In this post, I’d like to talk about a conversation I had with a gentleman named John Schaub. John is located in Sarasota, Florida and has been successfully buying and selling real estate for several years.
Right out of college, John started as an agent, working for builders and developers in his area. In Florida at the time, you needed to be an agent for just one year before getting your brokers license, and he did just that. For about 15 minutes, John was Florida’s youngest broker. At one point, John had 13 agents working under him. However, he quickly realized he didn’t like the babysitting that came along with having so many agents. He realized he liked dealing with people directly, which is when he decided to start buying properties.
As an agent, broker, and investor, John has been very successful. During our conversation I was able to ask him some questions about how he has chosen to run his business, and what has made him so successful. Below are some of the items discussed in our call which can make agents and investors more productive.
Learning To Sell
One of the most important things an investor can do is learn how to sell. A lot of investors who have never had a license, who have never been an agent, who have never been in a position where they were a salesman, won’t know how to sell and close a transaction.
Learning The Closing Process
When John first started in the business, agents handled many of the tasks that attorneys and title companies do today. This gave them a better understanding of the closing process, insurance, and how everything came together in a transaction. This is an advantage of working with a big brokerage today. Most offer a comprehensive and structured training program.
Not Waiting To Buy
Real estate agents are just like many others out there who wait too long to plan for their retirement. If they were to begin buying for themselves earlier. Agents get wiser the longer they’re in the business, many wish they would have started buying sooner rather than later.
You Don’t Need 30 Houses
In reality, you can become successful by owning only two or three great properties. You don’t need 20 or 30 houses to retire comfortably. If you have a few properties that you have accumulated and paid off over time, it will very likely beat a traditional retirement plan. If you are in the real estate business you should do a pretty good job of making smart investment purchases.
Building Wealth One House at a Time
Building Wealth One House at a Time is the title of John’s book and it has been very helpful for people who want to invest in houses. He wrote the book off of his own experiences, helping people to make the highest rate of return possible. He shows people how they can retire early by simply buying one house per year. It’s not too late to start, even if you have been in the business for a long time.
Investor - Agent Relationships
When an agent is helping an investor to buy, they should be focused on the buyer’s criteria. Once a relationship is formed, a good agent will know exactly what the investor wants, call them as soon as something hits the market, and hopefully close right away, collecting a great commission for very little work.
Agents should always be open to working with investors because investors usually have money. In fact, an agent can really benefit from working with a number of investors, as opposed to trying to sell to a private buyer. When people are buying a home for themselves, they can be more picky, fickle, and emotional. Investors are purely looking at the numbers, making it a much easier sale for an agent.
When an investor is both an agent and a buyer, they can benefit no matter what the market is doing. They can buy for themselves or help other people who want to buy, thus collecting a commission.
Talking with Ben was a great pleasure. I learned a lot and was able to reaffirm my belief that agents and investors will see the greatest benefits when working together.
Here are some resources mentioned in this episode:
Building Wealth One House At A Time https://www.amazon.com/Building-Wealth-Updated-Expanded-Second/dp/1259643883/ref=dp_ob_title_bk
Ben Souchek - bensouchek.com
Home Downsizing Solutions - homedownsizingsolutions.com
EXP Realty - bensouchek.exprealty.careers