Knowing when to get a new realtor
Real Estate Broker · Pueblo, CO · Member since 2013 · 368 posts · 303 votes
Knowing when to get a new realtor
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Specialist · San Francisco, CA · Member since 2013 · 227 posts · 158 votes
12yThis may not be the view by everyone else but, if it were me, I would get rid of him immediately! Right now without delay.
One bad employee or partner can ruin a good business.
And you can not afford to have any bad apples on your team especially when you're just starting out.
For one, he is not on the same page. What you vision your team doing and being is not what he sees his role as being and doing. If he doesn't share your vision and worse TELLS you his schedule is unacceptable.
Does he work for you or do you work for him?
There are so many red flags with this person that I could write about why you should get rid of him but I won't.
Here are some rules that I follow when bringing anyone on my team:
- Find the best people you can find. They have to be really, really good (not average, not good enough, and not just filling a spot). Bringing on the best people you can find almost always makes the difference between success and failure in this business.
- Make sure they know your vision, your goals and your plan for getting there. If they do not know what you're trying to do they will be all over the map and it will cause unnecessary mistakes, delays and possible failure because not everyone was on the same page.
- Make sure they know what their roles, responsibilities and expectations are on the team. Once again, if this isn't clear people will be all over the map and the lack of focus could mean lost opportunities.
- Expect, demand, do not compromise on excellence, hard work, integrity, and loyalty.
- Be the boss - When you hire A-type people they will be used to leading and taking over but you always make sure that you give them power but let them know the final authority rest with you and you are the boss.
Building a team is easy, building a great team is really hard. But once you have a great team your business will run, operate and be 100 times more successful than getting any random person off the street.
Unfortunately, in this business there are a lot of lazy people who want rewards but do not want to work hard for it.
Sorry this was so long but it's been really important in my business. I hope it will help yours.
Good luck
23 Replies
- Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes12y
@Chris Pasternak 1) So what? He's not doing the inspection, you/your inspector are.
2) Understandable
3) This can be an issue, Depending on the nature of the text. Not every text is urgent.
4) ARV is an acronym made up by rehabbers/wholesalers, and is no indicator of real estate knowledge. I'm sure your agent is far ahead of you, in the knowledge dept. Many wannabe's have read what ARV is, quote the formulas recommended, but don't have a clue what a contract says after reading it, let alone how to fill one out.
- Real Estate Investor · WI · Member since 2013 · 125 posts · 33 votes12y
If You think You need a better agent, then You do.
For what they get paid, You deserve their undivided attention. The ARV thing is just syntax who cares. If they slip on the little things what else is happening
Try a different agent, but don't burn the bridge.
John
- Dallas, TX · Member since 2013 · 4k+ posts · 744 votes12y
Have you closed any deals with this realtor?
Joe Gore
- Involved In Real Estate · Lynchburg, VA · Member since 2013 · 246 posts · 75 votes12y
You described 99% of Realtors in your description. All of those are extremely common.
Not responding within 24 hours is bad, but you have to realize that your speed is uncommon. Most of the time it's agents chasing people around for days, so the guy might have slowed down himself.
I'm not saying he's right, I'm just saying that you need to look at different perspectives. At this point he's really doing you a favor by driving around for free showing you houses with no idea if you'll be like the 10 other guys that contacted him without ever buying anything. This message is proving him right - he's shown you properties and you still haven't pulled the trigger.
PS: You know how many clients are happy to talk to us between Dec 24th and January 2nd? Not many! A lot of agents take the entire month of december off because no one wants to do anything. They all say they're waiting until january.
- Real Estate Investor · WI · Member since 2013 · 125 posts · 33 votes12y
Originally posted by @Account Closed: At this point he's really doing you a favor by driving around for free showing you houses with no idea if you'll be like the 10 other guys that contacted him without ever buying anything. This message is proving him right - he's shown you properties and you still haven't pulled the trigger.
My agent does none of those things. However, I will thank Her for the "Favor ", next time I see Her.
John
- Specialist · San Francisco, CA · Member since 2013 · 227 posts · 158 votes12y
This may not be the view by everyone else but, if it were me, I would get rid of him immediately! Right now without delay.
One bad employee or partner can ruin a good business.
And you can not afford to have any bad apples on your team especially when you're just starting out.
For one, he is not on the same page. What you vision your team doing and being is not what he sees his role as being and doing. If he doesn't share your vision and worse TELLS you his schedule is unacceptable.
Does he work for you or do you work for him?
There are so many red flags with this person that I could write about why you should get rid of him but I won't.
Here are some rules that I follow when bringing anyone on my team:
- Find the best people you can find. They have to be really, really good (not average, not good enough, and not just filling a spot). Bringing on the best people you can find almost always makes the difference between success and failure in this business.
- Make sure they know your vision, your goals and your plan for getting there. If they do not know what you're trying to do they will be all over the map and it will cause unnecessary mistakes, delays and possible failure because not everyone was on the same page.
