On 31/10/18
With so much information available for free nowadays, do you really need a real estate advisor? Is it just about making money for themselves and scattering commissions from investors – or can they really help everyday Australians create wealth? ?
Simply put, a real estate advisor lays the groundwork for your investment.
A real estate advisor must, first and foremost, spend time understanding your personal considerations, getting a financial overview of your current situation, and openly discussing your goals and circumstances.
The more a person spends his trading time getting to know you and understanding your needs, the more he should be able to explain a set of real estate investing strategies. Just as importantly, they should be able to demonstrate how everyone would strive to help you achieve your individual goals.
By detailing and balancing the pros and cons of each strategy and helping you evaluate them impartially, they will be able to help you make an informed decision about the best option for you.
You can start with a particular strategy or course and evolve to more sophisticated strategies over time. Likewise, you may never need to focus on one strategy. The main objective is not only to understand the variety of options available, but also to adapt them to your particular situation.
This is essential at the time of investment, as well as during the life of your portfolio, to ensure you have the flexibility to adapt to the changing lives of your business. portfolio, so that your portfolio can grow effectively with you over time.
The most important thing is that you do not work with a person who is a cookie cutter and offers a unique strategy or history.
But how do you determine if anyone is a professional, experienced and ethical real estate advisor – someone who has the potential to help you grow your wealth exponentially – as opposed to a "spruiker" "Who are you trying to search an old property to line up their own pockets?
The big question is how the real estate investment advisor is paid.
With so many "free" tips available (of varying quality), many investors refuse or refuse to pay for advice and prefer a product model in which no fees are charged.
Without a business model suited to these customers, companies are placed in a compromising position. Like the advice provided by experts from any other sector, such as architects, doctors or mechanics, the investment of time and money is considerable in training and continuous development. To become a reputable expert and maintain the validity of accreditations, the provision of such advice has a commercial cost.
People do not give much importance to what they get for free. Even when they receive free advice, they do not tend to follow him
Conversely, it is an unfortunate aspect of human nature that people do not give much importance to what they get for free. Even when they receive free "advice", they generally do not tend to follow it or implement it. In essence, although they saved you the cost of paid and qualified advice, they actually lost because the advice they received was not kept in any respect.
Every week, I address a large number of people who inform us about our services and want to understand what we do and our pricing structure. There is a constant number of people who want a service but do not want to pay for it.
At We find houses we have an independent and independent real estate investment advisory service that thoroughly educates clients on the various investment trajectories. property investment. We explain the fundamentals of the real estate and financial markets, as well as the cash flow modeling of these options based on the client's criteria, risk profile, budget and schedule. For this education, we charge a modest fixed amount.
We spend our time educating them about the difference between a free service and a paid service. However, it is a commercial reality that not being able to provide a service to these people is a business outcome lost in a highly competitive market and in which customers can easily fall victim to unscrupulous practices.
If you are still looking for a free service, consider this: a reputable professional advisor can help you clarify your investment strategy, taking into account your personal situation, such as the risk profile, the desired result, the deadline, etc. . budget, etc. A buyer agent then goes on the market to select the appropriate properties through a methodical process of research and market analysis that identifies the locations and properties matching your goals. 39, global investment.
"Real estate advisors are dedicated to providing professional service to clients, not to whipping property."
I constantly say that affordability is not an investment strategy. Data analysis, research, identification and the due diligence process require access to multiple tools and many hours, which in the busy lives we all experience, is a huge task. As a result, many people are turning to the professionals because they would rather outsource the task rather than integrating it into an already busy daily schedule.
This is the real value of working with a licensed property advisor and a purchasing agent. Ask yourself, is it really worthwhile to miss out on additional capital growth of $ 50,000, $ 100,000 or more in every real estate transaction to negotiate fees of several thousand dollars?
Often, people place a lot of importance on the fact that they have been able to negotiate the asking price. However, the most important is the real value of the property and the advantage of securing the one that suits your portfolio. If someone asks for 600,000 USD for a real estate worth 500,000 USD and the buyer is negotiating 80,000 USD on the price, he still pays too much. If the seller asked for $ 450,000 for the same property and the buyer was paying above the asking price of $ 480,000, he always got a good buy.
