Do you know what the real problem is with bribery? That it works. To our delight there are ways to use the principle of bribery and still remain within the limits of the law. It will still work.

My dad had a garage for a car electrician. For years the place was blown up. You had to literally navigate between vehicles to get to some height in the garage. I'm talking about a big place, not some 2 * 2 garage that contains 4 vehicles. Toilet vehicles per day.

Such a quantity of vehicles also means that it takes time to arrive and take care of everyone who enters the garage.

One of the clients in the garage was an accountant who would kill me if I remembered his name. Every time he would come to the garage he would give the practitioner who treated him a really high tip. So high that when he had just entered the garage all the workers would leave the vehicles they were handling and evacuate. Hopefully they will be the ones to take care of the car and get the tip. Needless to say, his vehicle is the one treated first.

As a kid, I used to learn about the magic of Uber Tipping. Not to give a tip, this is what everyone does, but to give a protected tip that sets you apart from the herd. That's the wisdom. Years later I also realized that there was also a smart economic consideration in this. The time the accountant spared waiting in the garage must have been worth more than the tip he gave.

Which brings us to the agents, wholesalers and commissions they demand / receive.

The US market is a free market, and these days it is also a sellers' market. That is, finding a deal in it is not a simple story. Prices are high, profit margins are low and competition is not easy and yet I read and hear here and there about entrepreneurs complaining about the commissions or price that agents or wholesalers ask for. So let's get some order.

Let's start with the fact that finding a deal is the whole story. Most of the story. No matter how much you think raising money, or renovating nicely or anything else or part of it is never equivalent to the real art of business: bringing a deal to the table. Finding a deal is always the bottleneck of real estate entrepreneurship and the starting point of it all. This fact makes those who bring deals a well from which we are partners. The one who brings a deal is the king, and the king can ask for whatever comes to him. Or her. Do not agree? Go find a deal for yourself and then we'll talk. Go find 10 and then you will really understand.

The reason this is what they are asking for stems from one thing: there will be someone to pay. This is the essence of a free market. If it's not you it's fine, just that it puts you at the end of the list.

The real question is why do you not pay. If the commission accumulates to an amount in which the transaction is not worthwhile then giving it up is not only a legitimate matter, but a business obligation. No rape deal work. Of course it is permissible and necessary to try to negotiate and reverse costs, but do not take anyway.

The second reason is more problematic. Still, and it is not clear why, entrepreneurs and investors are still preoccupied with how much the wholesaler or agent earns in the deal, so even if the numbers work they refuse to pay that or negotiate his share of the deal. This is a serious and double mistake.

Costs of a transaction deserve to be looked at as a complex cost. Let’s say a deal works if we buy it for $ 100, does it really matter if the owner asks for 90 and the agent 10 or the owner asked for 70 and the agent 30? 100 is 100. If the agent earns more, very well. He will be fully motivated to find the next deal. If I were to be the one to try to hurt his income somehow I feel it would not exactly enlighten me in a positive way.

But here I want to go a step further - what about the deal working at 110? The good guys will take it at 100 without arguing, the sages will offer the agent another $ 5000 commission beyond what he asked for. Why? $ 5000 is not a commission on the deal he brought, it is a down payment on the next deal. Future investment. Think, if the agent brings a really good deal to whom is he more likely to call? To the one who always tries to lower the commission, is it the one who pays what he asks for or is it the one who compliments him when possible?

Who would you like to be? The first to receive a call or the last? What would you want to be, the one who's in the speed dial of the Holeslayer or the one who's not keeping her number?

The problem is that you can not always pay more, but you can always pay. A good bottle of whiskey does not turn a good deal into a bad one so one can always bring one to a close. Or crate. The listing can be given to the agent after the renovation. One can help his wife promote her business which is not related at all. Sometimes just a phone call will make the difference.

As a matter of principle people have three things that are really interesting and important to them: health, livelihood and children. If you find a way to pardon them on one of these three issues for them you will earn credit points. A phone call to a sick agent to ask sent him much more than you think. This is just an example.

There are a million ways, but the idea is this: you will find a way to stand out, promote doing business together and not just wait for them to bring a deal, and promote yourself to the top of the list of favorite customers.

Successfully

* To all those who think I'm wrong: you are right !!! Keep going. It makes my life simpler. Appreciate it.

Link to the original post in the United States Real Estate Forum on Facebook - Works on a desktop computer (To view the post must be members approved for the forum)

The original responses to the post can not be read at the bottom of the current post page on the site or in the link to the post on Facebook and of course you are welcome to join the discussion

Do you know what the real problem is with bribery? That it works. To our delight there are ways to use the principle of bribery and still remain within the limits of the law. It will still work.

