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Tuesday, 23 October 2012 03:35

Investor Insight: Time to lose the Realtor?

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Cap-rate challenges and a slowing real estate market mean investors are reconsidering their reliance on Realtors. But should they be? Jemima Codrington reports.

 

Video transcript below:

Jemima Codrington: You already have an extensive portfolio and you are about to purchase your next investment property. So you don’t need a realtor. Right! Hi, I am Jemima Codrington and welcome to Investor Insight on Crew TV. Even if your portfolio is large and varied, some professionals believe that seeking expert advice should still be the first step on making your next investments. 

Tarik Gidamy, TheRedPin.com
Tarik Gidamy: Absolutely, I think it’s really critical for anybody buying or selling real estate to make sure that they get professional advice. You know you wouldn’t, you know if you had an ache in your leg you wouldn’t go to a mechanic, you would go to a doctor. You know and so we take pride in our profession as realtors to be able to give amazing advice, you know, refer you to the right pros with regards to mortgages and anything else that would be pertinent in order for you to make the right investment and that’s what’s really important is that you have all the right ingredients in order to make that investment profitable.

Jemima Codrington: When working with a realtor make sure they are taking all the necessary steps to help you maximise your profits.

Tarik Gidamy: I think they should take all the necessary steps, starting from finding out you know what exactly the appetite of the investor is in terms of how much of a commitment investment-wise they are looking to make. And number two is using real statistics and things that actually make sense to the investor’s intended outcome, whether it be for them to either flip a unit at the time of closing or whether it be to get something long term for a hold in the right area.

4 comments

  • Jason Skare Wednesday, 23 January 2013 11:06 posted by Jason Skare

    I agree with Mitch. As a Mortgage Broker and Investor, I see first hand what an uneducated agent can do to make or break a sale and profits. Some will tell you what you want to hear just to get the listing and then once the property doesn't have offers, they suggest the easiest route (for them) which is reducing the price. This only benefits the realtor.

    Same issue when it comes to buying. Any good realtor knows the market and what a home will sell/rent for once your project is complete.

    One of the first "team" members any investor should have is a knowledgeable and straight forward Realtor who just as concerned about your success as theirs.

    Most investor who have long term success are part of one or more real estate investment groups. You should find half a dozen agents and pick the best of the bunch.

  • Tatiana Konkina Tuesday, 13 November 2012 20:15 posted by Tatiana Konkina

    I am a Real Estate with 15 years of experience and also an investor with 14 years of experience . I watch how people make a decision to invest money in Real Estate . Very often they relay on friends advise or they do there own research or they hire a Realtor who lives Outside of the area of expertise . I watch my colleagues who do not know the neibourhoods and the future potential . The success to invest in Real Estate is find a Realtor who knows international markets to understand the trend , who lives in the area of expertise and who is an investor in the similar field . Very often I watch agents who sells the project before VIP agents and I would not advise my clients the buy this project .

  • Giselle Isaacs Monday, 29 October 2012 13:50 posted by Giselle Isaacs

    The Realtor presented in the video did not present any information or tools that would show how Realtors are an asset when seeking an investment.

    I agree with the above comment - you have to be sure you are working with a Realtor who actualy knows the ins and outs of Investing. I would suggest looking for a Realtor who has an investment portfolio of their own. Who's been through the actual processes.

    It's not about just having access VIP access for new condo's. You need to carefuly analize your numbers, your ROI, the longterm outlook. Also being aware of tax implications and amount of money you need for different types of investments. Not just the purchase price - but tax implications, vacancy costs, management fees.

    If we are trying to portray how Realtor's help.....then you need to exemplify that in this news piece.

  • Mitch Parker Thursday, 25 October 2012 16:21 posted by Mitch Parker

    As a former Realtor and now full time investor, I can tell you first hand that the major hurdle when seeking professional advice from an agent is finding an actual professional.

    Most Realtor's don't have a clue what to do or look for when it comes to investing. They just want to buy or sell a property and earn a commission.

    The best thing someone looking to invest can do is attend a local real estate investment meeting and network to find the right contacts. Wandering into your local sales office will probably just lead to frustration and potential monetary loss.

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