I've got a Bone to Pick with you People ..........
Always loved that Sienfeld Episode.
I've been in Real Estate as a Realtor and as an Investor for over 20 years. I've thought about writing this post for many years. So some of what I am going to say I know may not be received well, but its the Gospel Truth for Real Estate. To keep it simple I will bullet point my top things that Realtors and Investors need to know from the other side.
Realtors (Investors need to Understand)
. Realtors work for the Broker NOT the Buyer or Seller. Their job is to ensure that the paperwork and inspections etc are completed in accordance to Federal, State, County, Realtor Board and Broker laws, regulations and rules .
. A Real Estate Agents job is to SELL real estate PERIOD. DOT. END. OF. STORY. Brokers compete to hire the best Realtors who are closers. A Broker does not care about any transaction except that the Agent follows the law and the rules. EVERYTHING in in real estate is geared to rewarding Agents who can sell YOU on the idea of buying or selling a property.
. The Buyer or Seller makes ALL of the decisions on purchasing or selling a property. The Agent has narrow input other than providing factual information. Yes some Agents will give their advise, but unless they have 25 transactions under their belt, take it with a grain of salt.
. The best agents sell a minimum of 2 to 3 transactions a month. My state has over 3000 registered active Agents and ONLY around 200 to 400 transactions a month. I keep a database of and run SQL queries that prove this.
. Anyone from a housewife with no work experience to a former Navy enlisted sailor can become a realtor in 8 weeks and THEN help a Buyer or Seller make decisions on the most expensive asset most people will ever own. ( Think about that for an hour or two) The real purpose of Real Estate School is to familiarize a prospective Agent with the Laws that the BROKER must follow and keep the BROKER out of trouble.
. Realtors are the highest turnover as a profession in the United States. 80 percent will quit within 8 months.
. Realtors who have Investors don't know their numbers or have financing already in place are wasting their time. Any Investor who approaches you with wanting to add you to their "TEAM" is a waste of time and effort. Always check an investor for an existing portfolio and financing in place, whether its a cash buyer check their bank statements, equity accounts, 401K etc. TRUST but VERIFY.
. If you show an Investor 4 properties that meet 90 percent of their requirements and they DO NOT make an offer on one of them the FIRE the Investor. Time is the most precious thing you have, If you have done your job properly then the only properties that you will bring them are ones that they should be willing to make an offer on.
. Learn the backend of the MRIS system. It will become the best tool for finding investment properties.
INVESTORS (Realtors need to Understand)
. Check your ego, consultants and trades are people too. If you think being loud, obnoxious and thumping your check will all ways get you your way think again. Reputations matter. In the internet ages its easy to get black listed as an Investor.
. Treat any consultants (mort brokers, realtors, inspectors) like employees.
You set expectations. then you manage expectations. If they underperform then take appropriate action up to firing them. As a realtor, the client I ALLWAYS treated like Gold was the repeat buyers. I loved investors (the ones who were true investors)
. Know your numbers and geographic location and make sure they match. If you don't know your numbers then you are not an investor.
. Be willing to make offers on properties that meet 80 to 90 percent of your criteria. Its amazing when you get turned down, then a month later you get a call back.
. Show your realtor your financials. I used to get at least 4 to 5 calls a weeks from "INVESTORS". Most of them had recently paid 300 to 100 dollars to attend a "HOW to BECOME A HOME INVESTOR" or had read forums like BiggerPockets and wanted me to become part of their "TEAM". I learned never to call them back. The ones I did call back were referrals from investors who I already worked with.
. Partner up with a seasoned investor for your first 1 to 3 transactions. The information transfer will make you a real investor in no time.
. Be honest with your trades. If you can't get this concept, remember there is always Wallstreet.
NEW REALTORS and NEW INVESTORS.
. Sit down with a Broker who has worked with Investors and make a realistic plan. You both will benefit.
I'm hoping that New Investor and Realtors can find some things to make their careers easier.
