Millionaire Real Estate Investing with Jim Pellerin

Episode #61 - You Need To Seek Professional Help When Investing In Real Estate

July 14, 2020

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I hear a lot from people about trying to get started in real estate and they are trying to save money. So, they are trying to do everything themselves. πŸ‘¨πŸ πŸ’°

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When I first started, I remember I was doing my own offers. I was doing my own contracts. I was even doing my own loan agreements. All of my own agreements. I drew them up. πŸ‘¨β€πŸ’ΌπŸ€

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So, here is my first big recommendation … 

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when getting started in real estate you always want to use professionals. πŸ‘©β€πŸŽ“πŸ‘¨β€πŸŽ“

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Professionals are going to protect you legally. They're going to protect you financially. They're going to get the job done, right? They're going to take up less of your time because they're doing it right. Don't think that you're saving money by trying to draw up your own contracts. You're going to get in trouble. πŸ‘¨β€πŸŽ“πŸ’²πŸ“œ

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So, I recommend using professionals. And when I say professionals, I'm also talking about realtors.

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People try to avoid realtors. I saw a post from a guy in this forum the other day. He was asking β€œhow could I buy a property from somebody that's listing it without having to pay the realtor fees”? And he's purchasing the property. So it wasn't him that was paying the realtor fees. He was trying to figure out a way to screw this realtor who had listed the property. I told him, I said β€œlisten, buddy … you're not the one paying for the realtor fees. Just let the realtor do their job.” πŸ‘¨β€πŸ’ΌπŸ πŸ’°

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And his thought, was, if he didn't have a realtor, he could negotiate with the listing realtor to get a reduction in price or with the seller. I mean, the seller hired a realtor. They are willing to pay that 5% or 6%, whatever it is. You as a purchaser and don't need to pay those costs.πŸ‘¨β€πŸ’ΌπŸ—£οΈπŸ’²

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When you are listing a property, you want to make sure you're going to use a realtor. People boast all the time, β€œI listed my property. I sold it in one week”. Well, to me that tells me that they are in a very hot market or they listed their property too low. There have been studies showing that private sales actually lose money compared to listing with the professionals because they don't know what they're doing. They don't know the comparables. They don't know the right price to ask. They ended up holding the property for a lot longer. So always use a realtor. πŸ“œπŸ β³πŸ’ΈπŸ‘¨β€πŸ’Ό

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Do the same thing with a mortgage broker … you always want to use a mortgage broker, because you want to get the right financing. Do not go directly to the bank. They will only have access to their products. πŸ§‘β€πŸ’ΌπŸ’°πŸ¦

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And obviously, you want to use a lawyer when doing the transactions. πŸ‘¨β€βš–οΈπŸ¦

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So, when investing in real estate, make sure you are using the right people. Do not try to do everything yourself. Work with the professionals. πŸ”ŽπŸ πŸ‘¨β€πŸ’ΌπŸ‘¨β€πŸŽ“

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