Why Every Agent Should Be Like Mike

The true measure of a great real estate agent comes not from how many sales he closes, but from how many he doesn't. Now before the you-know-what hits the proverbial fan let me explain.

I have been contemplating investing in my backyard for sometime now. The area is fairly new and there is an abundance of inventory. As a matter of fact there are plenty of homes that have been listed for more than 100 days. Though I have been investing since 1998, I have never invested in a down market and I figured this would be a great opportunity to get my feet wet.

After browsing through several MLS's, I found a great property that had been taken back by the lender. It needed minor cosmetic work and I ran the numbers and called my agent to discuss. Being an investor himself, he asked me what my goal was for this particular property.

So I told him.

(Insert Benny Hill theme music here)

My goal was to buy using a hard money loan. There would be no payments for the first 6 months, so if purchased correctly, all holding costs and selling costs would be absorbed by the loan. My offer was to be nearly 37% below asking price. I would then do the minor cosmetic work and put it back on the market at a bargain price.

I was already counting the money, when my plan was stopped in its tracks. My agent Mike, who has specialized in REO, since the 1980's, uttered two simple words,

"Be patient."


He shared with me information on the market forecast for my particular area, which is predicted to be hit hard. (Heck, I've already seen evidence of that right next door.) He adviced to hold off on flipping for now and concentrate on cash-flow whether it be from lease-options or buying under market.He had seen this type of market in Texas before and now was not the time to make quick decisions.

Great advice from a great agent.


This is the type of agent you should strive to become. Don't look for the quick commission. Become a trusted advisor and as your investor clients flourish, so will you.

(Insert Benny Hill theme music again and this time turn it up loud)

And by the way, I forgot to mention that Mike called the listing agent on the property anyway and was informed that the bank had turned down an offer that came in $10,000 under listing price. In this market, that's crazy.

Happy selling.