- Make sure they know what their roles, responsibilities and expectations are on the team. Once again, if this isn't clear people will be all over the map and the lack of focus could mean lost opportunities.
- Expect, demand, do not compromise on excellence, hard work, integrity, and loyalty.
- Be the boss - When you hire A-type people they will be used to leading and taking over but you always make sure that you give them power but let them know the final authority rest with you and you are the boss.
Building a team is easy, building a great team is really hard. But once you have a great team your business will run, operate and be 100 times more successful than getting any random person off the street.
Unfortunately, in this business there are a lot of lazy people who want rewards but do not want to work hard for it.
Sorry this was so long but it's been really important in my business. I hope it will help yours.
Good luck
- Involved In Real Estate · Biloxi, MS · Member since 2013 · 76 posts · 30 votes12y
1) Depends on what you mean by viewing. If he's just opening up houses for you to assess as an investment, rehab, etc. then it shouldn't be a big deal for him to take calls. If you're in conversation with him or asking questions and he's inattentive and telling you to hold on, then find you someone else.
2) Not unreasonable but find someone else if it bothers you. My whole office has been AWOL for about 10 days now, even the broker, lol.
3) Depends on the nature of the call. If you're telling him you want to submit an offer on a property then by all means he should be very responsive. I wouldn't think twice about finding someone else. If he's shown you five houses and you just want to see more, then his actions are reasonable.
4) I went through real estate school last year, as an investor, and I can tell you ARV was never mentioned and was not on the test. Nor was any of the other lingo you'll pick up in flip books.
Why don't you get your license? That's what I did for many of the reasons aggravating you now. Most real estate agents are only interested in preapproved owner-occupied clients. They want to find a few houses meeting your criteria, show them to you, and close the deal. They don't have time for unproven investors wanting to view a home at a moment's notice just to submit a low ball offer which probably won't get accepted. With my license I have MLS access, the master key to look at most properties and I can write all the offers I want, when I want.
Until you prove yourself as an investor you need to take it easy on your agent because he/she will become disinterested very quickly. Also, instead of asking about ARV, ask the agent "After I buy and rehab this property, how much will you be able to sell it for?" If they know there are two transactions to profit off of they may be more willing to comp a property for you. They're not going to do this often so don't request it on every home. Besides, you should already have a good idea of ARV before you ever visit a property. Use the realtor comps to confirm your ARV just before you make the offer.
- Real Estate Investor · WI · Member since 2013 · 125 posts · 33 votes12y
- Involved In Real Estate · Lynchburg, VA · Member since 2013 · 246 posts · 75 votes12y
His team criterias are good. Except the agent isn't an employee, he's an independent contractor who only makes money when you buy/sell something. The interview process goes both ways - you expect him to show you houses etc, but he expects you to actually pull the trigger and buy something.
Have you fulfilled your end of the expectations?
- Involved In Real Estate · Biloxi, MS · Member since 2013 · 76 posts · 30 votes12y
Sage advice @Steven Stokes , the problem is most people starting out are tire kickers just learning the ropes at the agents expense. I would not call the agent unprofessional without knowing the full story. Granted, an investor with the means to purchase will be incredibly successful following your advice.
- Specialist · San Francisco, CA · Member since 2013 · 227 posts · 158 votes12y
@Account Closed
It's true that an agent is not an employee. But I do consider them a partner and I meant, in the generic, anyone who I bring into my team. But it is a two way street.
I was focusing on what @Chris Pasternak should be looking for to bring into his team. And like @Account Closed said most people are tire kickers so you have to show them you have your ducks in a row before you approach these people.
I should have also shared what I try to do to win top people.
People who are top in their field like agents, attorneys, accountants are not going to just fall under you because you say, "I want to make a lot of money so follow me."
Here's what you have to show top people to win them over to your side and bring them on your team:
- A plan - It could be one page or it could be a full well-written 30 page business plan but have something that you can give them in writing outlining what you're going to do and how you plan on getting there.
- Show them the money - Give them your credit score, your financial statement and show them how you're planning on getting the money. This is usually the first thing they want to know even before they see your plan.
- Give them references to past deals and people who you have worked with in the past and deals you've closed.
Put it all together in a nice packet and that should be enough to get them to at least listen to you and you can sell your pitch from there.
But do not expect great people to fall under you with nothing to back it up. That's a sure way to lose friends, credibility and resources.
Hope this helps more.
- Involved In Real Estate · Lynchburg, VA · Member since 2013 · 246 posts · 75 votes12y
Now that is great advice. If only everyone understood this! Great job Steven.
(I'm not perfect either and I made / still make plenty of mistakes. I just feel like agents are often unappreciated. They have to put food on the table like everyone else and that doesn't happen until someone buys/sells something.)
