Do We Really Need Realtors?

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Most people know that I'm not a huge fan of Realtors®. That I think you need one on your power team to run comps and that's about it. I was doing some reading online and I found an investor with a good thought/quote. This individual said that a "Realtor® is only useful if they do exactly what I tell them and if they remember they work for me". It also mentioned that seasoned investors rarely ever use Realtors® and that rookie investors think they are necessary. I fully agree. That is because seasoned investors use the techniques of the pros: wholesaling, subject-to, etc. While rookie investors think that you invest in real estate by hiring a Realtor® to find you an investment property.



Let's go back to that part about how they’re only useful if they do exactly what you say. This is not only true for Realtors®, but any member of your power team. Your accountant, lawyer, and handyman-they all work for you and should be quickly replaced if they're not doing their jobs (and don't forget you will constantly be replacing certain members of your power team such as Realtors®, handymen, home inspectors).



As I mentioned at the beginning, Realtors® are needed for comps. I've received several emails lately from people who are having trouble finding someone to run comps for them. First, you can try the websites www.sitexdata.com and www.realquest.com to run your own comps.



Then, you need to have multiple Realtors® who can run comps for you and the best way to find these people is by networking at your local REIA meetings. One of my mentors has a saying "You can't do business sitting on your butt". So, if you don't have any Realtors® on your team you can go hit ALL of your REIA meetings this month and make it your goal that you will not leave until you have at least one business card from a Realtor® who you can now work with (and remember the key of getting them to work with you is offering them all of the leads that you get and cannot use….always give them an incentive to do business with you).



Don't just read over that part about making it your goal to collect one card from a Realtor®. You need to sincerely promise yourself that you will not leave the meeting without a new contact. You need to write it on a sheet of paper. Stare at it before you head to your REIA meetings. These type of small goals—making a new contact at a meeting, making 5 calls per day, spending two hours per week driving for dollars, attending your REIA meetings, sending out 1,000 pieces of mail per month, sending 5 emails per day—these are the "secrets" to real estate wealth and freedom.

Comments(2)

  • bargain7628th April, 2009

    Jason, one of these days you are going to post something I agree with. (I hope.) We scour recent REO listings on Realtor sites, but otherwise do not use Realtors to find us properties to buy.



    We also use Realtors to get recent Comps. And we list our retail properties with Realtors and let them earn some money if they can sell the properties for us. How do you reward your Realtor friends for cooperating with you?



    You know, in this Real Estate buying and selling game: "One hand washes the other."



    As Zig Ziegler states: "You can get anything you want by giving the other guy what he wants."



    Maybe as you mature a bit you will come to understand that you really do NOT want to surround youself with yes-men that "are only useful if they do exactly what you say."



    Personally, any member of my Power Team must have skills way above mine in their specific area of expertise. I ask them for advice within that realm. I usually ask them the best way to handle the situation and "what are the alternatives?"



    Of course, how would I know? We only bought and sold over 250 houses in the past 6 years. The most recent buy was yesterday. We sold one last week and another is scheduled to close Thirsday. So we are still playing the game and we still have time to respond to supposed Guru nonsense.






    • bernel7728th April, 2009 Reply

      bargain76... THANK YOU.



      I encourage everybody out there to be very, VERY careful to who they pick to learn from.



      "Let''s go back to that part about how they’re only useful if they do exactly what you say. This is not only true for Realtors®, but any member of your power team. Your accountant, lawyer, and handyman..."



      People with that way of thinking, eventually reach a roof and they can''t break through. I don''t think I need to explain why that is.



      Good luck.



      Bernel.

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