Frequently Asked Questions - Investors Picking An Agent

The first problem you will encounter is that the majority of listing agents have their hair on fire and don't have time to hold someone's hand. The second problem is that listing agents will often "steer" you to their listings to double end their commissions. More importantly, even experienced investors have found us extremely informative in deciding which neighborhoods and types of investments to choose from.

Believe it or not, there are different skill levels and different skill sets among agents. Most agents in Las Vegas for example have no clue what properties rent for or how much it costs to make basic repairs. Do you really have time to fly to Vegas to spend time with an agent who has no property management experience or no reputation for handling investors?

Ask. You would be amazed at the number of agents who cannot supply a list of customers. If an agent cannot supply you with more than a dozen contacts, there is something wrong.

Many agents will make a buyer sign an agreement that forces the buyer to use them for a set period of time. We don't recommend that you sign a buyer's agreement and our philosophy is, "if you don't like us, peace be with you." The relationship between an agent and an investor lasts at least several years. If we don't get off on the right foot, it's best everyone parts company.

Buyer agents are compensated by the seller. In most cases it's the bank that owns the foreclosure.

No. If you don't buy anything, we don't make any money.

Initial Transaction	Commission The seller (aka bank) usually pays us about 3% of the purchase price. You are not paying our commissions. Minimum You pay the difference for any commission that falls below $2000. Generally, properties under $65k. $350 Transaction Fee - This covers the cost of running a licensed brokerage and property management company. This also includes document storage and the transaction related activities.
HUD or Vendee Properties	$300 These are a pain because we are wrestling with multiple bureaucracies. $100 If you want us to manage your utilities.
Closing Costs These are not our charges but you should be aware of these.	$500 +/- $100 Title Fees $400 +/- $200 Misc Fees $800 +/- $200 Prorated Taxes