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Residential Agents listing multi-family and Commercial Property ARGHHH!

By Ben Edsall

Real Estate Broker/Owner with Turn-Key Properties LLC, Missouri and Kansas Real Estate

August 20, 2007 01:55 PM

I just have to rant a bit! I know I may sound condescending but you have no idea the frustration! this falls under do what you do and do it well.

Residential agents should stick to selling pretty kitchens to soccer moms and leave the other stuff to professionals who know what they are doing. Don't get me wrong; residential agents are great at what they do, but when it comes to investments stay home.

For weeks I had been driving by this duplex near my office with a for sale sign in the yard and the ugly multi-colored banners that you usually see at a seedy used car dealership. I can just imagine the tenants having their family over for the holidays and explaining the gaudy banners and the for sale sign in front of their home.

A client I had been working with was asking about property in my area. We had looked at several suburbs of Kansas City and he had heard me mention Raytown, Mo. So not being able to find anything that looked promising on the usual investment property sites I decided to search the local MLS for what Suzy home-seller had listed. I found the duplex listed under business opportunities in the MLS. I called the agent and asked for a pro-forma and some income/expense information....... After a long pause Suzy home-seller told me her husband would have to call me...

After speaking to her husband I still had no information to present to my client. I seriously pondered fabricating a pro-forma based on my knowledge of the neighborhood, but quickly thought of the liability if those projections were baseless. I still don't know what the rents are or what the lease terms are... and I never presented the property to my client!

I spend a small fortune with sites like loopnet, costar and xceligent, I have taken untold courses and done extensive research into learning what is needed for managing, selling and assisting buyers with investment property. Don't try this at home! If you sell pretty kitchens to soccer moms be happy, work hard at it and make a great living. If you can't tell me what a CAP Rate is then refer it to someone who knows what they are doing!

I know many of you feel that any agent can sell any property but you will be much more successful if you stick to what you know. I've been in multi-family and commercial for 22 years. If you refer a client to me I will keep your information and refer the pretty kitchens back to you.

Investors are about Cash-on-Cash Return, CAP Rates, ROI, NOI, IRR, MIRR, Future Value, etc. Home buying is an emotional experience for most. Investors lose money when they get emotional, carpet color and counter-top choices should be left to soccer moms, and residential agents are there to help them with that. I will gladly refer them to you. The last thing I want is an emotional transaction!

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Stephen Katz

Katz Mortgage Team, a branch of VanDyk Mortgage Corporation - Atlanta, GA

Branch Manager, CMPS

Informative post and eye-opening for many out there. Buying and selling commercial property is MUCH, MUCH more complicated than residential - same goes with lending on commercial properties.

Aug 20, 2007 02:20 PM

Darrel Quebedeaux

Evergreen Realty & Associates Inc. - Newport Coast, CA

Sounds to me like the person you are talking about should still be checking groceries at the local market. There is more to the term Realtor than having a license or paying dues to the NAR.

Aug 20, 2007 06:45 PM

David Nichols

The Nichols/Ersery Home Team, RE/MAX Heartland - Lee's Summit, MO

Leenulls Summit Real Estate

You "may sound condescending?" You are condescending! Just because someone specializes in residential home sales (Please get off the pretty kitchens and soccer moms comments) does'nt mean that they do not have the knowledge or skills needed to help a client buy or sell a multi unit property. I have sold several and like you, I had a lot to learn on the first couple, but I did my homework and figured it out. Yes, some investors are CHOOSING to work with the same trusted REALTOR that helped them with their SF investment homes. This DOES NOT mean they are not getting excellent service and advice. Many of these people are very satisfied with the results. So go ahead and "spend a small fortune with sites like loopnet, costar and xceligent." But dont get upset when your neighborhood REALTOR thinks outside the box and occasionaly becomes your competition. If they fail, it makes you look good, if not, then good for them for trying something new. There are plenty of commercial agents that dabble in residential sales when it is convienent for them. You need to relax. There is a wonderful business oppertunity for you if you embrace these risk takers... you just have to think outside the box. If I was a big time commercial agent and knew there was a residential agent floundering, I would call them and let them know that I was availalbe to give some freindly advice should they need it... I would call occasionaly to see how it was going. When/if things started to turn bad, I would offer a nice fat referal. Or you could complain about it and allienate every residential REALTOR that reads this and make sure you never get their referals... just my two cents. FYI, In Lee's Summit today there are 43 multi family units offered in the MLS... you just called each of those agents incompetent. Not a great way to make friends and influence people.

Aug 22, 2007 09:18 AM

Leslie Prest

Leslie Prest, Prest Realty, Sales and Rentals in Payson, AZ - Payson, AZ

Owner, Assoc. Broker, Prest Realty, Payson,

Please! I don't sell pretty kitchens (at least that's not ALL that either I or my Buyers look for), and not everybody who wants a "pretty kitchen" is a soccer Mom. Yes, you DO sound condescending. A duplex is NOT that much different from a single family residence. Now, if you were talking a large apt. complex you might be more justified.

Aug 23, 2007 05:24 AM

David Nichols

The Nichols/Ersery Home Team, RE/MAX Heartland - Lee's Summit, MO

Leenulls Summit Real Estate

I really think that Ben is somewhat disingenuous here. I visited his website and he clearly says that he helps with residential homes. In fact, if you look at his available properties, he list mainly residential. Sure, they may have tenants in some or most of them, but they are normal residential homes in normal residential communities.

Aug 25, 2007 06:11 AM

Ben Edsall

Turn-Key Properties LLC, Missouri and Kansas Real Estate - Kansas City, MO

We have not one SFR that is not, or was not occupied by a renter. We do have hundreds of rental homes for lease. We frequently list homes for sale and for rent often after they have been listed by someone else and had not sold. We also list homes as Rent To Own or Lease Purchase options.

Gee, David I appreciate the web site traffic. But your obsession with this post is puzzling. The Gentleman doth protest too much, methinks.

Aug 25, 2007 06:53 AM

David Nichols

The Nichols/Ersery Home Team, RE/MAX Heartland - Lee's Summit, MO

Leenulls Summit Real Estate

Ben,

I would not say it is an obsession. I simply commented on your post and after a few days, came back to have a second look and see what others thought of what the two of us wrote. I honesty thought your original post was commical in that you were offending your fellow REALTOR in one breath, then asking them for referals the next. Im sure you are great at what you do. It is just my opinion that you were not thinking clearly when you wrote the post. Then to think that it would not get a negative reaction... c'mon Ben, you are smarter than that.

The point I was making in the second post was that the properties you offer are mostly residential SFH and that in NO WAY is a commercial agent only type of listings. In fact, one could easily make the argument that commercial REALTORS should stay out of residential homes period. The fact that they are currently rented or were once rented is irrelevent.

The fact that you list some homes after another REALTOR failed is NO BIG DEAL. We all do that. You and I both know that this market is challenging at times even for us experienced pros. The number of homes that are sold on the 2nd or 3rd REALTOR is very high and rising almost daily. The inventory here is rising at the same time prices are falling. Homes, both investment and owner occupied, are staying on the market longer. It is no wonder that some REALTORS are failing.

Good luck and keep selling.

David

Aug 26, 2007 06:12 AM