Hi - I'm a brand new agent (just a few weeks into the business), our office got a call from a "new" investor stating that he only wanted to work with a new agent. Anyway, I have been working with looking at properties on the MLS, I guess you would call them flip & fix, but he is lowballing these properties by 40 to 60k to pay for repairs, agent commission, and still make the profit he is desiring. Well I was excited at first to have a buyer, but now I'm frustrated because we are in a seller's market, and agent's that we present an offer to are basically almost laughing at the price he's offering. He is also offering cash, 10 day closing, and no contingencies, but WE are getting nowhere, and I am getting discourgaged...

Any advice would be appreciated.

You should advise him of the type of market that you are in. Show him what comparable homes in that area are selling for and let him know that lowballing isn't the proper strategy in that market. These are you duties as his agent. If he insists on lowballing, I suggest politely removing yourself from his employment, and refering him to a more suitable buyer's market. don't waste your time if he doesn't trust your expertise.

I've had nothing but bad experiences with new investors. Given them up.

I haven't had "bad"experiences, but they're just like first time home buyers, except they want to send lowball offers. Lot of education and training you're going to have to do. Easier to spend your time with someone an investor who knows what they want and how to get it, but payoff can be great because they may stick with you for a long time.

Here's what I'm doing with all of my prospective investors: Send them a free copy of "The Millionaire Real Estate Investor" by Gary Keller (of Keller Williams Realty Int'l, which is my company, BTW).

Have them read it, fill out the the worksheets, and determine what they're specifically looking for in property. They can then communicate it to you so you can look for exactly what they want.

Explain to them that this process helps both you and them in the long run. It helps them because they have set criteria that the can act on immediately and be the first offer into a seller.

By doing it this way, you'll need to read the book yourself and really learn it in case they have questions. Plus, you can really be the "expert" for them and be their Realtor for life.

I bought a case of these books about a month ago, and have handed out four books so far to investor prospects -- and snagged one for myself. I plan on doing investor seminars, based on the book (and having a mortgage person in tow to explain the financing side and help pay for the seminar), and doing a few book giveaways during the seminar.

Just some ideas for you. But believe me, the quicker both you and your investor/buyer are on the same page, the better off you both will be.

Oops, almost forgot - I'm sure there are other books out there you can base your "education" of investors on as well. I like MREI, so I use it. You don't have to, though.

Your "investor" has most likely taken one of the "courses" on "investing". One of the recommended methods of obtaining information is to develop a working relationship with a "new" agent. The reason a "new" agent is recommended by some of these courses is that they are typically "hungary" and "have a lot of time".... could be true but could be a total waste of an agents time.

What these "investors" are looking for are motivated sellers.... not many in a sellers market as most of us have at this time... but you will always have some if you have a method of identifying them. This is not generally very possible for a new agent working in traditional real estate... properties already on the MLS have far less potential for being "deal" than properties not yet on MLS but have motivated sellers. A "deal" is generally 70% of AS-IS Market Value. Sound familiar?

To work with these investors, an agent would have to modify their marketing and research to identify motivated sellers which is a niche market, and may not be worth the effort for most agents.

How do you identify motivated sellers, I mean how do you find them BEFORE they are in foreclosure, OR before they list the property on the MLS?

It is a niche market. Generally brokerages that deal in REO properties identify key characteristics of their lender clients REO source and tap into that source not only from their lender clients but other lenders sources for the same motivated sellers.

Other potential sources are probate, divorce, relocation, and economic factors which have changed for an area or group of people. These are not well suited for the typical newer agent as more creative financing is often best suited and fees plus commissions are more applicable due to frequent lower sale values... but not always. Motivated buyers can be found in every financial grouping and location.

You just have to develop a marketing program directed to that market niche. This can be a much slower market to develop than traditional real estate and requires more knowledge of all real estate matters including a full understanding of all types of mortgages and how they work, knowledge of legal processes and procedures, and a knowledge of how to perform at least a nominal Due Diligence to see if any potential of a deal even exist with the motivated seller.

Knowledge and ability to make a deal work even when any traditional method would not work or be feasible is the key to success in this market with that type investor and seller. Problem is the investor does not yet have the knowledge or tools and neither would a "newer" traditional real estate agent.

That sounds like Realty Check kind of just described the "whole other world of real estate" rather than what is availabe most of the time on the MLS and to the general uneducated public. Those niches he described are some of the basic finacial distressed situations you look for when searching out bargains.

The thing is you have to dig through various records at the court recorders office and other sources of info then start some kind of marketing campaign pto those eople. Most good gurus have campaigns you can copy for certain niches. (Not reed he's just the jounalist type)

I am surprised to see how many people and agents in this little town of mine go to the MLS soley for Investment properties.

And, their is a ton to learn in Real Estate.