All Forum Posts by: Adam Macias

 Jay , and so do top performing contractors .  

@Adam Macias, why do real estate agents fail? You know the answer well but are looking for a healthy discussion. To play into this matter, the answer is due to the free market and the principle of supply and demand (Carlos' point). When hundreds of thousands of agents are licensed in a market, but inventory levels are at all-time lows, individuals hoping for the quick commission check aren't going to do too well. Hence, the failure rate has been, and will likely always be, ~85%. 

Furthermore, for most agents, a higher volume of leads doesn't necessarily help them convert more closings. This is simply because most agents have no idea how to move a prospect through the sales funnel. More leads aren't going to solve their problem of lack of sales skills. As Jay noted, you need sales skills to survive in this industry. 

I advise newer and existing agents to hire a sales coach or mentor before spending money on leads, whether it's through Zillow, BP, or some other real estate-related platform. Sorry, BP. I know this goes against your model. 

 Lol

Any stats about real estate agents need to be taken with a grain of salt.  In most states, it seems, and I can certainly say for Ohio, the barrier of entry to become an agent is extremely low. 

I have met my fair share of agents that only got their license thinking it would help them do their own deals.  I know some that got their license only to try to help justify to the IRS that they are a QREP.  I know stay at home parents that get it, just in case a friend or family member wants to buy or sell.  

When you have a low barrier of entry, you will have a lot of hobbyists, who will never do any of the work to be successful.  This is not a critique of anyone that got their license and lets it sit idle or near idle.  Being a full time agent is a grind.  Nights, weekends, irrational/emotional clients (this last one goes just as much of owner-occupants as it does for investors).  

@Adam Macias

Let’s turn the tables on this, what percentage of so called real estate investors bought a property in 2023

There are 2.5 million accounts on BP. I would bet that more than 75% did not buy a property in 2023

As an investor, why would I want to work with an agent that's closed zero to one property over the past year?  That tells me that the agent in question:

1.  Is not an investor themselves, as they didn't close any deals for themselves

2.  Probably has limited insight or experience with investment properties

3.  Probably has another source of income resulting in them not closing houses and not being immersed in real estate on a day to day basis

That would be what BP advertises though  in bold. We have the captain of the sinking ship syndication from BP with that calculator for everyone to use and then come ask on here why they cannot find cash flow or 1%.

BP is home of the worst investor friendly agents. The few that are excellent on here probably are on that opposite side-- do 80% of the deals  yet I'd argue it's like 5% of them. Otherwise the one's not on here, they mainly work with families trying to buy a new primary, or possibly a second home or third. Maybe an investor, but likely an investor group.

I'd be interested to see how many REI bought properties in 2023. Then how many bought 3 or more, and scale up. I'm thinking it's higher than 75% that did not buy, a lot higher.

Agent 'glut' means part-timers are now the majority, leading to 'widespread incompetence and pressure to maintain high commission rates,' according to the Consumer Federation of America

inman only 50 percent of agents sold only 1 house - Search (bing.com)

I hit Executive Club status last year so far 8 years in a row!   It is challenging out there especially to new agents with no base or previous sales.  

Veteran agents like myself know how to adjust to shifting markets!

Why are they renting? Were they not agents during the 2nd best time to buy property in our lifetimes? Didn’t I hear somewhere there are more agents than homes sold? I think the “average” realtor sells 1 home or less per year.

Ps. They should try house hacking with other realtors. 

Pps. Who answers these surveys?