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Reasons that an experienced Realtor is not interested in taking on a client such as you suggest you want to operate:
1: They can spend a lot of time writing and presenting offers, that they know will be rejected. Time they should be spending on finding and helping clients that will be making offers that will be accepted. They are going to be spending their time working with clients that will earn them money, not one that is going to get 99% or more rejected. Their time is too valuable to waste it working with a client like you.
2: Making that type of ridiculous offers, will get them a bad reputation with other Realtors, who will not want to see them bring in crazy (called stupid offers in the business) offers, and have to waste their time having to present them to their clients as required by law. Other Realtors will stop working with them, which can badly effect their business relations in the area.
With those two factors effecting their decision to work with you, experienced and better quality Realtors will have nothing to do with you.
From 1972 till I finally retired, I was an Investment Broker, working exclusively with clients working more like a stock broker buying, selling, and exchanging for long term clients. I had an agreement in writing with all of them, that when someone brought in such stupid offers as you are suggesting, after seeing the basic information on the offer, I would just open up my big stamp pad, and using my 5"X7" stamp with a heavy border around the edge, and one word REJECTED to stamp it in bright red ink, and hand it back right then. Agents by law, have to present the offer to the sellers or their appointed representative. My attorney had drawn up the authorization for me to act on unacceptable offers such as you propose as their authorized representative, and not waste the clients time to have to review and reject it. I always pulled my copy of the contract and stamped and dated the stamp to give to the sellers. Every time I did this, they were pleased I had saved them the time to have to read it and reject it themselves.
Is that more common in commercial real estate?
I can see how it would be since so many are exclusively in business to make money. How often are the interested parties looking to physically utilize the space (ie, I need it for my storefront, warehouse, etc) and how many are purchasing exclusively for investment purposes?
It was suggested you should get your own license, and then you could make your own offers and get a commission.
BAD IDEA. When you are acting as both the agent and the buyer taking a commission on your own purchase, you are opening up a can of worms you really don't want to get involved in.
As taught in University Real Estate Classes, we were advised if we were going to buy a property in our own name, to never act as an agent, and act only as a principal. Acting as both an agent and a principal, you take on some very strong possibilities of getting sued, and acting as both you are sued both as the buyer and the agent. You have the courts, the Association Of Realtors if you are a Realtor, and the State Bureau that controls real estate licenses looking over your shoulder, and both can cause you serious problems. The worst are to Association of Realtors, and the real big one the State Bureau controlling real estate licenses. These two can make decisions you have done something wrong in a matter of days, not a year or more as when it goes to court. And it does not cost the complainant even 1 Cent to get them taking on the complaint and awarding money.
I don't understand, why would you get sued for acting as your own agent? Especially if you disclose it?
I don't understand, why would you get sued for acting as your own agent? Especially if you disclose it?
Every state has different laws. In some states, realtors have to do quite a bit to disclose that they're buying/selling for themselves. You also can't just go become a realtor because you took a class. In my state, you have to pass the state exam, be under a broker, etc.....I can't see any broker signing up someone to do any of this. And you can't just become a broker. You have to be a licensed real estate agent for a specific period of time, take another class, take another test, and some other things. It's not easy, fast, or cheap.
I don't understand, why would you get sued for acting as your own agent? Especially if you disclose it?
An agent is restricted by law, and custom as to what they can do and not do. If you want to be a principal and draw a commission from the seller in addition, you open up so many chances of getting sued. As the lawyers taught us in University real estate classes, just don't do it. In other words to make it simpler to understand, is when you draw some commission you are placing yourself in a position to get sued if the seller later feels you took advantage of them.
As a principal only, you are not held to the same legal standard as you are if you draw a commission. In addition if you act as both an agent and a principal, you can be brought up before the Licensing Board of the Board that is over real estate licenses, and that is no fun and can cost you money.
I have seen more than one agent over the years, that wished they had not taken a commission when acting as a principal. And if the agency you are attached to are Realtors, you have another level of control over your actions.
I don't understand, why would you get sued for acting as your own agent? Especially if you disclose it?
When you are a real estate licensee you are held to a higher standard. It is assumed you have greater knowledge than the other party putting them at a disadvantage. As such, it leaves them vulnerable to being taken advantage of.
So when an agent is the buyer and the seller is unrepresented there can be concerns of unfair advantage, and when the agent is the buyer and then attempts to represent the seller, that is just insanity and asking to be sued.
I do probono representation for my agents because I don't want them interacting with sellers if they are the buyer or the buyer if they are the seller. I'm doing that right now for my agent selling his rental. The buyer has chosen to be unrepresented and I represent my agent.
Thank you. I didn't know any of this, as our colleges offer real estate classes. My assumption was you could take the classes, pass the test and hang a shingle.
OP you might be able to get on the mailing list for an agent who will contact you when he finds a fixer upper or when a foreclosure gets listed. A few agents specialise in investors.
He won't go around writing lowball offers for you and he will have a client list that all get sent the information. That's about the best you will be able to do with an agent.
At the free seminar they told the OP all about all the Hard Money Lenders out there just waiting to throw money at him to buy and sell houses.
In my farm area, if a home worth $800,000 sells for $500,000, it will need $300,000 in repairs just to bring it up to code.
Also, the homes I've sold, I've had clients ask me not to bring them offers under a certain amount.
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