The Real Estate Service Industry: A Critical Look

https://www.youtube.com/watch?v=5pUorESDquw Tired of real estate agents, brokers, and title companies taking a huge cut of your profits? Steven Jack Butala and Jill K DeWit  expose the often-overlooked world of real estate service providers and how they impact your bottom line. They break down why so many people get stuck in the due diligence phase and offer their unique perspective on title insurance. Plus, learn how technology is disrupting the industry and why it might be time to ditch those real estate agents for good. Listen to the podcast here The Real Estate Service Industry: A Critical Look Real Estate Agents And The Service IndustryThis is episode number 2082. The topic we're going to talk about is real estate agents and the real estate service industry as one of your career options in real estate with vigor. I love talking about real estate agents.Calm down. I know you’re excited.We've been talking about your career choices in real estate. Now, we're going to talk about the service industry in general and all the career choices and the people who are involved in completing real estate deals, managing real estate after it's been rented out, and all kinds of options for you where you can add some value. All kidding aside, people who are good at it add value to the people who are the stakeholders.Here's the thing about this. All the people in the service industry have chosen, probably subconsciously most of them, to not be stakeholders, shareholders, or owners/risk takers. It does not take any real money compared to being an owner to be a real estate agent, mortgage broker, lender, title agent, property manager, or janitor. It takes you showing up with a resume saying, “Please, hire me. Give me your money. I would like to stand and get in the way of you effectively doing a real estate deal unless you perceive my participation with some value,” which is almost never the case. Unless you're a janitor. We all appreciate you. How can we do a show about real estate agents without ranting?It's funny. “Where are my choices, Mom and Dad? Am I going to be a janitor or a real estate agent?” “Janitor.” It is good. I'm not pooh-poohing it. It's solid.Here's an anecdotal story before we take the question. I lived across the street. We were young. We had babies. All of us in this one street raised our kids for the first few years of our lives. One of the guys across the street was a mortgage broker. I love this guy. We had a great relationship. We were young dads. We were out playing with the kids when everybody got home all the time. At some point, we found out what each other does for a living.He told me all about being a mortgage broker over beer and the reality of it. He was always trying to get us a better rate but what he was doing was finding a bank that would pay him the most to originate a loan. He was getting in the way of my effective success, whether it was a primary residence or anything. In my opinion, if you talk to a property manager and you have a bunch of apartments, they're going to tell you why they're the best in the industry to manage those properties.Fraud is rampant with rental property managers because they're collecting the rent. Imagine you have a 100-unit apartment building and it's $2,000 a unit. They’re collecting all this revenue for you and convincing you the whole time that they are necessary because, without them, you could never collect that amount of rent. It's a full-time job and maybe they're right. They convince you to collect the rent. They have control of the money.They tell you who paid and didn't pay.Every month, it’s hundreds of thousands of dollars. It takes a very special type of person who has to keep their hands out of that pot and correctly account for all of it. I'll leave that at that.Thank you.Each day on the show, we answer a question from our Land Academy member discord forum and take a deep dive into land-related topics by popular request.