Real Estate and Beyond Blog

Real estate has become a top discussion at many dinner tables and water coolers around the country. Everybody equates real estate and riches together. Real estate education is a multibillion dollar industry. However, only 2% of the people that obtain the education will put it into application. Real estate is a team sport. One cannot do this sport on their own based upon my experience.

So, I have developed the Real Estate and Beyond Network so people can just plug into the Network when investing in real estate. I have developed a group of professionals that serve to be in their industry. Please visit my web site at www.DeliaTeam.com to view The Network. Now, there are several ways to lose money in real estate. I would like to go over the following points on ways to lose money if one is not working with a real estate investment expert such as myself.

1. Too much leverage-All the books tell people to use Other People's Money or put down as little as possible. It cost money to use OPM method. If one does not have the proper reserves, then one can easily get into trouble really fast. One needs money to invest in real estate.
2. Common Sense-One must use their common sense when investing in real estate. If it is too good to be true, then listen to the inner voice. I encourage people to ask a lot of questions when it comes to each real estate deal. Too many people are axious when it comes to pulling the trigger. Real estate investing is many times like playing poker or chess. One must be patient and in control at all times.
3. Partners-I see many people lose money because they had the wrong partner. Also, they had no llc formed to have ground rules in place. Pick your partner that you can trust. I would advise to find a parther other than a friend or family member. Do you want to lose a relationship over a bad real estate deal?
4. Due Diligence-Real estate investors do not perform proper due diligence on real estate deals. Many do not perform a home inspection before they purchase a home. Furthermore, they do not have an escrow agent run a title search on the property to see if there are any liens against the property. Investors do not like using real estate agents because they have to pay a commission. However, these are the people calling us to fix a problem.
5. More Education than Application-Many people want to spend money on the education and forget the application part. I have people in my office that have paid $20,000 and up to $50,000 on real estate education. They either have not done a deal or skipped a couple steps in the process when investing in real estate. I would encourage anyone to work with a professional realtor at all times.

Conslusion:

I am sure many of us can relate to the points mentioned above. I would encourage everyone one of us to put our best foot forward and continue to assist people to purchase real estate for their primary and investment needs. We continually need to be the light shining on the darkness. I wish the best for everyone this year during these times. We will overcome this one house at time being sold.

Should I Work With A Buyer's Agent? - A Seller's Agent? A Dual Agent?

You should understand from the beginning of your relationship with your real estate agent what type of relationship exists. In most states, real estate agents (both brokers and sales associates alike) are required by law to let consumers know whether they represent the buyer or the seller.

In the past, real estate agents represented the seller exclusively, whether the agent helped a seller to market and sell the home or helped a buyer find and purchase the home. In other words, agents were at one time legally bound to represent the seller in a residential real estate transaction. In that same scenario, the seller paid both the listing agent and the agent who brought the buyer.

However, in today's real estate market, you may find that you can choose between a wide variety of options for representation. If you want to sell a home, you can work with a "seller's agent". If you are purchasing a home, you can work with a subagent of the seller's agent and, in many areas, you can engage an exclusive "buyer's agent".

An additional situation in some states is dual agency. This type of agency exists when the buyer decides to have the seller's agent prepare the offer on the buyer's behalf. A buyer who elects this situation, and all additional parties to a transaction, should receive full disclosure of representation. In some states, dual agency also affects the real estate professional's fiduciary responsibilities to the seller.

Keep in mind that real estate laws differ from state to state and even from locale to locale. And within this framework of variety, laws can change. For more in-depth answers for your specific situation, talk with a knowledgeable real estate professional and ask about local practices. Be sure that you understand and are comfortable with the options involved when you engage the services of a real estate agent.