Investors vs Realtors answers on BP

General Real Estate Investing
12yFollow

Investors vs Realtors answers on BP

Steven Stokes
Specialist · San Francisco, CA · Member since 2013 · 227 posts · 158 votes

So I'm new here on BP (so I could be totally wrong about this) but I've been reading a lot of threads from different people asking questions and I have noticed that there is a difference between how "investors" answer questions and how "realtors or agents" answer questions.

The Realtor answers tend to be straight down the line conventional and it's black and white and that's the way it is.

The Investor answers tend to be somewhat creative, a little different, a lot of gray.

I've been investing for years and I've dealt with a lot a agents in all shapes and sizes and skill levels.

Knowing your agent and your agents personality is just as important as knowing the deal you're working on with them.

I've had agents who made a dead deal a home run! And I've had agents who made a great deal turn into a nightmare.

But all in all, I think agents and Realtors tend to be more conservative because they know that there are a lot of deadbeats and people who couldn't close a door, let alone a 100k property.

I don't see a lot of bad advice being given but there is a range of advice being given.

The same is true in the real world with Sellers, Buyers and Agents. What one person would accept, another would throw in the trash and never call you again.

It's just something I noticed and wanted to comment on. If you agree or disagree let me know I'd be interested to hear what other people think :)

0Reply
2 views

Most Popular Reply

Ed Wood
Real Estate Broker · Orange, CA · Member since 2008 · 380 posts · 87 votes
12y

"The Realtor answers tend to be straight down the line conventional and it's black and white and that's the way it is."

- think this can be attributed to liability risk, being accountable for what they say, do and recommend. Bound by agency laws and over-site from NAR, CAR and local RE board, and of course the state BRE, continuing education on laws, regulations and legal forms?

"The Investor answers tend to be somewhat creative, a little different, a lot of gray."

- No over-site, no liability, no potential consequences for their actions?

2Reply
See this reply in the discussion

4 Replies

Jump to latestLatest
  • Ed Wood
    Real Estate Broker · Orange, CA · Member since 2008 · 380 posts · 87 votes
    12y

    "The Realtor answers tend to be straight down the line conventional and it's black and white and that's the way it is."

    - think this can be attributed to liability risk, being accountable for what they say, do and recommend. Bound by agency laws and over-site from NAR, CAR and local RE board, and of course the state BRE, continuing education on laws, regulations and legal forms?

    "The Investor answers tend to be somewhat creative, a little different, a lot of gray."

    - No over-site, no liability, no potential consequences for their actions?

    2Reply
  • Steven Stokes
    OP
    Specialist · San Francisco, CA · Member since 2013 · 227 posts · 158 votes
    12y

    Hahaha I love it! All good points!

    So since you've been in the market for some years, what is your opinion on buying RE using creative financing or lease/options?

    There are three things I look at when going into a transaction, and it doesn't matter if it's a commercial property, residential or a business, I look at what is my potential gain, what is my potential loss, what level of risk am I taking in this deal?

    IMO just because a deal is outside of the box doesn't mean it's a bad deal and I sometimes feel like, for some agents that I've worked with, if it doesn't fit into a standard, cookie cutter, every single day agreement -- it's wrong.

    I believe if everyone is transparent, if everyone knows the risk and there is a base level of protection is given in a deal-- then is a deal is a deal. Even if its not conventional.

    What do you think?

    0Reply
  • Ed Wood
    Real Estate Broker · Orange, CA · Member since 2008 · 380 posts · 87 votes
    12y

    ha ha thank you.

    I feel my job as a broker is to let my clients and customers know the upside and downside of a property or their decisions and it's for them to decide and I'll follow through with their request. If they ask my opinion I tell them and let them know why I came to that opinion.

    I think experience has a lot to do with the agents comfort level in going outside the box too. Outside the box can get a agent and client in a lot of trouble if not done correctly too. There's times I need to contact an attorney on what we're thinking of doing. If you get a agent that is over confident yes, yes, yes agent with a low level of experience and not a lot of broker support deposits can be at risk, or worse unknowingly commiting fraud.

    1Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    12y

    There are brokers and agents on here that are investors too.............. : )

    From a brokerage standpoint as a principal broker I want the highest return of my time just like an investor wants the highest return.

    When calculating the odds of closing a straightforward deal has much more chances to get across the finish line. When an investor starts to get CREATIVE which usually means little to no money down and all kinds of off the wall techniques then the odds of closing go way down.

    For the investor that hits the 1 in 100 miracle home run on a creative deal it is worth it to them but for the broker or agent it's usually just a waste of time.

    I wouldn't say not having an everyday single agreement is wrong but I would say it greatly reduces your chances of an offer being accepted by a seller. Let me put this another way.

    You get 20 buyers saying the have 500k to 1 million to put down and they want commercial property. You have another group wanting to try all of this wacky stuff because they do not have any money. Will they have success if they go at these techniques long enough? Possibly

    As a broker though I would put my time on the credible buyers that have cash to play. My odds are much greater helping them achieve their goals. It's just sound business decisions. If a broker or agent is desperate and has no clients I suppose they would try maybe anything no matter how far fetched it is. If you are in demand for your knowledge and connections to properties then you do not have time for those type of buyers.

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free