There are people who are real estate agents and there are people who are investors, but you don’t often come across people who do both. Frank Jr realized that there are huge advantages to being able to offer sellers a range of solutions if you want to leave with a deal.
Sometimes, when you visit a house as an investor, you realize that it would be a great house to list. You’re thinking to yourself, he really shouldn’t discount this house, but you don’t want to walk away from a deal. You know the seller would get a better price if they listed it with a professional agent. Frank’s solution is to partner with an agent so that he can always offer the best solution for each individual seller. He gains credibility and builds rapport with the seller because he is able to do the best for them. And if he can’t help them, he’ll put them in contact with someone who can. His people-centered approach relaxes sellers and makes it much more likely that he’ll leave with a deal.
The personal touch is very important. Frank prefers to visit the house and meet the seller face-to-face. When he goes to the appointment, he always goes with a professional agent. The agents may know people that he doesn’t and have their own network of investors, so they can make a sale quicker. He has five partner agents that he works with and makes sure that everyone gets a fair cut of the deal. If he buys the house, then the agent gets a percentage of that. If it’s a listing, they’ll list it and then Frank gets a referral fee for that. It’s a win-win arrangement that works for everyone.
Being natural is really important. Coming across as too salesy can kill a deal dead. Have a real conversation, get to know your seller, be human. People want to do business with people they like.
Never buy something that nobody else wants to buy. That’s a sign that it’s not a good deal. If you can’t wholesale it, don’t buy it. Everything you buy should have multiple exits. If there’s only one exit on a property, don’t buy it. Pick a price point that you’re comfortable with and stick with it. More expensive houses mean higher risk. When you have your model that works, stick with it.
The key to getting deals? Make offers. If you don’t make offers, you can’t win.
Watch and Learn:
Listen and learn:
- The advantages of being both an investor and an agent.
- Why it makes sense to partner with a professional agent.
- Why a people-centered approach works.
- How to spot a good deal.
Mentioned in this episode:
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