I have one rule for Real Estate Investors. It should be easy to understand. This gauges shows how well I do my job because I only bet paid on commission based on the final sale price. I make the least amount of money when I find the investor the best value and get it at the lowest price. I make the most amount of money when I sell the remodeled property for the best market price.
I explain this to all my investors. You see, I make very little money when investors buy a foreclosure ---- where most purchases are below $100,000, almost every purchase is below $50,000. Think of all the time we spent looking at properties. After we find a foreclosed house to bid on, I often have to put in more time than a regular purchase from a private seller. Foreclosed properties require a host of extra forms. Then there is competition.... we may be outbid. When we finally get an accepted offer, the agencies selling foreclosed properties have a tendency of ---- well making extra work for Real Estate Agents. The hours accumulate quickly. The few hundred dollars of commission I receive makes it a poor investment of my time. To make up the loss, I have to rely on and trust the Investor will List the property with me to sell. That's where I make my money, even after offering them a discount for their return business.