Agent Allies
Happy Monday!
Here is an Idea, an Action, and a Question to consider this week.
Idea
In a down market, creativity, trust, and collaboration are paramount, especially in real estate. To make deals happen, you need Agent Allies––fellow agents who you trust and count on. Without Agent Allies, the likelihood of deals (particularly difficult deals) going through is significantly reduced.
In my first subject-to deal, the transaction was tricky. I was representing the seller. We were under contract with an investor who was keen on the property. Initially, the investor underwrote the deal at a 7% interest rate. However, just a week before closing, the interest rate soared to 9.5%, jeopardizing the entire transaction.
But here's where the power of relationships really shined. The agent representing the buyer was not just another professional in the industry––we had formed a bond over time, becoming more than just business acquaintances. This mutual trust between us provided a foundation that allowed us to think outside the box.
Instead of letting the deal collapse, we orchestrated a subject-to sale. By doing so, the buyers took over the payments of my seller's existing mortgage, which was set at a favorable 5.5% interest rate (interest only payments). This rate was even better than what the buyer had initially expected!
The results? A perfect win-win-win scenario. My seller successfully offloaded his property without any financial loss. The buyer benefited from a better interest rate than initially anticipated. And both agents – myself and the buyer rep – celebrated a successfully closed deal against the odds.
Reflecting on this experience, I realize that if it were any other agent – someone with whom I hadn't cultivated a relationship – the outcome might have been quite different. It's a testament to the importance of fostering genuine connections within our industry, especially when navigating the turbulent waters of a down market.
Action
Pick three agents to take out to lunch over the next month. Intentionally grow your Agent Ally Network.
Question
How many fellow agents would you categorize as your “Agent Allies?”
See you next week,
Matt “Roar” Gardner
Real estate investor-agent, Author of Supersonic Real Estate: Light Your Afterburner to Accelerate Your Investor-Agent Career (Coming Soon!), and keynote speaker.
