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14
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9
Votes
Warren Nelson
  • Real Estate Investor
  • Philadelphia, PA
9
Votes |
14
Posts

The answer is blurred in explanations

Warren Nelson
  • Real Estate Investor
  • Philadelphia, PA
Posted Dec 31 2014, 17:56

Forgive me as doodle as I just felt like writing. I read all types of comments from both side of the line of real estate agent and investors. As always there is always two sides to every story and everyone has an opinion. And as always the answer is blurred with explanations. 

I represent only five groups of investors and they all subscribed to the same training and investment theory. If they followed the program as it is suppose to work then I would be writing offers on a weekly basis. However the human aspect which is never accounted for kicks in and works against the program. As an investor you can appreciate not pulling the trigger on a deal just because the number added up and if it all works at well you can brag about it later... or not. I represent these investors and like every other hard working citizen needs to put food on the table and a roof over my family. Naturally I want to write deals every minute of the day but I take into play the human emotion aspect. I represent these investors and have to make sure that they are purchasing an investment that matches the program they are following. Even when that job is complete there is no guarantee that my investors will make an offer on it. The numbers are there so why am I not writing? The Human Element.

When an investor walks through the house they emotionalize the property and then visualize the potential. This is all wrong. This is where a very large majority of investors fall. This is why I am only writing a very small amount of contracts even though I'm representing investors with capital to invest. Even though I find the property with the formulated buy numbers the deal still goes untouched and sold to someone else. It true that there was money to be made in every deal but something scared the investor or the investor simply didn't move on it for one reason or another. The Human Element.

Now it might seem like I'm changing the subject here but I will make my point taking this route so please hang on.

Little did I know when becoming a real estate agents so many cycles ago that I wouldn't be in the real estate business. I entered the marketing arena when I stepped into the ring of what I thought was the real estate arena. I had visions of Boston Legal on my mind when I received my real estate license thinking I'm going to work for some big real estate outfit and they will supply me with the clients they want represented. However the reality became quite clear real fast that I needed to hustle the streets to find those that needed my services. So I became a marketing guru with real estate as a by product. As investors your arena is just as deceptive and you need to know that your job is “Employment Agency” with investing as a by product. Buy low sell high are two slices of bread and what's in between is what makes the sandwich. A successful sandwich is what is built between the two slices.

The most important aspect of any investor is their contractors. The investor lives and dies by the contractor. The investor can play with all the numbers in the galaxy but if that contractor isn't spot on then the house of cards comes crumbling down. That being said it's forgotten the moment the sentence ended... See what I mean?

So what needs to be done to make things work?

The simple answer is separation. Take the real estate investor out of the equation. What do I mean by that. It's simple. There is no real need for an investor to view any property they are investing in. There is a difference between purchase and investing. Now if you think this idea is far fetch let me quickly give you an example. Many states sell their tax certificates and tax sale properties to blocks of investors and these investors never get to see the properties that are packaged by the state city or municipalities. Many states no longer allow small investor to bid on tax sales or tax certificates as the big boys will buy up the whole block sight unseen. Those big investment houses then send out contractors to submit bids and plans for partial or complete rehab then decide based on those estimates if the property should be rehabbed flipped or wholesaled.

The investor is not purchasing a home but rather making an investment. The investor simply wants a positive return. The investor who has a contractor who can go out and submit a bid and plans for partial or complete rehab is what the true real estate investor needs. That investor does not need to see the property but rather crunch the number from the submitted contractors estimates. The investor then contacts the real estate agent to confirm those number for a resale flip or wholesale.

When a real estate investor wants or needs to see the property that their group is purchasing then the human element will always interfere with the number of contract the real estate agent is writing and the argument between real estate agent and investor will continue to be fought in vane.

Well my wife just told me it time to get ready for the New Years celebration so it's time to stop doodling. Will I post this or will it sit in my computer with all my other doodling?

Happy New Year. Change starts now...

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