Real estate investor training… why isn’t there more for Realtors?
We are told that real estate investment is our main source of retirement, yet we are not actively taught investment, or creative financing as part and parcel of the real estate education we receive.
Secret Untold Zone
However, there is a secret, untold zone in residential real estate that is not often talked of. This is the zone where people assign property for a profit. Otherwise known as “wholesaling”. Now, it has rightfully got a bad reputation from some who use it in a manipulative way.
However, there are also agents, as well as ethical unlicensed investors who wholesale property every day. However, when you are investing in Real Estate as a Realtor®, things aren’t the same.
The advantages of wholesaling for an agent are clear of course. An Investing or Wholesaling Realtor® is able to negotiate the line between ethical treatment of the customer in accordance with State law, as well as offer a level of protection for the customer as well as any other party to the transaction. (i.e. any “end use buyer”). The more successful you are at negotiating this line, the more money you make.
The unlicensed wholesaler will continue to provide a service to distressed homeowners. For those who wish to sell their home fast then they will continue to seek out whomever will help them. As Realtors®, I believe we are best situated to help them in this situation.
The Potential of Web 2.0
What is often not mentioned however, is how Realtors® across the country are beginning to realize the full potential that the new market is now providing them. With the advent of Web 2.0, Realtors® are learning to communicate together through social channels like Facebook, Twitter, Instagram, as well as dozens of others to communicate.
The fact that agents are now able to communicate faster and more effectively with photograph, video, and sound the things that heretofore you had to pay for is nothing new. As a matter of fact, when I had an objection that I did not know the answer to, I had to ask my broker. Now, a practitioner who has an objection they do not know the answer to, they can easily Google and quickly receive 40 responses to it.
In light of this new ease of training; why then is there no training available for the average Realtor® when it comes to the topic of Wholesaling Real Estate?
It seems to me, that Realtors® who invest have the best vantage point, the most resources, and are generally exposed to more opportunities than the unlicensed wholesaler. While I appreciate the work that all the hardworking, unlicensed, and perfectly ethical wholesaling investors out there; I wonder why we don’t have more Realtors® making that effort?
A Dinner than Provided the Answer
Recently, I had dinner with a Realtor® Investor who is very successful in Florida. He had come to Tucson on a several week vacation that he had earned through his real estate investing, wholesaling, and rehabbing business. As we talked over enchiladas, the reason became immediately clear.
During our conversation, I reflected how this conversation was much different than that of my other Realtor® friends. We talked about “sandwich lease options” and opportunities to joint venture with Sellers, or other investors, just to name a few things. It occurred to me that if I had tried to have the same conversation with another Realtor® who was not an investor, then it clearly would have been different.
The Mindset is the difference.
Not in the sense that one is “Smarter” than the other. Rather, the openness to a different way to approach a problem. While as a listing or buying agent, I learned how to list or sell property to my clients, I needed to learn as a Wholesaling Investor or Realtor® to keep my options open.
As a Realtor®, this freedom gives you an amazing amount of freedom. Counter to what you might think, being a Realtor®/Investor gives you several advantages.
One is the freedom to speak in truth about what the property without the concern that you are “saying it to get the listing”. Another is being able to be completely frank with the truly motivated about their situation, and offering real solutions to their problems.
The Reason Discovered
The reason occurs to me, that the reason why real estate investing or how to wholesale real estate is not taught to the average Realtor® is because the average Realtor® is not often willing to consider the creative, or lesser known ways of transferring property.
Perhaps that is a good thing. Since a majority of homes do not need to be sold via a wholesale transaction or at a deep discount, there is a market need for more of the “regular” (if there is such a thing) real estate agent.
If that is true, then it would seem also true that then there are a subset of homes that DO need to be sold as a wholesale transaction or perhaps for a deep discount. If there IS a subset of people that need that service, then there is a need for a trained agent to fill that need.
As much as I love my unlicensed brethren, I would love to see more of my licensed friends enter this game as well. It is simply another option that the Seller could take, instead of listing their home for sale in the traditional manner.
By selling their home to the Agent/Investor, they can gain all the benefits of the cash sale, while being able to ensure their transaction is being done in a ethical, legal, and aboveboard way. This will ensure that the public is protected, and served.
Which after all, isn’t that what you got into real estate for? That, and the money?
Tell me why YOU think there are ZERO resources for Realtors® who Invest like those on The Red Pill Investor on Google!!
I’d love to hear what YOU Think!