What’s going on fellow real estate investors? This is John. We are in the final stretch, coming up on secret 9 and secret 10. And we’re gonna get into it right now with secret 9. And we’re gonna be talking about getting an agent. So, this sparks some controversy sometimes within the real estate community, should I get a license or should I get a realtor myself? And it really depends on what your investing goal are, it depends on what your skill set really is as well. Does it really help your business? Does it hurt your business? Can it hurt your business and can it really help your business, depending on what it is? And you’re gonna get a variety of answers, but at the end of the day, you don’t wanna throw away. Now, granted, most of the resources that are out there are homes that are possibly for sale. There’s probably more homes. In fact, I know there’s more homes than are possible on the market than there is just in the MOS. The MOS really only accounts for about 25-30% of the possible homes that are in the market.
Granted, that’s an estimate, but at the same time, it nonetheless holds pretty true. And the one thing that kinda falls a little bit to the Pareto Principle, that 80/20 rule. And honestly, the whole agent question as well falls into the Pareto Principle that we’re gonna be talking about, the 80/20 rule as well, cause you really have about 20% of the agents out there that are actually doing about 80% of the volume. So you wanna make sure that when you’re finding somebody, you’re finding an A player, you’re finding somebody that’s gonna be a go-getter for you to meet your needs. Now, at the same time, you wanna make sure that the person you’re finding is going to meet the criteria, which means you need to have that criteria laid out for them.
And again, you might go through a few iterations of agents. You might have to go through four, five. You might even have to go through 10. I don’t know. It really depends. Now, if you’re … And we’ll get into this in the next video on things that you need to make sure that you’re being responsible for, but you need to make sure that you have very specific communication with the agent on what means success for you in that relationship, because how can they help you if they don’t know exactly what you need in the best way? We talked about that in the Act of Listening this last time. So maybe you could even see if the agent that’s looking to work with you as an investor is actually actively listening to you. You know what? You might find out quickly that that person is not the A-player that you thought they were.
Now, just because a person does a whole bunch of deals in the area, doesn’t mean they work well with investors. You’re obviously gonna be putting in offers that are pretty much lower sometimes, and I know some real estate agents might even scoff at the idea of putting in a really low-ball offer for stuff, but once you find one that understands the investment criterion, it might take some coaching on your part to make sure that they understand what it is you’re looking for, and why, even though you’re getting a little bit of a discount, even though they might be taking a hit whether you pay them as a fee to buy or a fee to sell, or you actually do give them a little bit of the commission in either case, and even though you might be buying lower for a buyer’s agent that could be getting a lower commission overall, you’re gonna be doing volume.
For you, this isn’t about so much of the one-off retail buyer that’s gonna be buying one house and then selling in the next five to seven years and then hopefully they have some friends that you can refer to the agent, you’re gonna be trying to do volume. One houses, two houses, every month, every two months, every three months.
Or maybe if you’re a flipper or a wholesaler and you’re just running deals through, they’re gonna get smaller and smaller chunks on each deal but because you’re doing the volume you are, they’re actually making a lot more money in the long run. And hopefully you can help them see that as well.
So again, you A-players are gonna be out there. They’re gonna be telling you what the best areas are. When you come up with your criteria, whether that’s single-family lease option, whether that’s gonna be buying whole rentals or wholesaling, rehabbing, they’re gonna have the pulse on the market and you wanna make sure that they’re actually putting you in some of the best spots that you have based on your criteria, as well.
And again, if they’re not meeting your needs, find another one. Find multiple at the same time if you have to, to find the right one to work with, or the right few to work with. Build a team if you have to. But remember, make them A-players and if they’re not, boot them off the team.
With that, make sure you’re following us on Real Estate, REIWealthAcademy.com Follow us on the blog. Follow us on the Facebook page. If you’re in the Roanoke Valley area, Roanoke Real Estate Education Group is the perfect spot for you to be. Make sure you’re engaging. And this is John. I’ll see you on the next video for secret 9 and finding the right agent.