Why You Shouldn’t Trust Your Realtor

What’s up guys, in today’s video, I’m going to share with you why, in my opinion, you absolutely should not trust your realtor before any of you guys get offended by this, if you are a realtor yourself, especially if you’re my realtor, or if you just work with a realtor that’s a family member or a friend, something like that, before you get offended, hear me out, there’s a few different points that I want to make in this video that I think will shed a lot of light on what I’m saying. And ultimately, the reason that I wanted to make this video is because I’ve talked to a number of people, especially recently, who I think are making a really, really big mistake in their real estate and short term rental investing by just blindly following the advice of their realtor and getting into potentially very, very bad deals. So here’s where I’m coming from with this advice. Number one, I think it needs to be addressed that realtors are supposed to have a fiduciary responsibility to the clients that they represent. But in reality, the incentives just are not aligned for that to actually be the case in practice. For any of you who don’t know, a fiduciary responsibility means that that person is supposed to always act in the financial best interest of their clients. Now, that’s all well and good to say. And I do believe that some realtors are very ethical, and do take that responsibility seriously. But let’s not lie to ourselves, there’s a whole bunch of realtors out there that first off don’t even know they have a fiduciary responsibility. And a lot of them that really don’t even know what that actually means. And certainly don’t take that very seriously. And let’s just call a spade a spade, a realtor makes money when they sell you a property. And so again, there are lots of really great realtors out there who actually think long term and you want to make sure that you get the best possible deal on a property, so they can keep doing business with you in the future. But there are also a lot of realtors out there that think very, very short term, and all they want to do is close the deal. And they see a really big paycheck at the end of it, and they’re gonna get you to try to try to get you to buy any deal just so they can get that commission check. If you deny that that’s the case, then you’re either ignorant or lying, right? There are realtors out there that I don’t care how ethical you are a lot of people, if they’re really struggling for money, and they see an opportunity to make a 1020 $30,000 payday by selling a property, they’re going to jump on that even if it might not be in the financial best interest of their client, it’s really, really hard to have a true financial responsibility for your, for your clients to your fiduciary responsibility to your client, when the incentives are completely misaligned. With that objective, their financial incentive is to get you to buy a property not to get you to buy the best property, that’s gonna be the best long term investment for you. So you just have to take that in mind. Now with that out of the way, like I said before, there are some really, really ethical realtors out there just like anything, they’re good, and they’re bad. And so what I’m saying is that you really shouldn’t even work with the unethical or bad realtors. And you do need to be very selective. But then I hear a lot of people say, Well, no, I know this person, I trust them, their family, their friend, and so that I know that they’re acting in my best interest, they wouldn’t try to get me into a deal just to get a commission check. And that’s great. That’s the bare minimum of what you should expect from a realtor. But that’s not enough for you to be able to say, Look, I’m just gonna go and trust them blindly. Because the reality is, even though a realtor may have really, really good intentions, there’s a totally different question you have to ask yourself with respect to do they actually have the skills, the expertise to know how to back up those really great intentions. And so when you’re looking at investing in a short term rental property, you have to ask yourself, does that investor actually have the right expertise, the right skills, the right tools to be able to judge whether this property would be good for short term rental or not? Now, I will say I always ask my realtor for their input. I asked them when they go buy the property is there anything they see that might be wrong with the property and potential issues? Are the neighbours going to be unfriendly things like that. And it’s incredibly helpful to have a really great realtor. That’s why I refer my realtor to as many people as possible that she can help because she’s shown that she’s just so so trustworthy, does such a great job, and is really, really helpful with helping to make the right decision. But keep in mind that I’m saying she’s helpful in making the right decision means she’s helping me to make the right decision not making it for me, because ultimately, your realtor probably doesn’t have the level of expertise to be able to say how much a property is going to do as a short term rental property. They’re not going to have that expertise unless they’ve actually invested in short term rental properties themselves have super expensive acknowledge and experience in the industry. You now have access to market data, those sorts of things. And so as much as they can hypothesise as to whether or not you would be interested in coming there, they can’t actually articulate very effectively whether you’re going to get a good cash on cash. If return on that property, whether the ROI is actually going to be there by overlaying, purchase price to revenue, because they just don’t know what the revenue is actually going to be. And a lot of the times I see Realtors speculating on this, and that’s a really, really dangerous position to be in, I see a lot of realtors speculating as to how well the property could do as a short term rental, when really they have no business doing that, because they just don’t have the expertise, or the experience and the know how to be able to form actual accurate projections. They also oftentimes don’t have any of the tools to be able to formulate a downside projection. They also don’t know your unique experience your unique situation as much as you