Stop Wasting My Time!!!

By
Real Estate Agent with Cherry Creek properties FA100044492

Houston Real Estate Investors Wasting Time on Too Many Offers

I just got off the phone with an investor who I have recently started working with. I had to refer him to another agent because I just couldn't work with him anymore. We put 4 contracts on 4 different properties and we lost all of them to other investors. One of the homes had 15 contracts on it in 10 days and the agent was not accepting any more offers. Two of the homes were bid well over the asking price.

In Houston, TX there seems to be a flood of investors right now. It seems like I get a new lead ever week from an investor who needs finding a home. So far, I have put around 20 contracts together since the first of the year and none of them have went to closing. I can't do it anymore!

My best advice to investors in the Houston area is to get your Real Estate license and work for a 100% commission company with low fees, like Realty Associate or Champions Real Estate. Most Realtors are going to become uninterested after they put a few contracts together that do not go anywhere; especially on $40,000 properties with 2% commission splits. I would drive myself out of business if I kept working with investors in the Houston area.

If you are a new agent who hasn't worked with many investors, don't get too excited when they contact you asking for help. My experience might be different in other parts of the country, but in Houston there are just too many investors to make any money helping them. They just consume valuable time. 

What has your experience with investors been like?

Posted by

Andrew Fortune

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Topic:
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Location:
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Tags:
houston
tx real estate
investors
wasting time
offers
not closing
closing
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foreclosures
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Ambassador
981,122
Kristin Hamilton
Keller Williams Realty - Redlands, CA
(909) 557-6966, CDPE, SFR, CHS-Redlands/Loma Linda

I have had a few but they expect a lot of work and then the offer is not accepted as they low-ball the offers and it is always overbid by others. Even went to some auctions and they were overbid or they didn't have their check! Sometimes you have to let your buyers go. Not very often as many are extremely serious and realize a fair price is the ticket.

Jul 19, 2011 09:37 AM #1
Rainmaker
158,792
Mercedes E. Santana, Commercial Real Estate Broker- NYC Investment Property Sales
Santana Property Group - New York, NY
NYC Multifamily Properties

Here in NYC there are plenty of low-ball investors that continue to bottom fish but come up empty. For every real investor, there are at least 5 or more that are not realistic.  As an example, I have a multifamily property priced at $6,000,00 and just yesterday, I had an investor contact me offering $3,000,000? Ridiculous.

You are right to weed out the time wasters!

Jul 19, 2011 09:54 AM #2
Rainmaker
756,146
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor Based in Jax Beach, FL

Andrew - an investor is just like any other buyer: we need to know how motivated they are. If they are expecting to get deals in great areas for 50 cents on the dollar, I can show them the DEAL or the GREAT AREA, but we are still not seeing anything sell for 50 cents on the dollar. Most of our local REO inventory is priced to generate multiple offers, and will sell for 100%+ of list price.

Jul 19, 2011 09:59 AM #3
Rainmaker
322,088
Don MacLean
Simolari & MacLean REMAX EXECUTIVE REALTY - Franklin, MA
Realtor - Homes For Sale - Franklin MA

Andrew, you have nothing else to do, no other areas to concentrate your energy on LOL

Time wasted is time lost.......................like a garden they all need to be weeded at times

Enjoy the day

Jul 19, 2011 10:01 AM #4
Rainer
14,133
Andrew Fortune
Cherry Creek properties - Colorado Springs, CO
Local. Trusted. No Pressure.

Mercedes, that is the worst lowball offer I have ever heard of. That's crazy!

 

Don, I like with your statement, "Enjoy the day". I felt so much better now that I don't have any investors to waste my time. I really enjoy being an agent and I don't want to lose the regular excitement of the business by being weighed down. Thanks. 

Jul 19, 2011 10:05 AM #5
Rainer
86,368
Alison Shuman
Appraisal IQ LLC | (512) 585-4758 - Austin, TX

Hi Andrew, I had to "release" an investor last year. He expected 20%++ return in 3 to 4 months, wanted me to take a discounted commission to find them, a discounted commission to sell them, and act as the General Contractor for FREE to save him (earn him) more $$$$ on the renovations.

I made a series of spreadsheets that showed the work involved for properties of different size and conditions, the likely selling prices in certain higher-priced market areas, and showed he'd be paying me minimum wage, if that.

And - the whole GC for FREE (or at all) was way out of line. 

Once he KNEW the numbers and still thought I should be thrilled to have him as a client, it was clear to me he was greedy, not just lacking knowledge, so I cut him loose.

Jul 19, 2011 10:29 AM #6
Rainer
145,246
Sarasota & Manatee Counties FL
SaraMana Properties - QuickFreeMLS.com - Bradenton, FL
QuickFreeMLS.com - Listings In Paradise

So you pawned the guy off on another agent! Shame on you! ;-)

Jul 19, 2011 10:40 AM #7
Rainer
19,191
Neal Sanford
Realty Kings Properties - Houston, TX

Don't send them to another agent send them to Detroit where someone might like their offer.

Jul 27, 2011 01:31 PM #8
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Rainer
14,133

Andrew Fortune

Local. Trusted. No Pressure.
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