“Communication is a skill that you can learn. It’s like riding a bicycle or typing. If you’re willing to work at it, you can rapidly improve the quality of every part of your life.”
- Brian Tracy
Improving Communication Skills
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“Communication is a skill that you can learn. It’s like riding a bicycle or typing. If you’re willing to work at it, you can rapidly improve the quality of every part of your life.”
- Brian Tracy
The relationship with your real estate agent â whether buying or selling a home â is more complicated than most business relationships. For starters, itâs rare that one of your employees, your boss or a business associate would come into your kitchen to talk shop. Also, a real estate agent comes in and out of your life at an emotional and vulnerable time â one of transition and change. Itâs a very different relationship on many levels.
But sometimes the relationship just doesnât seem to be working out as you expected. Maybe the agent is too slow, not available as you much as youâd like, or is too pushy. It could be that you and your agent just arenât a good match.
For whatever reason, there may come a time to call it quits. Can you âbreak upâ with your agent? And if so, how?
Buyers: Take the high road
Real estate agents rarely require buyers to sign a written agreement. Usually, you, as the buyer, simply work in âgood faith.â This handshake agreement means you agree to work exclusively with the agent. You should never engage more than one real estate agent.
And thatâs fair. Agents often work long hours for buyers with no real guarantee of a payoff since they only get paid (by the seller) when a buyer buys. In some situations, a buyer may tell an agent, after months of working together, that theyâve decided to rent or move to a different town. Itâs part of the job description.
When working with an agent, start slowly if you can to get a better feel for the agent and the home buying process. The further down the road you go with an agent, the more awkward and difficult it is to end the relationship.
If youâve worked with an agent for some time but things arenât going well, have a heart-to-heart talk. Take the high road. Give the agent constructive feedback about whatâs not working for you. When possible, give your agent a chance to reverse course. If they still arenât performing, tell the agent you have to move on.
Sellers: Ask for a âdivorceâ
Breaking up with an agent may not be so easy for sellers because they are contractually connected via a listing agreement. They are obligated to work with their agentâs company throughout the term of the agreement. That doesnât necessarily mean that they have to have the property publicly listed the whole time, but that they canât work with anyone else during that term.
If things arenât going well early on, voice your concerns to your agent. If itâs not working out or isnât a good fit, a good agent will simply let you out of the agreement. But sometimes, being âdivorcedâ will infuriate a real estate agent and they may hold you through the term.
A seller can always wait it out and refuse to show the home or entertain offers. But, that doesnât do anyone any good. It is negative energy and not good for the agentâs reputation. If this happens, call the agentâs company (the real estate brokerage firm).
Let the manager know how your agent responded and ask to be released from the agreement. Most brokerage firms will want to keep a good reputation, so theyâll try to find another agent in the office that would be a better fit or perhaps release you from the listing agreement.
Avoiding the break up
The best way to avoid the real estate agent âbreak upâ is to do your homework up front. Begin slowly and keep your distance at first. While you may be excited to enter this next stage of life, itâs prudent to tread cautiously. Donât engage a buyerâs or sellerâs agent without first getting referrals, vetting candidates and having a few preliminary discussions.
via Can You Break Up With Your Real Estate Agent? | Zillow Blog.
A real estate agent should be your best ally when buying or selling real estate. Â But like any business decision, you need to do your homework before you start working together. Â Don’t just sign up with the first agent you talk to or the first person to send you a listing to look at. Â \
Make sure that you talk to at least 3 different agents before you settle on the best agent to work with. Â I would recommend getting referrals from people in your desired neighborhood (if you’re looking to buy), from friends and neighbors who’ve had good experiences with agents and from a mortgage broker. Â You may choose to talk to more but 3 is the magic number for you to get a good understanding of what to expect from an agent and what the agent will expect from you in this business partnership.
With this preliminary understanding you’ll be able to work through the rough parts of this real estate business, either buying or selling. Â And you’ll be less likely to feel like changing agents in the middle of the transaction process.
As any experienced real estate investor will tell you, not all investment properties are created equal. Homes that might be perfect for a primary residence, for example, might not yield positive cash flows â and without positive cash flows, youâre losing money, not making it.
Here are a few things to think about and properties to avoid when you are ready to invest your hard-earned cash equity capital.
1. Anything that doesnât generate rental income
These include second homes and land investments. Too many people invest in properties hoping that they will go up in value. But there is an opportunity cost to having money sit in real estate that doesnât pay any income. Even if the property goes up in value, youâve got to reconcile and account for all the money you would have earned if your money had instead been in the bank or in stocks and/or bonds.
2. Anything with negative cash flows
If you buy a âprize propertyâ â such as a fancy downtown fancy condo, beach property or vacation rental â itâs probably going to be 20+ years before you get your first dime of positive cash flow. And thatâs just no way to invest your hard-earned money. Pencil out any potential deal ahead of time, and buy properties that pay cash flow from day one â the moderately priced properties in non-prize areas.
3. Tenant-in-common (TIC) investments
These were popular from 2005 to 2007 as a way to diversify a portfolio without having to deal with the hassle of owning and managing real estate. But few people ever earned a dime because of all the costs and fees associated with the agreements.
4. Development deals
Development of land is extremely high risk. There are entitlement, construction and market pricing risks, plus countless others. These investments are best left to the extremely wealthy and experienced investors who can take the chance that theyâll never see their money again.
5. Condo-hotels, intervals & time-shares
These arenât even investments. Thereâs no ability to predict cash flows, rental income or future value/sales prices. And they are very hard to resell and typically only at a fraction of the original cost.
6. Foreign real estate
You might be OK buying real estate in Canada or Britain â however donât forget about the foreign currency risk â but foreign countries generally have different real estate laws, protections and fluctuating currencies, making these properties extremely high risk.
via The 6 Worst Types of Real Estate Investments | Zillow Blog.
So these are 6 investments to avoid, but what should you plan on investing in? Â I prefer to invest in single family homes that are below the median price (for the area) that are purchased at a discount and start with an actual positive cash flow. Â Then I plan on a short-term hold (maybe 2-5 years) and then sell and reinvest the equity into a new investment and start the process again. Â For me, simple is safe. Â It won’t knock the investment ball out of the park but it can be predictable and eliminates most of the risk in real estate investing.
What do you type of real estate investment do you prefer? Â Please comment below…
“The most delightful surprise in life is to suddenly recognize your own worth.”
- Maxwell Maltz
“The chains of habit are too weak to be felt until they are too strong to be broken.”
- Samuel Johnson
“In a moment of decision the best thing you can do is the right thing. The worst thing you can do is nothing.”
- Theodore Roosevelt
“The secret of success in life is for a man to be ready for his opportunity when it comes.”
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“Someone might have a germ of talent, but 90% of it is discipline and how you practice it, what you do with it. Instinct won’t carry you through the entire journey. It’s what you do in the moments between inspiration.”
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“Happiness is not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort.”
- Franklin D. Roosevelt
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http://www.investopedia.com/articles/pf/06/realestateinvest.asp
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