do. And so they actually shouldn’t be the one making those financial decisions for you, ultimately, even if they do, like I’ve talked to someone last week who said, No, my realtor is someone I trust. There’s someone that has their own portfolio of short term rental properties, they invested in themselves, and they’re advising me, I’m just buying based off of their advice. Well, that’s all well and good. And that’s actually a really, really great realtor by the sounds of it. So I think it’s amazing to be working with a realtor that has that kind of experience. But the reality is, guys just want to take a quick break here to say that for those of you watching, who want to build cash flow and long term wealth, by purchasing Airbnb ease and short term rental properties, there’s a link in the description right down below for a free training that will walk you through my exact strategy for investing successfully in Airbnb ease. Now, if you’re not ready to actually buy properties, and you want to get started managing other people’s properties on Airbnb the same way I got started and build a full time income managing other people’s properties, there’s actually another free training linked in the description down below as well, that’ll be a really great fit for you. So whether you want to invest in short term rental properties, and actually build amazing cash flow and long term wealth by acquiring the assets, buying the properties themselves, or you’re looking to earn a full time income, managing other people’s properties on Airbnb, we’ve got some awesome trainings that are linked in the description down below, that’ll definitely help you out. When you sign up for the trainings, we’re also going to send you a few other tools and resources completely for free just to help you get started. Again, the links to sign up are in the description down below. And both trainings and all the tools are completely free. So make sure to register for the trainings, links in the description down below.

But the reality is that they’re not the ones that know your situation inside and out as well as you do. And ultimately, as an investor, in order to make the right decisions with your money, you need to know the actual returns, you need to know that data, you need to become an expert in analysing properties and deciding where your money goes. Because without that, you’re just blindly trusting someone, if you place all your faith in that person’s hands, and it turns out that they’re guiding you wrong, there’s gonna be no one to blame but yourself for having trusted them in the first place just blindly. And so it’s really important as an investor to really hold on to that analysis and due diligence period, I recommend this to even the largest scale investors that we work with, I found that even if they’re, you know, managing Million Dollar, multi multimillion dollar portfolios, they’re still keeping that ultimate decision making with themselves or keeping that internal because they know that bad investments are going to crumble their whole portfolio. And so making the right key decisions is ultimately the most important piece of the investing and portfolio building process. So it’s again, just super, super important that number one, you find a realtor that you can trust that actually has your best interest at heart that isn’t just commission hungry, and that actually knows what they’re talking about. But number two, it’s really, really important that you work with unbiased third parties who can actually help you to make the right decisions and aren’t financially incentivized to get you into the wrong investments. And that have, most importantly, the expertise, they know how the knowledge in order to actually guide you appropriately. That’s why when we work with investors, we never take a percentage of the upside on their deals. Because we don’t want there to be any misalignment of incentives, we don’t want to have a conflict of interest. We also again, our experts, true experts in the short term rental space is what we have become incredibly good at and become the best in the world that we have access to 10s of 1000s of dollars worth of data that we pay for every single year so that we can make these decisions based on that data, not just based on speculation. And so it’s really important to have someone like that have people like that in your corner helping you to make the right decisions, so that you’re not being led astray. And so that you are ultimately in the driver’s seat of your portfolio and your wealth. Because let’s face it, at the end of your your retirement or portfolio building, once you get the time to be living off this income, you’re not going to be very happy if your realtor led you astray. And it’s really not going to be any consolation to say well they told me to buy their own property. The end of the day. It’s important that you do this successfully for your own goals for your own objectives for your own wealth building for that intergenerational wealth. I know a lot of people are after if you want to have someone to something to really pass along. If you want to make all the work you’re doing worthwhile and actually have it mean something, then it’s really, really important that you do it right and you don’t make any of these key mistakes. So I just wanted to make this video because I’ve seen too many people just falling into this trap of trusting other people trusting their realtor to make these decisions for them, as opposed to getting in the driver’s seat themselves. And so hopefully this video helps you hopefully it helps you to avoid some mistakes and make the right decisions with your investing. As always, if you want to learn more from us, there’s links in description down below for how we can work together and help you and be in your corner. And as always, as well. Let me know your thoughts in the comment section down below. Hit like on the video if you liked it, if you enjoyed it, if you got value from it, it really does help me out with growing this channel and getting these videos in front of more people. And last but not least, if you’re not yet subscribed, make sure you hit that subscribe button to stay up to date with the two new videos we post every single week on the channel. With all that said, thank you so much for watching, and I’ll see you in the next video.