I was told by one large rehabber/builder to not reveal the fact that we are looking to be investors along with being agents with the particular Century 21 firm. The reason is because we would essentially be competing with the broker in culling good deals. Is there a basis for concluding that inside information gets funneled out to just certain reps that can best profit by not listing with the seller but buying outrightly the property. Many short sales and foreclosures are occurring. Perhaps I need to better know broker policy when distressed sellers go to an agency. As mentioned before his suggestion was to not tell a broker about your interest in investing along with selling as an agent. Evidently this implies that the MLS is the aftermath of data on very good investment opportunities.

Appreciate any thoughts on the matter!



Good investing!
rpg

There are many short sales going on here that have never been listed in the MLS at all. This is not a fair market sale and the bank is getting scammed every time. They all get bought by investors associated with the LA and go back on the market for resale within 30-45 days with new paint and carpet. The investor is netting about 30K per flip. One of these days they will wake up and see the light. Let's hope they are not too far under by then to dig out.

Thanks bsareo for your insightful response. I take it that these investors naturally have relationships with agents that they go to for quick resale purposes. They probably call the agency and ask for the particular agent that they are working with and then an arrangement is made. I'm curious though as to whether short sale entries in the office can be subverted from the normal upboarding (first agent in the office is given the first cold call) procedure so that preference can be given to certain agents or the broker and possibly with brokers with deep pockets can buy the property outrightly? Without revealing this to other agents for selling purposes or even giving agents the opportunity to invest in a short sale himself or herself? I could possibly see this happening if the receptionist at the desk were to ask the caller the reason for a call and if it is determined that the caller is distressed or facing bankruptcy or foreclosure, then that call is forwarded to the preselected broker or agent. Has anyone experienced or known of this? As mentioned before, agency upboarding procedure is supposed to allow for the first agent in the office to be entitled to the first cold call. Don't know if there are any Dept. of State rules on this or ways to monitor this while physically in an agency. This cannot be as readily done if a walk in the office candidate is in ear shod of the agents in the office. Any insight on this would be appreciated. The one agency we may be potentially involved with is a combination agency/construction company as well. Many thanks for any insight on this!

rpg

I find it amazing that a short sale gets approved that quickly. Most short sales in my area take weeks to get approved and often by the time the bank gets around to approving them, the buyers have walked and purchased another property.

Yes, I agree with you Perky REALTOR. The issue isn't the time factor between the introduction to conclusion of the short sale process which as you say should logically take weeks, but the method of obtaining the short sale opportunity to begin with.
Thanks
rpg

I have never been in an office where calls where handled the way you describe. Usually, an agent has 1/2 the day or the whole days worth of calls. Every office has their own policy and it is of no concern to the real estate commission how it is enforced.

What you are describing with short sales does not happen here. Our short sales take forever to close and most of them don't close. 10% of the short sales that went under contract last year got foreclosed while the buyer was in the process of buying.

Sounds like you need to change agencies.

Our office has a set floor time schedule that agents sign up for. Agents wishing to have floor time agree to the schedule rotation. The agent who is "up" is the agent that gets the calls, unless that agent is busy with a customer and then the call goes to the agent who is 2nd up.

I do know of one office where phone calls rotate around whatever agents are there - Mary gets call 1, Joe gets call 2, Chris gets call 3, Mary gets call 4 - but what a nightmare to try and keep track of THAT.

IMO, what you are describing is one of the reasons for the 90 day flip rule for FHA financing. To me this does not sound like an ethical way to do business. I would look for another agency.

Regardless of floor duty time slots, there may be agents within a given office who specialize in short sales--or any other type of sale. How those leads are dealt out is up to broker office policy.

For instance, I never get a relocation lead, and the relo folks never get one of my REO leads (though REO leads rarely come into the office--they come to me directly through my own contacts).