Today’s REI Classroom Lesson

Through years and years of experience, Bob Diamond chats with us today regarding the importance of finding the right realtor to be on your team and how it will help you grow your business bigger, faster.

REI Classroom Summary

By having an expert realtor on your side, you’re able to focus on what you’re good at and get more deals done quicker.

Listen to this REI Classroom Lesson

Real Estate Investing Classroom Show Transcripts:

Mike: Welcome back to the FlipNerd.com REI Classroom where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.

Bob: Hi. This is attorney and investor, Bob Diamond. Well, I am your host and instructor today for the REI Classroom. And the question of the moment is, should you use a realtor or not?

Mike: This REI Classroom real estate lesson is sponsored by UglyOpportunities.com.

Bob: Well, when I first started investing which is way back in the Paleolithic age in 1989, I did everything myself. Honestly, I swung a hammer, I sold the house, I found the house. I did absolutely every step on my own. And what I found out was although that was a good learning experience, it absolutely tied me up and kept me from doing a lot of deals. And so what I’m going to suggest to you is that no, you should not sell it yourself. You should absolutely hire a realtor.

But here’s the key. What you should do is spend your time finding a great realtor with a really good plan. I just hired a realtor earlier today to sell one of my buildings and what I did was I made sure that this realtor has experience in the neighborhood where I’m selling, they have experience selling the kind of property I’m selling. Now this particular property is an apartment building. But this rule that I’m going to tell you applies to both.

Make sure that you’re working with a realtor who is active in the area where you’re selling, knows how to sell a building like you have. Again, I have an apartment building I’m selling so I found a realtor who’s experienced in apartment buildings. When I have single family houses I find a realtor who has experience in single family houses.

And make sure that realtor has a really good marketing plan. Ask them straight out and say, “Well, what’s your marketing plan?” And if they don’t have a marketing plan, well, that kind of gives you the answer. You want someone who does a lot of volume of sales because winners win and that’s pretty much the bottom line. And a winning realtor that knows how to move properties, knows how to keep them going, knows how to get your property sold also.

They also know how to give you the right advice on pricing. Because when you’re selling yourself you may not get the pricing right. And if you price it too high it’s not going to sell. If you price it too low then you’re just not going to get the most money out of it.

The other thing that’s very interesting that I found is that when you sell a property without a realtor, often times the buyer expects that you’ll deduct what you would have to pay the realtor as a commission from the sale price. So just to make the math easy, we’re talking about a $100,000 house, they’re expecting you to sell it for maybe $94,000, $95,000 because you didn’t have to pay a realtor. So you end up not only not getting the service and someone else doing the work, you also end up having the same money you’d have if you had someone else do it.

So what I’m going to tell you is that people that go big and people that are successful, hire experts to do the jobs that need to get done. And there’s a saying out there that you’ve probably heard that is the less that I do, the more that I make. What that means is you find the one thing you’re really expert at and you do that over and over again and you leave the other things to someone else.

So what I’m going to strongly suggest to you is that your best bet is to hire a great realtor, spend your time researching realtors, drive around the neighborhood, take a look and see who has signs up, call them, interview at least three realtors, get from them the price they think they should sell out, what their marketing plan is, and that’s how you’re going to get your best realtor. And also let them know that you’re interviewing three realtors so that they’re going to really come and bring their A game.

That is the real estate instruction of the day. I’m going to tell you when you do things like that and you hire realtors, you’re going to do your job faster, you’re going to be more successful, and you’re going to go bigger quicker when you use realtors to do the work just like when you’re going to use a contractor to do the contracting work.

So that’s the lesson for today. Go hire realtors, spend your time finding and putting deals under contract and that is the way you’re going to make the most money with the least effort and least aggravation. So this is attorney and investor Bob Diamond for the REI Classroom for today. Hope you loved the tip. Hope you use it to your success in the future so that you can do all that you want to do. So wishing you the best of luck. This is Bob Diamond signing off.

Mike: HomeVestors, the We Buy Ugly Houses folks, is a franchise system of hundreds of real estate investors that have purchased over 65,000 houses. If you’d like to learn more about the most powerful real estate investing system in existence, whether you’re a pro looking to take your business to the next level or whether you have no experience at all but a burning passion to be successful in real estate investing, please visit FlipNerd.com/ugly to learn more.

Please note, the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers, or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.

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Bob Diamond is a practicing real estate attorney and investor with years of experience in real estate law, investment, development and is the author of three books on real estate investing. You may be familiar with Bob from his appearances on FOX, NBC, CNBC, NPR, or the Flip That House television show on TLC. Bob graduated from Villanova University with a degree in Finance in 1987 and from Temple University School of Law in 1993. He became a Pennsylvania licensed attorney in 1993. During his career outside of real estate and law Bob worked for Meridian Mortgage in their default and REO department, for Arthur Anderson and Coopers and Lybrand as a business consultant, and for the international law firm Cozen O’Connor as a real estate attorney. For his own account Bob has been investing in real estate for over twenty years and has participated as the buyer, seller, or attorney in over one hundred million dollars in real estate transactions over the past twenty years. Bob has been teaching real estate investing since 1999 so you have probably heard of Bob in the investor world where he is known as the ‘guru’s guru.’ Because of his legal expertise and experience as a real estate attorney, Bob is sought after for his advice and counsel.