Okay... This Might Sting A Bit...
Unless I miss my mark, there are probably more than just a few Realtors® in BiggerPockets who are looking to be "Investor Friendly".
My Advice? Stop.
The reasons are simple.... by being "Investor Friendly" you many times are setting yourself up for disaster. Here's what I mean....
Being an "Investor Friendly" Realtor® means that at some point you will have to put yourself in a fiduciary relationship with an Investor. That sucks.
Why? Because then you have to do everything that the Investor wants done! You have the entire C.A.R.L.O.A.D. of Fiduciary responsibilities as well as the liability... FOR WHAT?
A Teensy bit of commission? Please.
What's Needed Is A New Kind Of Agent
There will always be agents. There will always be Realtors®. Let the other Realtors® in the world, and Agents fight over the scraps that are tossed to them by the Investors and regular consumers in the marketplace.
My suggestion? Be the Realtor®/Investor who is always "In the Know" about the best deals. The one who ALWAYS controls them, knows about them, or has access to them before others do.
What this requires is a new work ethic however...
New Work Ethic For A New Realtor®/Investor
In the not too distant future, Realtors® will be more apt to represent themselves, instead of Investor clients in a transaction. Why? Because it takes the guesswork out.
Gone are the days of the Investor "Backing out" of a deal because they were unable to find a buyer.
Destroyed are the times where you have had to put away your dreams because someone else failed to close.
No more staring at a dwindling bank account because a Investor didn't have vision.
By Agents taking charge, and being agents on their own.. they will have more control over their own income, and their happiness.
This new "Real Estate Entrepreneur" is on the horizon... More and more agents like myself are declaring our independence from the traditions of our brokerages and seeking more freedom for ourselves.
Revolutions Aren't Always Easy
Rest assured. A new generation of agents are reeling from the events of the recent past... Their memories are filled (like mine) with the greed of banks, the greed of homeowners, and all of our incomes being held hostage to the desires of others.
I'm not saying to be unkind, nor to STOP working with them at ANY time... I'm saying... change the script! Stop being the weak, willing, always giving "agent" in the equation.
Be the Principal.
Listen, it will not be long before these Investing Agents significantly change the landscape of the Real Estate Market as you know it.
And when it does... remember where you heard it first!
Have A Powerful Sales Day!
@Karl Krentzel , make sure you include "the greed of homeowners" in your script when talking with Sellers. (Yes, it's me again). Cheers...
@Karl Krentzel I guess you are simply not very good at screening your buyers. Are you telling us no retail buyers ever back out of a deal?
Four reasons agents should work with investors
- Repeat business means less need to keep looking for new clients
- Double the business per deal, find a deal for a rehabber and you will likely get the commission on the resale too.
- You are dealing with experienced buyers who do many deals a year and do not need hand holding.
- Arguably lower fiduciary risk as you are dealing with a business professional not a consumer.
You are both kidding yourself, and potentially misleading readers to imply there is no risk to an agent being a principal in a deal. All your responsibilities as an agent will still apply.
And when it does... remember where you heard it first!
You are kidding on that one right? Agents have been doing deals for their own account since before you were born.
@Ned Carey is 1000% correct. Investors can make for much, much better clients. For the most part, it's all about the numbers. This makes my job easier.
Worst case scenario I get to deal with an overly cautious investor frozen by analysis paralysis. Worst case scenario with a "regular" buyer is
But please, all those Realtors out there - don't serve the investors. I'll do it!!!
Let me call my realtor and ask him if he regrets the 6 houses we've bought through him in the last 18 months.
I'll particularly ask him about the ones in which we put offers in without even looking at the properties first (4). He never even had to show them to us. First time we saw them was at inspection.
I'll ask him if he was ever worried about our financing falling through.
I'll ask him if he was ever worried that we didn't understand the contract I was signing.
I'll ask him if he hates that he doesn't have to provide us with CMAs, because we already know the value of what we're buying.
I'll ask him if he hates how decisive we are. I'll ask him if he hates how he never has to drive us around, showing us 50 properties in a day and then we reject them all because we don't like the color of the carpet.
My realtor is awesome - he manages the seller and their agent. He keeps track of all deadlines and makes sure everybody is doing what they need to do. He's great at follow-through. He's great with ideas. He's great at understanding when there's room for negotiation on something and when there isn't. But I think he'd easily admit that we are by far his easiest client in the last two years.
I'm sure he's crying all the way to the bank.
everyone stop being so pissed, this guy is obviously trying to sell some course or something taylored to the realtors. What he described is a realtor's job, so he is just selling.
I am greatly saddened by the fact that bigger pockets is moving more and more in the direction of selling things to newbies and people who are trying to become a REI. The sense of community is really starting to disappear for me, for instance, having to see this useless post.
And yes I agree with everyone. I also wonder if my agent is crying about the last 45 doors and 2.2 millions I bought with her in the past 12 months.
@Nazz Wang , if you're saddened about BP, I shudder to think what you must think of CREonline.
But doesn't the fact that we can still vent our spleens here (humorously) help with the sense of community? Cheers...
first it was "who is more unethical--car dealers or realtors? lots of fish took the bait.
today...OK This Must Sting A Bit
If I want to see if the fish are biting I will follow this thread........
@John Thedford all I can add is thank God for docu sign or hello sign or one of those on line systems.. I will not work with a realtor that try's to fax me things or scan and e mail and expect me to print them out etc.
this is a tough one.. obviously there are investors that perform but there are SOOOO many that don't and waste agents time especially new agents. When I had my brokerages I saw this quite frequently... Especially when a TV promoter has just come through town.
Its incumbent on the agent to qualify their investor to make sure they are real and not wanna bee with no money or means..
And each market Is unique for sure.. Like in our market SFR's are really only bought as fix and flip. not for buy and hold .. there is some but most buy and hold is units.. and you have agents who specialize in selling units. ANd they are pretty good at filtering investors .
And for those wanting to buy fix and flip the market is so robust.. they are pretty much smoked out in a matter of hours.. either you have the money for a EM deposit usually about 10% of purchase price and close in 7 to 14 days or you not really competitive for the real deals.. LOL... so the market kind of finds its own equilibrium.
IN other markets were there is an over supply of derelict homes things are much different.
Little bit of info - lots of fluff. Blanket statements with no backing or instruction are a waste. Fancy graphics and sales guru talk provide absolutely nothing . Thanks for the waste (again) @Karl Krentzel !
Fascinating that so many should have both positive, as well as negative feedback...
Regardless, I welcome it all, and as @JohnThedford so accurately noticed...
"This must sting a bit" is indeed meant to be eye catching, and the message is in fact directed mostly towards Realtors®.
As to the "Sell a course" route, I needn't do that, as over 480 podcasts and dozens of articles penned by me already tell the tale of my giving to the Wholesale community.
Rather, it is a message directed towards Realtors® to encourage them to not only represent YOU as an Agent, but be more mindful of their OWN investing. A way to encourage them to be sure to invest on their own instead of looking ALWAYS to Investors for deals.
Certainly there is none among us that would argue that point.
Have a Powerful Sales Day!
Yes, a trail blazer or an outcast, a master of promotion that passed a real estate test maybe?
I didn't notice an favorable remark, but I'll agree.
Yes, there are the younger, more energetic, more conniving Realtors out there, ignoring the concept of owner's equity, ignoring the concept of net listing arrangements under the banner as dealing fort themselves....... except they don't buy, they just take owner's equity and flip the contract. I guess we will see how long they stick around. :)
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