Tim Bell power team 1

Okay, so now we're going to talk about your power team. It's important to have some people on your team that can help you with your real estate investment business. A lot of people worry that they don't know everything about everything they need to do in their business. Truth is, you've got lots of people to help you and you should have some people on your team to help you. Now, the longer you participate in your real estate investment business, typically the more people you're going to need. But we want to talk about some basic people that you're going to have on your team that can be helpful for you and can be good for you to get started in your real estate investment business. So the first person that you need to have on your team, there's a list here you can see. The first person you need to have on your team is a real estate agent. That's one of your primary team members. Now, real estate agents. It's important that you have some of the information that they have to provide. Real estate agents can give you lots of different types of information. One of the most important things you need a real estate agent for is to provide you with comparable properties or to provide you with comparable property values. When we're trying to calculate or figure out our after repair values on properties, we're going to get into that in a little bit later session when we talk about analyzing properties. But the after repair value on the property is a very, very important key piece of information that we have to get. And the most accurate source of after repair values on properties is a real estate agent. That's the primary reason why you need a real estate agent in your team. Now, we just went through contracts and as a consequence, you understand that you don't have to have a real estate agent to write a contract on a property. As I mentioned, to consenting adults, as long as they are not proposing something that's an illegal act, can consent to and sign and agree to anything they want. Okay, Again, I showed you that offer to purchase real estate that you can use which does not involve a real estate agent. It's just you and the seller sitting across from each other at the kitchen table. So don't think that you have to have a real estate agent involved in every transaction. Would say for most people, 75 to 80% of the transactions they do in wholesale do not involve a real estate agent. In fact, in a later session, we're going to be talking about 50 different ways to find properties. Yes, I said that. Right. 50 different ways. 5, 0, 50 different ways. Well, of those 50 different ways to find properties, only one involves a real estate agent and the MLS, the Multiple Listing Service. So the other 49 methods are not real estate agents and the MLS. Real estate agents can provide properties for us, and that's fine, and they will from time to time. But you have to understand that in our current marketplace, if you rely solely on real estate agents to provide properties for you for your wholesale real estate investment business, you're most likely going to be disappointed in the number of properties that are shared with you and that you find that could actually work. The main reason is because the MLS is the full, full, full retail source of properties. It's like the expensive department store of properties. It's like the Nordstrom's or the Dillard's or the Saks Fifth Avenue or the Macy's of real estate. Well, one of the cardinal rules, another cardinal rule that I haven't shared with you yet, but this is really important. You may want to write this down. Never pay full retail for an investment property. Now, it's okay to pay full retail for your own property because you want to live there, you're excited to live there, your spouse is excited to live there, you're excited to raise your kids there, things like that, that's fine. It's okay to pay full retail for your own house, but it's never okay to pay full retail for an investment property, ever. You can't. If you pay full retail for an investment property, somebody else has sucked all the profit out of it and there's nothing left for you. So number one rule is we can't pay full retail for a property. Well, the problem with the MLS multiple listing service and listed properties is they are indeed full, full, full retail for the most part. Now, generally speaking, in most markets, you're going to find that somewhere between 2 and 5% of the properties on the MLS could work for us. That said, 95 to 98% of the properties in the MLS will not work for us as real estate investors because of their full retail orientation. Now, why are they full retail? Well, it's pretty obvious. Number one, real estate agents get paid by commissions, which means the more they sell the house for, the more they're going to get paid. Obviously, they're going to raise the price up as high as they possibly can. The other one is more subtle, but it's still applicable and it still has an effect. And that is something called a fiduciary duty. When a real estate agent signs a listing agreement with a seller they create something called a fiduciary duty. The fiduciary duty means that they have to act in that seller's best interests and things like that. But the bottom line of the fiduciary duty is they need to squeeze you as a buyer for as much money as they possibly can on behalf of their seller. Therein lies another reason why the MLS is the full, full, full retail source. Because of that fiduciary duty that listing agents create with the seller. So again, part of the problem is that the national association of Realtors, which has been around since 1908, has spent more than a hundred years and millions of dollars convincing the average American to make a connection in their brain. And that connection is, I need to buy a house, therefore I need to call an agent. Buy a house, call an agent, sell a house, call an agent, Buy a house, call an agent, sell a house, call an agent. They have drummed that into us for more than a hundred years. As a consequence, many people when they first start, get started in their real estate investment business, they have that programming and so they say, well, I need to buy an investment property, I need to buy a house, therefore I need to call an agent. And that's what they do. They end up calling an agent, which is fine, it's not terrible. But all I'm saying is, since we can't pay full retail for a property and the MLS is indeed the full retail source of properties, then it's going to be unlikely that we're going to find lots and lots of properties that will work for us in the mls. Now, you will find a few properties here and there that will work in the mls, but most of them won't. So I want you to get over the idea that you need a real estate agent, number one, to be involved in every transaction, write contracts for you. That's not necessary if you're working just you and the seller. And the other thing is, I want you to understand that the MLS may not be the best source of properties. And, and that as a consequence, you don't necessarily need an agent to provide MLS listing information on properties that might be available for your offers or your bids. Okay, so we need to get over those two things in regards to a real estate agent. The real reason we need a real estate agent for our real estate investment business, as one of our team members, is so that we can get accurate, comparable properties to determine an appropriate and an accurate after repair value. And we'll talk extensively about that in our session about analyzing and assessing properties to figure out the numbers on a property, so you need a real estate agent.