BiggerPockets

I wouldn't say Realtors are a bad thing at all. I work with one, and he's a big help in my investing.

The problem, if there really is one, is that most Realtors do retail deals. They work with Dick and Jane Homebuyer who buy a house once every 7-10 years. Dick and Jane don't understand RE or the process, so the Realtor has to lead them step-by-step through the process.

A big factor in the process is figuring out exactly what Dick and Jane want and what they can afford, then showing them their "perfect dream home."

Along comes an investor who does understand RE and does understand the process. Someone who's only going to buy if the price is right and who could care less about the house itself. If its a good deal and makes money, OK. If not ... next! Frankly, there are no "homes" involved. Just property.

Realtors only get paid when a deal goes down. My sense is that too often even a buyers agent gets wrapped up in getting a deal to happen. An investor is only going to buy if the price is right.

If you really want to help me out, give me direct access to the MLS. Let me pull listings. Let me look at solds. I can fully understand needing someone to go along when I'm going inside a property. But the MLS is a database. This aspect of the RE industry galls me to no end. You thrive on secrecy. Certainly its a lot better than when I bought my first house over 20 years ago. But, I still cannot see all the info you can, and I see no convincing reason why I should not be able to. The travel agent industry used to be like this, and you see what's happened to them. Even the travel providers, airlines, hotels, cruise lines, etc., have disimtermediated the travel agents almost out of business. Similar, though to a lesser extent (for now) for music, and, to an even lesser extent for video or cars. If RE agents don't want to go the way of travel agents, you need to figure out how to add real value. One of the ways is going to be to share you data more freely.

Ok, I'll bite.

There is quite a bit of antaganism between realtors and investors. Many times, they are in direct competition with each other. Preforeclosure investors don't want a realtor involved because another middleman just eats the profits. Further, a well advertised property will generally get a higher asking price. Whether that asking price is higher than the commisions charged is debatable.

Realtors also do not like dealing with investors because many just don't understand us or don't want to. The Realtor I worked with the last few years got looks of shock and awe when he told his collegues he went to a foreclosure auction with me. Not one other agent in the office had ever been to one and many thought it very strange of him to do so (even though, if I had bought, he would have got the listing within a month on the flip.) Also, at least personally, most realtors I run into just are not knowledgable about the field they represent. I cannot tell you how many times I've run into agents where I know their job better than they do. I had one agent actually tell me it was illegal for me to put an unrepresented offer in on the house he was representing. Ignorance of this level won't last through the current downturn though.

Also, many, many of the Realtors I've run into are not exactly, well, how to put it, honest. I watched one house go into foreclosure because a Realtor came in at the last second, disrupting an investor deal with a promise of a well above market sales price. Yep, he bought the lisiting. Amazingly enough the house, in its rough condition, didn't sell in time and the house was lost. Then there's the enternal, "We already have another offer, make a better one..." line. And amazingly enough when I decline to make said improved offer, the house is reoffered to me soon after at my price, or stays on the market because said offer didn't actually exist (or the other offer fell though, but then the listing status should have changed.)
And then there's the do anything to get a sale attitude. Offer a 4% buyer's commision on a nice house and watch the feeding frenzy begin as every represented buyer within 50 miles shows up to see the house. I understand that agents need to eat, but a system where the higher the price, the more I get paid isn't too fair to the buyers.

Anyways, this turned into a bit of a rant and that wasn't my intention. I am not anti-realtor. I've sold everyone of my houses through a realtor (eventually). A great realtor is an asset. Someone who knows what I do and is a better negotiator than I. Also, first and second time home buyers do need someone to help them through the steps and to help them make sure they aren't buying a ticking timebomb of a house. It takes a lot of time to pick up the skills needed to do this. Anyone can learn the paperwork in a month or so, but real value added takes time and experience.

I am a Realtor and have learned why so many do not like Realtors-assuming every Realtor is like the one they heard about/were told about/etc. Hello Blaine, good to see another Electric City person here.

