Does everyone here use a realtor when purchasing investment properties? For the people that do not, what are your reasons? We will have an LLC (3-4 partners) planning to purchase our first property hopefully this spring and I'm just wondering what people's thoughts are. Thanks in advance.
Unless you are an experienced investor and are using the fact that you won't be asking for a buyer's agent commission as a negotiating tool then there's absolutely no advantage that I see to going it alone. The commission almost always come from the seller's side of the deal, so it's no money out of your pocket, and a buyer's agent will have a contractual duty to protect your interests. Admittedly, some do that better than others!
Thanks @Jean Bolger . That was kind of my thoughts but nice to hear it back from someone.
@Erik Sell Why would you not? The Realtor should be an important member of your Power Team. In fact, we use 4 different Realtors...for 4 different focuses.
Your time is too valuable to be doing what the Realtor is trained to do. Just make sure you don't just use any Realtor. You MUST use one that has experience working with investors as a buyer's agent. Just because they say they do, doesn't mean they do. Ask them how many investor deals they have done, and do a month.
Despite the fight I am having on another thread about just how long the current setup will continue, yes I do. If nothing else, it gives me recourse to their insurance if they screw up, and it doesn't cost me anything.
I expect to continue to use realtors. I also expect that the days of sellers paying 6% commissions (or any commissions, rather than a flat fee to a Amazon-like supervendor) are numbered.
I'm realtor and I'm going to point out a few things that you should know.
Any smart investor has advisors, it could be a CEO, a businessman, or investor.
They have resources for areas that they not have expertise.
Now do you research but why does all these Flipping shows have Realtors that sell the properties? They also assist in purchasing what they do not show.
Whenever you get into anything you want to know a lot about what you're in.
Scott Yancey one of the successful flippers from Flipping Vegas has a team
http://goliathcompany.com/about_us.htmlTake notice he's a Broker with Realtors on his team.
Do not be misguiding by other investors that say "why pay a commission"
Your paying for an expert no matter how much you think you know we're apart of a regulated industry and a lot of information is available to us not you.
This is why when we sell our properties we must reveal that we're a licensed Real Estate Agent.
Depending on what you're doing in Real Estate you might want to connect with others li a contractor, landscaper, electrician, carpenter, etc.
Teams will always win, thinking I can do it alone does less.
Example: A person that takes their business and franchises will always do more than the man that thinks I can open 1 store at a time on m own!
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