Philly first time investor - New Western

[Othman Zizi]

Hi,

I’m looking to invest for the first time in the US (Philly) as a real estate investor. Got a lot of experience abroad but none in the US.

I got contacted by an agent at New Western, but

1. Seems that they represent the seller

2. reading the reviews seems that they are not always very honest.

Should I get a buyers agent in that case? What is the typical cost and who pays the fees?

Thanks

[Stuart Udis]

@Othman Zizi Following the NAR settlement the way brokerage fees are earned and who is responsible varies transaction to transaction. As someone who is not familiar with the Philadelphia market I would strongly advise against relying on any wholesalers opinions or representations, New Western or otherwise.

I used to get irate when I would see or hear some of the things spewed by wholesalers but over the years my temper has calmed as I’ve come to realize the inaccuracies they spread are in most instances not malicious, they merely have such limited knowledge that they don’t know any better. It explains why they are usually in the lowest barrier space within the industry (until recently not even a license was required & many still operate illegally).

As a Philadelphia resident and active investor in the city I fully endorse investing in Philadelphia but only if you’re receiving sound advice. Philadelphia can be a very profitable market but it’s also a city that can eat investors alive who rely on bad advice. Network with active investors or seek representation from service professionals where fees aren’t tied to the completion  of transactions. They will be the ones who give unbiased opinions and steer you in the right direction.

I’m contacted multiple times a week by individuals who buy lousy real estate in Philly and I hear “ but the agent told me” or “the wholesaler promised me” it was a legal use…the rents would increase…..I could rent this section 8 and achieve xyz rent etc. etc.   Again rarely is this malicious on the part of those sharing this advice, they merely don’t know any better. Nothing I can do either after the fact, perhaps mitigate the damage that’s done but never reverse course. That’s why I politely say sorry can’t help…not worthy most individuals time who could’ve helped these investors in the first place.