|How to Protect Yourself With Realtors
Before we even get started, I want to say that there are definitely a few good Realtors
that are a tremendous asset to your business. When you find these men and women, you absolutely MUST
hold onto them. They will bring you hidden deals, can simplify the purchase and sale process, and
can make you a tremendous amount of money.
So, again, when you find these select few, don't let them go too far. They are worth
their weight in gold.
The problem is that Realtors were generally taught to sell houses very traditionally and
don't often have an understanding of the creative methods that investors utilize. If you remember
that a Realtor is simply a salesperson, you will minimize your frustration substantially. Some
salespeople are better than others.
You must always check and recheck your Realtor until you have established a trustworthy
relationship and he/she knows how to help you run your business. Also, you must make sure that your
Realtor understands contracts and actually reads them!
Now having said that, I will just go over a few of the things that our late Realtor did
that caused substantial problems for us. For one, she was not acting in our best interests. We bought
over a half million in property with her in our first four months and sold another property with her.
We had three contracts fall through. So, a potential of over $1M to her in only four months.
First, she ended up making us talk directly to the other Realtors and/or sellers on more
than one occasion. In fact, on the one property we listed with her, she basically forced us into
accepting the offer (though she convinced us that she could sell it for a higher price and we had
offers at that price ourselves previously). Not only did she basically make us take the offer, she
made my negotiate directly with the buyer and the buyer's Realtor At the very least, your Realtor
should keep you from having to talk to OTHER Realtors As if one isn't stressful enough!
Even more, on this particular deal, she tried to charge us additional fees which we had
paid her when we purchased the property initially. And, throughout the length of the contract, she
continually worked in the best interests of the buyer, though we were her clients and the buyers had
their OWN Realtor
She also cost us $1500 on our next deal. She sent over the wrong signature page of the
contract that stipulated they sellers pay for termite treatment. Now, normally, I would just assume
that it was an oversight, but I am pretty certain that she simply didn't want to address the change
on the contract because she continually told us that we had to bend over backwards because this
Realtor was SO nice. So, she ended up losing that money for us only a few weeks after the previous
Furthermore, she had us in several potential lawsuits for not following through with
paperwork. She never sent addendums or verified receipt of such and almost lost our deposits on
three occasions totaling over $8000. And then, to top it off, she had the audacity to yell at us
for not following through on all of our deals. I politely explained that an investor may not always
follow through as they gain information throughout their due diligence. We had a rather heated
exchange of words and agreed to part ways.
The long and short of it is basically that you need to always follow up and verify,
verify, verify that your Realtor is doing his/her job especially in the beginning. It is kind of a
catch 22 because you are trying to learn the business at the same time.
One more thing to note, seasoned Realtors may not be as investor friendly as new
Realtors But new Realtors lack the experience and knowledge to dot all the i's and cross all the
t's. But remember, they have state licenses and are bound to very specific rules that you can
politely remind them of.
Always ask other investors for referrals. They should always know one or two that can
assist you in the beginning and to help you get going.
Stacy Holder and Heather Seitz began their real estate investing career with absolutely nothing! They
learned to leverage other people's time, money and resources to purchase over $2 Million in real
estate in their first 8 months.
They have just completed two products, The
"Complete Guide to Getting
Started" and "The
Complete Guide to Organized Rehab."
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