Leveraging Agents When Wholesaling Lease...

Hey Moguls, Joe McCall here…

Let’s quickly run things back...

We’ve talked about wholesaling in previous lessons. We’ve defined lease options. Then we took it a step further and confused you even more (naaah) by discussing on a recent training call one of my favorite real estate investment strategies – wholesaling lease options.

In short, you’ve acquired the knowledge to now fully grasp the thoughts I’m about to share with you. We’ve come full circle, and it’s time to build upon what you’ve already learned. Let’s get into this thing known as leveraging agents when wholesaling lease options.

I know, I know. It’s a mouthful and a brainful, if you will, but I get questions all the time about working with Realtors when it comes to flipping lease options and how to best leverage those relationships.

So, let’s get into it, shall we?

First Thing’s First

One of the main things I teach in this business is that you should either get your license or work with a Realtor who is licensed for marketing and selling your properties. That’s kind of a prerequisite to getting started, right?

So what kind of responsibilities and assignments are you going to give that agent to do for you, and why even work with an agent?

Bottom line is there are issues with brokering without a license, as we’ve often talked about. When you’re finding a property for another person, you become a principle in that transaction with equitable interest.

My suggestion? Play it safe every time.

If you’re working lease options, and you’re flipping lease options, either get your license or hire a Realtor to market and sell the homes for you.

You with me?

So what part should your Realtor play? How much should the Realtor actually do?

It’s simple. Everything.

business Make a to-do list of everything that needs to be done…

At some point, you’re going to ask yourself, “How the heck can I get someone else to do all of this for me?”

Don’t panic! Having your agent do all the behind-the-scenes work is the name of the game, so run with it. Your agent will become your master marketer, posting Craigslist ads, displaying bandit signs, taking calls, managing your website and collecting application deposits…just to mention a few responsibilities.

Pay your agent one month’s rent or half of a month’s rent, whatever you feel is most appropriate.

(Heads up regular wholesalers, because these are great tips for you as well.)

Check Your Check List

Be sure you checklist has 3 must-have columns:

Your responsibilities
Your virtual assistant’s responsibilities
Your Realtor’s responsibilities

Sometimes there’s a fine line between what you need to do and what your agent should be doing.

Should you provide your Realtor with signs? Of course.

Should your Realtor prepare and distribute them? Absolutely.

Clearly define what each of your roles is, and you’ll stay on track.

When to give up the Digits

Let’s talk about virtual numbers. This one is really about personal preference...

In my experience, using a virtual number that sends callers right to an informative voicemail is best. It’s a great way to answer common questions and drive buyers and sellers to your website without having to constantly intercept live calls.

But it’s not for everyone.

Some people prefer to eliminate the middleman and the incessant game of phone tag by using their personal number. So if your agent rocks at follow up, then the virtual number might be an option for future reference.

Prescreening in Moderation

If your agent takes calls from tenant buyers, they should pre-qualify those buyers only to confirm they are actual rent-to-own buyers.

It’s important to differentiate between a regular rental property and a house that someone intends to eventually buy.

With that said, try not to pre-screen or pre-qualify callers too much. Massage the screening process when it’s necessary but always remember that your ultimate goal is to get them in the house, to see the house, period.

Keep it Real

If you’re going to work with an agent – and you should – be up front. Tell your Realtor that you have properties under lease options and that you’re either going to find tenant buyers, keep those properties for yourself, or wholesale them.

It’s your call. After all, you’re going to rely on that agent for all the behind-the-scenes responsibilities, right? The process will flow much smoother if you’re sincere and forthright.

Remember, your Realtor represents you NOT the seller.

Here’s my final tip: If the property is listed with a Realtor already, it’s a done deal. Pass!