All Forum Posts by: John Sprague

Daria B, love the post & insight. I value your feedback as you are, obviously, well versed in this arena. Great start to setting a new standard.

To advance the conversation I'd like to know the best service/experience you've had with a Real Estate Professional in assisting you in your real estate goals. What specifically was done that WOWed you?

And if you haven't had the greatest experience, what would that look like? 

In a previous thread a member had a question about how to compensate their Real Estate Agent & it inspired this post. 

I believe that Residential Real Estate Investors are one of the most underserved communities by the Real Estate community. This is evidenced by the fact that one of the top five reasons an Agent gets licensed is to service their own investment needs.  Think about that!  They are willing to go through all the headache of the licensing process, pay all the fees, & (most costly) dilute their focus.  For what reason? 

I can only deduce that their needs aren't being serviced to a standard acceptable to them. 

With your help I hope to change that.  What type of value would a real estate professional (licensed or not) have to deliver to earn your loyalty? The kind of loyalty where you only call one person, email one person, etc.  

If, together, we are able to bring clarity to that vision, imagine what your world would look like?  Imagine the increased results while the stress levels plummet.  

So, let's make that a reality together.  What specific value would your representative have to offer to earn that level of loyalty? I'm eager to hear your thoughts!

Onward,

John Sprague

This is a great topic that deserves the proper attention. Let's put things in perspective. There are over 1.1MM Realtors in the Nation. What percentage can speak the investment language? Speaking in GREAT generalities, 5%? Then there is something called the 80/20 rule that tells me 20% of that population will do the lions share of business making them the resident experts. If I apply those thoughts & concepts, then 1% of the Realtor population can offers tremendous value to your investment business. That is an exclusive group. And just like you'd pay a great electrician because they are timely, do quality work, & you don't have any cursory issues, I'd pay your QUALITY Realtor. If they're in that club, they will pay you in spades for what you can compensate them. Make sure that relationship is equitable. If your asking how the audience feels about what seems to be a low payout, I can only assume you feel that your Realtor might be in that exclusive group noted above & that there is an inequity in compensation. You DO have the power to change that if You wish. AND, in most states, the Realtor has the power to pre-negotiate their compensation to avoid this in the future. I would start by asking the agent what they think would be a Win-Win for them. They might surprise you. They could say, "buy 10 more of these this year as it helps annuitize my business" or "introduce me to 5 other investors" or "I would like to earn your resale business" (usually at a full commission). Being an experienced agent in this arena I can tell you the gesture itself holds significant value. However, they could ask for additional compensation on that deal. If that is the case, you have a variety of options including increasing commission % that you could pay out-of-pocket, offering a flat additional compensation, offering a per event flat rate (I.e. $XX for each offer submitted), etc. I would open this discussion up with their broker to navigate through the legalities & influencing factors of each option. NOTE: Each state and brokerage has its own set of rules, policy's, & guidelines. I suggest looking up your state board's P&G as it pertains to compensation to educate yourself & using a brokerage that is investor friendly. (Open to doing anything so long as it is legal & ethical). Final thought, Identify that 1%er and YOU make sure the relationship is a win-win. Most of the 1%ers in the "knowledge" category don't know how to make these transactions make financial sense for them leaving them looking at them as an obligation instead of an opportunity. Help them out with that & you will be able to foster a sustainable relationship with a true professional rather than ripping through 30 inexperienced agents a year.