Taking the time to inform a realtor that you will not bid on a real estate investment opportunity and presenting him / her with the reasons why is an important step in the communication process for a number of reasons. It helps you to create a relationship with the realtor based on trust, transparency and shows a respect for his / her time.
Showing a realtor that you are experienced and have a set of investment guidelines that you follow while also informing that the property doesn’t cashflow provides the required information for him /her to discuss with the seller and assess their flexibility.
Remember, most realtors have little / no investment experience and their only goal is to complete the sale of the property. Whether they sell a property for $1 million or $1.1 million doesn’t make a significant difference in their commissions (a difference of $3,000 to $5,000 in commission assuming their commission rate is 3-5%), it is in their best interest to bridge the gap between asking and closing price as quickly as possible to maximize their return on investment for each hour they work
Here’s a sample email that covers the items identified above. Feel free to use it as a template for your future communications. It’s one of the keys in preparing the foundation for a mutually beneficial relationship with the realtor that will make him / her want to go out of their way to work with you in helping you to grow your real estate empire.
That’s today’s lesson. Every day, a bit at a time, you’ll build your momentum towards your path to financial freedom. It just requires taking action. So take an hour today and perform 10 real estate assessments and 5 emails. Go get ’em tiger!