I have worked with the same agent from the begining. She has been great for the most part, but we have had a couple issues too. I find the deals and all I ask from her is to get me in the house when I need to get in, then submit my offer. We would have a much more profitable relationship if she would give me access to the MLS and the lock boxes. This would save us both a lot of time and would possibly avoid scheduling issues. I would never go around her and go directly to another agent, what would be the benefit to me? I still pay the same whether I deal with only the listing agent or both agents.

Wow, some harsh words and generalizations for poor Realtors.

The problem is that Realtors go to school, get their license and then begin working at an office and that is it. They have very little if any good solid training.
They get access to the mls and maybe floor time and then are expected to go it alone with very little direction. Its sad really. Mostly though it is not their fault. I can't imagine any other job or profession where you are expected to perfom without any training or experience.

That being said, there are many many amazing Realtors out there. They stay on top of the market, they are constantly educating themselves by taking classes, reading books, attending seminars and they are open to all sorts of creative deals.

Are there some bad apples out there? Of course.
In fact there is one specific real estate company that no matter what state, what town I meet with any agent from this company, they all have the same sleezy way about them. It must be something in the companys business model. I won't say here who they are, but anyone can email me and I would happily say who they are.

In any event, don't be so harsh on Realtors. They are human beings that are just trying to make a living like everyone else. Instead of thinking they are lazy and dumb, think that maybe they have not been shown the way and just have not been given any direction. Doesn't always mean they are trying to scam you or take advantage of you.

I have come across so many amazing new Realtors that had the potential to be really great but they got under the wing of the wrong person.

This market will weed out the successful Realtors from the amatuers.

If you are a new Realtor and trying to figure out how you can best service your investors, my advice would be to read as much as you can about the art of negotiating. After all, the Realtors job begins with the client says no!

The problem with Realtors is that by definition, they are part of the National Association of Realtors.

I should know, I am one.

Let's see:

-No barrier to entry
-No formal training
-Less schooling necessary than hair-dressers
-Access to information that is widely becoming free and available to all
-NAR propaganda

Blaine, in my opinion, to be a successful real estate sales associate, you need to separate yourself from the crowd. Realtors are the crowd.

I am so glad I asked this question. This thread has given me so much insight into the mind of investors. I feel that the comments here (both the good and the bad) will make me a better asset to my investors. Thank you all for your comments!

I am saddened by the reputation realtors have. Frankly I wouldn't be part of the NAR if I didn't need too. They are becoming a self serving political entity. However my real estate career has not YET grown to exist without it.( and I will rant another day about the NAR) I finished the classes easily and then went looking for more info about how to negotiate.....nowhere are there any good classes for real estate agents with regard to this. I found some mentors and currently work with a broker who is the best negotiator i have ever met. Creative, within the law ....all of it. Anyway I came into this business with vision of developing the community. Many old-timers said I had to start with selling houses to families. I can't keep myself in that role. I work with investors, I find wholesale deals, i share. I advise about negotiations. I help people who are from out of town do research here so they can get the properties they want. I attend mosst city council meetings to stay on the pulse. I don't rely on the MLS. I also list quite a bit at retail. I am a listing agent in that sense. I refer out the families who want to see homes and the agents in my office are happy. :)
Real Estate agents do not need to be confined to being a Realtor, and in that sense we can be helpfull to investors. I earn every bit of money that I make and am fully aware that the "real " money is in the real estate investment itself.
Not all investors are cool to work with. Often I will do quite a bit of research on properties. Back taxes, infrastructure requirements, rehab costs etc....only to end up hearing that if they make a deal I will need to find someone else to pay me. I love my work and hate asking for money.
I'm sorry to rant, but I often feel as though I am going against the tide when other agents and or investors can't see beyond the "regular".

Oh dear....I had to run out and pushed the send button. I'm running around looking for furntiture for a coorporation crew coming to town and needing to pay attention , all the while worrying over my post.
Thank you Taz.....very much :)