POCKET LISTINGS BRAD LARSEN Broker & Owner of RentWerx MBA, RMP, MPM, CRMCC, TRLS, TRPM, GRI, CRS, ABR WHO IS THIS GUY? Owner & Broker of RentWerx Serving San Antonio & Austin Manage 900 +/- Single Family Homes Host of the Property Management Mastermind Podcast Sold / Supervised over 1,000 Real Estate Sale Transactions Why Am I Qualified to Discuss This? Licensed Texas Real Estate Broker Since 2003 Full Time Real Estate Salesperson for 10+ Years Manage 15+ Licensed Realtors Built and Executed Our Pocket Listing Service What Is a “POCKET LISTING”? 1) Home in Our Management Inventory 2) Owner (Landlord) Wants to Sell Home Immediately 3) There is a Tenant Still In Place 4) Owner Turned Seller Wants to Sell NOW Is a Pocket Listing Legal? YES – But, Check YOUR Local MLS Rules & Regulations Fully Disclose to Seller You WILL NOT Place Home in MLS Provide the Seller a Solid Comparative Market Analysis Seller Needs to Sign POCKET LISTING Forms Disclose – Disclose - Disclose Want to Check Ours Out? https://rentwerx.com/investor-pocket-listing-program/ RentWerx.com – Under “INVESTOR” Tab We Partner With Investimate We Have Used the BiggerPockets “RENTAL PROPERTY” Tool Benefits to the Seller Minimizes Vacancy and Holding Costs Allows for Reduced Commissions (Reducing Asking Price) Ability to Sell NOW – Versus Waiting for a Vacancy With No Vacancy There is No Make Ready Benefits to the Buyer (Investor) Entire Financial Situation Completely Apparent Current Tenant and Management Company In Place Reduced Commissions and Reduced Price Typically No Bidding War As in a Hot Market Benefits to the Property Manager Can Give Client What They Want NOW Can Generate a Sales Commission (Intermediary?) Does NOT Disturb or Upset Tenant Keeps the Home In the Inventory Benefits to the Property Manager Creates Another Marketing Avenue for New Investors Property Manager Can Control Next Investor Client Property Manager Eliminates Bidding War Nightmares Makes PM a More Attractive Business Partner to Investors What Steps Do You Take? Once a Seller Identifies The Need to Sell NOW: Offer Seller a Comparative Market Analysis Do YOU Want to Buy it? If Not – Explain Program Present Them With Paperwork Paperwork One Page “Investor Pocket Listing Program” Goes Thru Questions & Answers Explains the Reduced Commissions In Writing Get Seller’s Approval for an Asking Price One Page Listing Form What Are the Reduced Commissions? “Common and Customary” Real Estate Commission = 6% “Common and Customary” Buyer’s Agent Commission = 3% Reducing Commissions = Reducing Asking Price Reduced Asking Price = FAST SALE! What Do The Numbers Look Like? $200,000 Home $200,000 Home Total Possible Savings? 6% Commission = $12,000 $12,000 +/- MISC (3% Commission = $6,000) $6,000 Commissions ---POSSIBLE SAVINGS--- Average Make Ready: $3,000 Reduced Asking Price Holding Costs: $3,000 No Repairs: $2,000 $15,000+ An Asking Price To A Buyer $200,000 Home Now with $15,000 in = $185,000 SAVINGS Tackle the Expected Sellers Want Max Dollar (We All Do!) Show Best Case CMA Detail and Explain Possible Expenses of a Roll Over Convince Them This IS the Fastest and Best Route It’s All in the Packaging Create a BiggerPockets “Rental Property” Report Add in a Rental CMA and any Prior Sales CMA Add in Current Lease Agreement & Tenant Ledger Include Property Tax & Maintenance Records What Does It Look Like? Inspection Tip Owners Will Blame the PM For Not Catching Mechanical Issues PM’s Only Conduct Visual Inspections Encourage Annual Mechanical Inspections Make Owners DECLINE an Annual Mechanical Inspection Realtor Marketing and Inspection MIC DROP FINAL MESSAGE www.PropertyManagementMastermind.com SUBSCRIBE TO OUR PODCAST SHOW __________________ Leave us a 5 Star Review Inside of Itunes.