How to spot a fake
Real estate investment advisors must focus on providing professional and independent service to clients who use their services. This is a very different role than a real estate agent who has a list of buildings for sale. Their only concern is whether a buyer can obtain the funds needed to finance the purchase.
True real estate advisers are committed to providing professional service to clients and not to whipping property.
The reality of the situation is this: the more I know about a potential client, the more I can serve him and the more we can be personalized in the way we help them. Real estate investment advice must be independent. this should not involve discussing a strategy, a property or a place. The advisor should have a thorough knowledge of the market, as well as a thorough knowledge of a wide range of real estate markets, locations and real estate investment strategies.
Unfortunately, I hear stories of horror every week suggesting that the level of advice provided by some businesses is entirely centered on the fact that the client can afford to buy the property that he has. 39 he wants to sell. The service provider knows what properties it will launch before even knowing the name of the client. This is not a real estate advisor – he's a real estate agent disguised as a real estate agent, and I can guarantee you that he has only the best of his interests at heart.
In summary: if a client wants independent advice and education and the ability to evaluate independent data on locations, financial modeling and strategy, then he / she should expect to pay separately for such a service .
If a "board" is offered for free or if the client wants advice but does not want to pay it, he must understand that the cost of that advice and commercial time must be taken into account somewhere. If this is done for free, one should question the amount of time spent on providing these tips because ultimately everyone has to pay the bills. If you do not pay them, who is it?
Similarly, with the service of a buying agent and his thorough knowledge of the place, his time is invested considerably in research, negotiation of the transaction, due diligence, settlement of the property, as well as the referral to qualified and reputable property managers, lawyers, homeowners' and real estate insurers and quantity surveyors. All the services provided by the agent of the buyer are designed to protect your interests and your investment. They bring to the role of years of hands-on experience and knowledge of real estate markets, a neutral perspective during the negotiations and an unbiased evaluation of the pros and cons of real estate according to the strategy you have chosen follow.
And yes, it all comes at a price. If this is not the case, you should again ask yourself: how do they earn their living if they give advice without being paid by you?
As renowned real estate advisors and purchasing agents, we operate with a high degree of transparency in all our client relationships, particularly with regard to the fee structure. We have a fixed agency fee structure for the buyer that depends on the type of property purchased and not related to the value of the property. For the majority of our customers, we locate existing / established properties; the fees for this type of property are communicated to the client before he agrees to use our services, and again before the purchase of a specific property, so it is taken into account in its decision-making process.
The lump sum is the maximum amount the client will pay. In some cases, as part of the negotiation process, we were able to obtain a portion of our buyer's agency fees from the seller or selling agent, and then the fees that our customer pays are reduced by the same amount. We also offer a direct service for developers to buyers whose strategies are adapting to new properties. In doing so, we reveal that, in most cases, the customer does not charge a fee. Most often, we can negotiate for the developer or seller to cover our buyer's agency fees for this type of property, so that we do not take double immersion at the same time and do not charge fees either. to our client. The reason the developer is happy to pay these fees is that they do not have to spend an exorbitant amount of money on marketing and advertising.
In the meantime, our customers pay nothing for our services, which ultimately cover the search for the ideal investment location to meet their needs, price negotiation and conditions, due diligence, management of project transfer inspections before settlement. Once you own the property, our service then extends to referrals to reputable property managers, property owners and property owners and quantity surveyors.
Our goal is to ensure that your investment is supported and protected from the start, and our approach results in a win-win outcome. This is an example of how the industry can work with maximum transparency and professionalism for the benefit of all concerned.
Paul Wilson
is the founder of We Find Houses,
providing investor training,
coaching and mentoring, as well as
finance and buyer services.
Disclaimer: The advice contained in this article is for general information and should not be considered as financial advice. Make sure you speak to a qualified professional before making an investment decision.
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