Dear Ohio Licensed Real Estate Broker or Agent,
Here is how we can help you to get more sales now as well as increase your client satisfaction:
- Expiring/ expired listings- If you have a hard to sell listing that just isn’t working out for a sale at the price the seller wants or needs, it may be time to leasing out the property as an opportunity for the seller.
- Reluctant buyer- Do you have a house sale contingency? Have the buyer lease out his property so she can move forward with the purchase at today’s great price. This may be her best option as she can later sell her property at a much higher price when the market returns. If the dollar collapses or we see high inflation, prices could end up increasing very quickly as people move their capital to real estate. Look at the European financial crisis.
- Attract new investors- With the low prices in North Eastern Ohio there has never been a better time to invest. Many people both local and out of town are transferring their portfolio in the increasingly volatile stock market to real estate which has “visceral” value. Many more probably would if they were referred to a competent property manager they trusted to make there property investment more like the passive investments they know. We can provide you with marketing that you can send to your current sphere to introduce the idea of purchasing more properties and rolling their retirement funds into a self directed account that allows for investment in real estate.
- Sell more to current investors- If your investors have jobs, they will quickly get tapped out on how many rental properties they can manage. They may even end up becoming burn’t out landlords. Good management could help freshen up your investors to the idea of acquiring more properties and of course they won’t be too busy managing their current properties to go hunting for more with you.
- Tenant purchase referral fees- We give referrals of 25% of the first fee we collect when we lease out a property or otherwise collect our first income on a property. This is of course just a token of appreciation. However we include a 6% commission in our management contract if a lease converts into a sale. We offer a 50% referral on that. We can work with you to try and refer back your owner client to sell their property with you, when that time comes due as well.
- Distressed investment properties- Do you have a lead on any larger distressed investment properties. We are developing a niche of helping reviving distressed investment properties in two common scenarios:
- Apartment building short sales- We have been doing short sales for more than 5 years and have completed 60 plus short sales. A typical example would be one that we just came upon. We had an owner of a 12 unit complex approach for help managing his properties. The units are in disrepair. The tenants have not been screened well. He has been to busy with his job to meet potential tenants and lease the property. The property now has such a negative cash flow that he is one payment behind and the property is worth about $100,000 under his mortgage amount. This is an ideal short sale for us. We can quickly fill the property and bring up the maintenance using money from rents collected. The bank is pretty much agreeing to take whatever they can get and will delay foreclosure. Once we get the building fully occupied we can market this to out of town owners as a well managed building with full occupancy and great income. The fact that management is in place will allow us to sell it for more. Thus the bank wins, the seller wins and we get a commission at close from which we will pay your broker a referral fee of 30%. These could be some very large commissions. We are specifically looking for larger building worth $250,000 to $1,500,000 to help out in this way.
- Receivership- We just came across a mid size apartment building that a receiver auctioned off. The building sold for about 10% of what it would have sold for if excellent management was in place and it was fully occupied. It was in good condition only needing a little bit of polishing up. 2 months of income on this building will cover the sales price. Unfortunately this is very common in receivership with large apartment buildings. We have the resources to turn around residential investments in these situations so that they can be liquidated for the most amount of money possible. Out of town owners will pay a premium for well managed buildings even when local buyers are reluctant. Again we offer 30% referral back to your broker for sales on apartment buildings referred to us.
For a real estate broker, property management is fraught with liability and low profit margins. For most real estate brokerages it simply doesn’t make sense, and many brokers have E & O policies that exclude property management activities.
However property management is an increasingly important piece of the puzzle for North Eastern Ohio real estate agents. Because of this it often makes sense for real estate agents to work with property management specialists. We’ve found agents want to be reassured that we won’t attempt to steal their client. We are willing to sign a non-compete agreement on a case by case basis. We do understand we can all make more money and help more people, by working together.
In general this is how we pay referrals. We will pay 25% of a tenant placement fee to the agent who refereed us the landlord. If we sell a house to the tenant we will pay 50% of the commission if there is no co-broke and 25% if there is a co-broke involved.
Are you interested? Want to hear more? Please fill out the form below or feel free to call Realty Trust Services, broker, Joe Solkiewicz at 440-367-8700.