- Chris, I'm replying to your post from the BP app, so I can't quote it and go back and forth without losing my reply thus far, but here it goes. I don't think any one of your reasons individually is reason enough to fire your realtor, but the combination of them might be. Taking calls during an appointment with you is rude. Unfortunately, people do this all the time in all lines of work, but it's rude. If he's expecting an important call that can be urgent enough to interrupt your meeting and cannot wait, then he should tell you that up front. Otherwise, that's what voicemail is for. Shutting his phone off for a certain period of time around the holidays seems fine, unless you're actively working on a deal that's going to close around/during that time. Everyone needs some down time. Not knowing the term ARV is a little surprising, but I wouldn't consider it a deal breaker. Not responding in 24 hours consistently is inexcusable as a realtor. I've had a not so good experience with a realtor that I would almost consider a friend. In fact, he's on BP and might even be reading this! Sometimes you just need to move on and try to work with someone more compatible with your style. I would recommend you start searching for another realtor. Best of luck!
- Dallas, TX · Member since 2013 · 4k+ posts · 744 votes12yMost investors will run a realtor all over town just to make low ball offers and wasting the realtor's time. A realtor should ask the investor for a bank statement before submitting any offers and that way you will know if the investor is the real or tire kicker.
Joe Gore
I'd change agents sounds like you're getting blow-off. Some agents don't know how to qualify buyers and if nothing happens they blow buyers off out of fustration it's their fault not yours. A good agent will qualify buyers before driving them around. Proof up with a good agent or work with a couple of them until you find a good one.
- 12yJ. MartinPro MemberRental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
If you have to ask the question.. that's probably when it's time to go..
Interview some new realtors, tell them exactly what you need/want, and tell them you don't want to waste either of your time if they can't achieve that. Good realtors will appreciate that you mean business, are straight-forward, and know what you want.
- Dallas, TX · Member since 2013 · 4k+ posts · 744 votes12yThat is good advice, but most investors think they are too good to show the realtor a bank statement that they have the funds to close the deal. Realtors see tire kickers everyday that want to place a low-ball offer or don't even have the funds to open escrow.
Joe Gore - Involved In Real Estate · Lynchburg, VA · Member since 2013 · 246 posts · 75 votes12y
Pretty amazing how polarized this thread is.
Truth is, you can't argue with someone who's brand new to all things real estate and genuinely believes top agents are going to be at his beck and call before ever completing a transaction.
Be honest with us. I'm curious. How many properties did he show you? Did you actually submit any legitimate offers?
- Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes12y
most realtors don't know what ARV is and many successful investors don't either.
How long are you looking at properties and how many? If your taking up hours of time, it's natural for him to talk to other people. Especially since you expect him to return your calls and texts so soon.
How pressing are the questions you are asking when you call or text? Are they urgent or can they wait or are you not being specific. One thing that his me is when people leave messages but don't tell me what they need. Then I call them back, they don't answer and we play phone tag.
I personally would want an agent who is working a couple days between Christmas and New Years but that's me.
- Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes12y
This is all about EXPECTATIONS and what business you want.
I do not mess with buyers that have a low chance of closing. If they want to try an out there technique to maybe get lucky if they look long and hard enough more power to them. For me the time spent versus the return isn't there. Even though I only do commercial real estate and also multifamily there are tire kickers buyers out there as well.
From a brokers perspective the buyer has to be ready, willing, able, and realistic to do a deal. I do not do SFR but an example would be an investor wanting a property for 50k in a nice area that throws off 1,000 in rent when all the data says all these properties are transacting with multiple offers at 75,000.
The problem many brokers/agents have is they do not have a plan to follow themselves on what type of business they want to do.
- Real Estate Investor · Member since 2013 · 866 posts · 487 votes12y
Originally posted by @Chris Pasternak:
At what point do you severe ties with a realtor who is just not living up to your standards/expectations?
My realtor has done the following (but not limited to) and he has me on the brink of relieving him of his duties:
1) talked to other clients or realtors, or even held personal phone calls during a house viewing (more than once)
2) told me that he shuts his phone off from December 24-Jan 2
3) Sometimes does not respond to calls/texts within 24 hours
4) Didn't know what ARV meant when I used the acronym and then proceeded to say he never heard it called that before...
Maybe I'm answering my own question, or maybe I'm being overly picky but usually I'm right about my gut instinct. Seeing as REI is a new field for me however, I'd like to get others opinions.
Thanks! Happy holidays!
Honestly, Chris. I think the agent needs to fire you as a client.
I know you are young and just getting started but you seem to think you have some kind of exclusive claim on their time. You don't. A good Realtor will always be working on multiple deals at the same time.
- Real Estate Agent · Milwaukee County, WI · Member since 2009 · 3k+ posts · 525 votes12y
I totally agree
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
" I do not mess with buyers that have a low chance of closing "
I look at my personal board almost daily :
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Ready
Willing
Able
Realistic
- Real Estate Broker · Pueblo, CO · Member since 2013 · 368 posts · 303 votes12y
thanks everyone for your thoughts
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