Should I use a realtor to buy my house or should I just do it myself?
It’s all about cash flow
As an investor myself, it’s all about cash flow. It’s all about numbers. This is a business, and you want to look at every penny, every dollar, and see does it make sense to spend that money, or should I keep that money and do the work myself.
How valuable is your time?
Time is the one thing you never get back. We all only have twenty-four hours in the day, no more no less. You have to ask yourself: how are you best utilizing that time?
For example: if you want to buy a house, you want to buy a rental property, is your time worth driving around, going, looking at deals, looking into windows, trying to negotiate, doing things that may not be the best use of your time. It may not be the best thing. You may not even know what is a good deal and what is a bad deal.
Leveraging people and your time
To me, part of being successful is leveraging people and leveraging your time. I think people are very good at leveraging people. They understand that you get a loan. You’re going to use a bank. You’re going to go from A to B. You’re going to use a car to get there. That’s leverage. They also are good at leveraging money, meaning you’re going to buy a house; you’re probably going to get a loan and leverage the rest of the amount. But people have a hard time understanding the value of time and leveraging their time.
I feel that there’s probably better things that you can do with your life than scouring things you’re not too familiar with and wondering if you’re doing it right or doing it wrong. If you have the right people on your team, they are actually invested in your success then I think you will have a lot better outcome and a better result as opposed to doing it on your own and trying to figure it out and trying to wonder. You have to realize that this is a team effort. It’s not a singular effort.
Realtors have access to a lot of things that you don’t have access to.
They see things that you don’t see. You want to think about those things as to how you can best utilize and leverage time of agents. I would be very cautious when you do use an agent: set the proper expectations, make sure that you are on the same page with what you expect of them and what they can expect of you. In that way, you have clear understanding. The rules of the game are set in the beginning so that you know exactly what the outcome will be. I think setting expectations is important, number one. Number two, understanding the power of leverage and leveraging your time.
I think agents can be great. They have access to a lot of things. They’ve got experience. They know what they’re doing. You may buy one house, and maybe not buy another one; they may help investors buy twenty houses in a month. This is just something they do more often than you do, so they’re going to see things that you don’t normally see. They’re going to have access to vendors you’re not going to have access with.
These are things in the Dallas area we can help you with. We have agents that work for us. They can help you get started if you want some knowledge as to how to start buying properties and how to get educated. Give us a call at 214-499-9813.
Steve Rozenberg with Empire Industries Property Management and Realty Services