess they get the idea that they will save money because some sellers say "I have to charge X because of commissions. If it weren't for the darn realtor whom I hate to admit I need, we could take less for the property.."

Why people think REALTORS should just go around out of the goodness of our hearts, doing real estate philanthropically, without pay, is beyond me.

Have they said why they don't want to use a REALTOR?

I don't think you can develop an approach until you know THEIR specific reasons for not wanting to use a REALTOR. Their reasons might be different than what you think.

Some investors are taught through seminars that if you are buying through an agents listing to try to get them to reduce there commission to just the listing side so the investor get's the house for 3 percent less.

Jeff,
Tell him since he does not want to use a Realtor you would be happy to help him as a partner. He provides the money and you provide the expertise and split the profits.

Good points all around. I might play for a little while (calling him with reasonably good deals) and see how he responds. Although.. it's not like great deals are showing up under your nose all day long without some effort on your part. If you have time and energy to start hunting down good investments, it would be a great learning experience for you and give you a good reason to chat about real estate with others.

Maybe you could tell the guy you're working with another investor looking for a similar property, so you'd be happy to let him know about ones you find that YOUR guy doesn't want!

I dunno... be pleasant, helpful, un-desperate (I know you aren't). See what happens.

Is it just my office, or what...but everyone seems to think that agents set the commission - in my office, it's the broker. My broker would have a cow if one of us said "hey, we're cutting the commission in half!"

It would NEVER happen.

Commissions are negotiable, according to New Jersey lay I have to say that.

This is one of the more interesting posts I have read on this site. A lot of deals can be done and a lot of money can be made outside the context of being a realtor, while still doing the business of Real Estate.

Paul Oaks is headed down the right track and many agents on this page who are doomed to fail in the busineess might be able to establish a successful career if they can see alternative paths
to the realtor box.

Jeffo

You say old friend, investor, and a certain category.

I say why in the h*** do you want me to do that for you. What are your intentions, and if I were to find you such a property where are you going to get the money to swing the deal? And why shouldn't I be involved in the deal and be paid for my time and effort? I doesn't cost you anything to go into your office all week yet you expect a check on payday, why is that?

When I first started my career I had lots of these time wasters. Let them know your in business, it's not a hobby for their fantasies or freeloading. I would get "friends" saying sell my house for me free, after all it's doesn't cost you anything, or find a house for me and kick-back the commission after all it doesn't cost you anything.

I found the best way to make clients is to build rapport and show your knowledge. I was fortunate to pick up 2 investors by simply being on top of things.

Allow me to eleborate just a little.

When I say "old friend", well, she is that but more importantly she's also a present and old client of the business I run. She's spent a considerable sum on my services in the past (not as a Realtor®). She is now married, and her husband owns several rentals and they just got a chunk of money and want to get several more investement properties. I think HE in particular is the one who doesn't want to use a Realtor®; he has purchased several investment properties in the past and apparantly does not see the need for one and may or may not be under the perception that using one will cost him money one way or another.

They are thinking they can spread their investment money farther by purchasing under owner-carry contracts and asked me to keep an eye out for those, but prefaced that by saying not to spend too much time or energy on it because they don't want to use a Realtor.

So there's some bias already in place. These are very nice people; I went to their wedding. I want to handle this very delicatly. I would like to gradually reel them in, so to speak, and help them understand that at least on a listed property, with commission already in the contract, using me saves them a bunch of hassle at a minimum. And does not cost anything.

Thanks for all the comments so far, guys and gals!

-jeff

Are they going to make out like bandits if they dont use a Realtor? From the sounds of it they do pretty well and want to continue to do so. Explain to them that it is the cost of doing business for the seller. And who will be representing their best interests?

Oh yes, always, but my broker says she doesnt want us to negotiate down!

I'm new but I've already come to understand that I can't put my eggs in one basket. A couple of very close friends have said, yes, I'll work with you, send you my friend whose gonna buy, etc, etc...but when I call them up, I almost get mad when they don't ever answer or return a call, now I don't call them, and use that energy for other work. I say be prepared to ignore the whole idea of working with her as an investor.

You can also explain to them, if the property is listed with an agent, that the agent will be working FOR the seller and AGAINST THEM. Don't they want someone to represent THEIR best interests?