My dad had a garage for a car electrician. For years the place was blown up. You had to literally navigate between vehicles to get to some height in the garage. I'm talking about a big place, not some 2 * 2 garage that contains 4 vehicles. Toilet vehicles per day.

Such a quantity of vehicles also means that it takes time to arrive and take care of everyone who enters the garage.

One of the clients in the garage was an accountant who would kill me if I remembered his name. Every time he would come to the garage he would give the practitioner who treated him a really high tip. So high that when he had just entered the garage all the workers would leave the vehicles they were handling and evacuate. Hopefully they will be the ones to take care of the car and get the tip. Needless to say, his vehicle is the one treated first.

As a kid, I used to learn about the magic of Uber Tipping. Not to give a tip, this is what everyone does, but to give a protected tip that sets you apart from the herd. That's the wisdom. Years later I also realized that there was also a smart economic consideration in this. The time the accountant spared waiting in the garage must have been worth more than the tip he gave.

Which brings us to the agents, wholesalers and commissions they demand / receive.

The US market is a free market, and these days it is also a sellers' market. That is, finding a deal in it is not a simple story. Prices are high, profit margins are low and competition is not easy and yet I read and hear here and there about entrepreneurs complaining about the commissions or price that agents or wholesalers ask for. So let's get some order.

Let's start with the fact that finding a deal is the whole story. Most of the story. No matter how much you think raising money, or renovating nicely or anything else or part of it is never equivalent to the real art of business: bringing a deal to the table. Finding a deal is always the bottleneck of real estate entrepreneurship and the starting point of it all. This fact makes those who bring deals a well from which we are partners. The one who brings a deal is the king, and the king can ask for whatever comes to him. Or her. Do not agree? Go find a deal for yourself and then we'll talk. Go find 10 and then you will really understand.

The reason this is what they are asking for stems from one thing: there will be someone to pay. This is the essence of a free market. If it's not you it's fine, just that it puts you at the end of the list.

The real question is why do you not pay. If the commission accumulates to an amount in which the transaction is not worthwhile then giving it up is not only a legitimate matter, but a business obligation. No rape deal work. Of course it is permissible and necessary to try to negotiate and reverse costs, but do not take anyway.

The second reason is more problematic. Still, and it is not clear why, entrepreneurs and investors are still preoccupied with how much the wholesaler or agent earns in the deal, so even if the numbers work they refuse to pay that or negotiate his share of the deal. This is a serious and double mistake.

Costs of a transaction deserve to be looked at as a complex cost. Let’s say a deal works if we buy it for $ 100, does it really matter if the owner asks for 90 and the agent 10 or the owner asked for 70 and the agent 30? 100 is 100. If the agent earns more, very well. He will be fully motivated to find the next deal. If I were to be the one to try to hurt his income somehow I feel it would not exactly enlighten me in a positive way.

But here I want to go a step further - what about the deal working at 110? The good guys will take it at 100 without arguing, the sages will offer the agent another $ 5000 commission beyond what he asked for. Why? $ 5000 is not a commission on the deal he brought, it is a down payment on the next deal. Future investment. Think, if the agent brings a really good deal to whom is he more likely to call? To the one who always tries to lower the commission, is it the one who pays what he asks for or is it the one who compliments him when possible?

Who would you like to be? The first to receive a call or the last? What would you want to be, the one who's in the speed dial of the Holeslayer or the one who's not keeping her number?

The problem is that you can not always pay more, but you can always pay. A good bottle of whiskey does not turn a good deal into a bad one so one can always bring one to a close. Or crate. The listing can be given to the agent after the renovation. One can help his wife promote her business which is not related at all. Sometimes just a phone call will make the difference.

As a matter of principle people have three things that are really interesting and important to them: health, livelihood and children. If you find a way to pardon them on one of these three issues for them you will earn credit points. A phone call to a sick agent to ask sent him much more than you think. This is just an example.

There are a million ways, but the idea is this: you will find a way to stand out, promote doing business together and not just wait for them to bring a deal, and promote yourself to the top of the list of favorite customers.

Successfully

* To all those who think I'm wrong: you are right !!! Keep going. It makes my life simpler. Appreciate it.

Link to the original post in the United States Real Estate Forum on Facebook - Works on a desktop computer (To view the post must be members approved for the forum)

The original responses to the post can not be read at the bottom of the current post page on the site or in the link to the post on Facebook and of course you are welcome to join the discussion