{"id":1553,"date":"2007-06-19T07:22:38","date_gmt":"2007-06-19T14:22:38","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=1553"},"modified":"2007-06-19T07:22:38","modified_gmt":"2007-06-19T14:22:38","slug":"status-quo-real-estate-investors-dont-make-real-money","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1553\/status-quo-real-estate-investors-dont-make-real-money\/","title":{"rendered":"Status Quo Real Estate Investors Don’t Make Real Money"},"content":{"rendered":"

I have never been a huge fan of the status quo. While I have some appreciation for the mundane, I would rather blaze my own trail than do things as they have always been done. Interestingly enough, this really comes in handy when approaching investment properties. Doing what makes sense to me may not be the status quo, but it makes me feel comfortable.<\/p>\n

Recently, I was looking to close a deal on a 32 unit apartment complex. When asked by my agent how many of the units I wanted to look at, I remarked, “Uh, all of them.” He seemed taken aback by this, and then mentioned that taking a sampling of the units was the status quo. Perhaps looking at five or ten and then extrapolating what the other units look like is a tremendous timesaver. Lucky for me I had all the time in the world. <\/p>\n

Interestingly enough all but four units actually looked good, but those four units looked really bad and had a material effect on my offer and the amount of concession I asked for. Looking at all the units would have saved me about $8,000 had I closed this deal. Even as an investment banker, I cant make $8,000 for three hours worth of work.<\/p>\n

I will also take this brief interlude to point out the inherent conflict between realtor and investor. That extra two hours actually cost my realtor about $380 (3.5% x $8,000), plus two hours of actual work he could have done securing additional deals. Clearly the status quo worked in his favor. I don’t mean to suggest that is why he mentioned it, but I do mean to suggest that it is harder for him to work in my best interest when our incentives don’t align.<\/p>\n

As investors it is important to remember that a deal and all of its components must make sense to you. While the status quo is surely there for a reason, it may not be in your best interest to follow the status quo. Many first time investors or investors who are unsure of themselves fall back on Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

I have never been a huge fan of the status quo. While I have some appreciation for the mundane, I would rather blaze my own trail than do things as they have always been done. Interestingly enough, this really comes in handy when approaching investment properties. Doing what makes sense to me may not be […]<\/p>\n","protected":false},"author":16,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,2,8,5],"tags":[],"class_list":{"0":"post-1553","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-blogging","7":"category-general","8":"category-investment","9":"category-real-estate","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":9169,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9169\/just-had-to-share-this\/","url_meta":{"origin":1553,"position":0},"title":"Just had to share this….","author":"John Rowles","date":"July 15, 2009","format":false,"excerpt":"I was doing some research today and came across an article on Realtor.org from 12-01-2006 about The Top 25 Most Influential Thought Leaders in Real Estate. After a list of 25\u00a0 builders of the status quo, they had a runner-up list of 15. Robert Schiller made that list, here is\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2208,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2208\/a-consumers-guide-to-the-divorced-real-estate-commission-undermining-the-arguments-in-support-of-the-status-quo\/","url_meta":{"origin":1553,"position":1},"title":"A consumer’s guide to the divorced real estate commission: Undermining the arguments in support of the status quo","author":"Greg Swann","date":"November 11, 2007","format":false,"excerpt":"Part V: Why arguments for the current method of compensating real estate agents and against divorcing the real estate commissions must fail As I write this, the National Association of Realtors is preparing for its annual convention, to be held this year in America's playground, Las Vegas, Nevada. This year\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7197,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7197\/dual-agency-debated-outside-of-the-echo-chamber\/","url_meta":{"origin":1553,"position":2},"title":"Dual Agency Debated Outside of the Echo Chamber","author":"John Rowles","date":"February 27, 2009","format":false,"excerpt":"Google News plopped a link to a Blog post on SFGate.com (The San Francisco Chronicle's Web site) about dual agency in front of me today. It's always interesting to see a discussion about what Greg calls \"...the insane way we compensate buyer\u2019s agents in the residential real estate market\" in\u2026","rel":"","context":"In "Carnival of Real Estate"","block_context":{"text":"Carnival of Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/carnival-of-real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1456,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1456\/like-a-virgin\/","url_meta":{"origin":1553,"position":3},"title":"Like a Virgin","author":"Jeff Kempe","date":"May 21, 2007","format":false,"excerpt":"So I've spent the last hour trying to navigate Word Press -- I'm going to bet it's much easier than I'm making it -- have written a terribly serious post on the allegorical link between Nordstrom and real estate, and decided that's a really inelegant way to introduce myself. Yes,\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10381,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10381\/the-end-of-the-mls-as-we-know-it-part-546\/","url_meta":{"origin":1553,"position":4},"title":"The end of the MLS as we know it? (Part: 546)","author":"John Rowles","date":"November 23, 2009","format":false,"excerpt":"A few of the comments on my last post about the moves Google seems to be making in the direction of a more robust National Real Estate search have focused on what this means for MLS. The consensus (hope?) is that Google's move in that direction, as well as RPR,\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8471,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8471\/nothin-new-under-the-sun-especially-if-im-involved\/","url_meta":{"origin":1553,"position":5},"title":"Nothin’ New Under The Sun — Especially If I’m Involved","author":"Jeff Brown","date":"May 18, 2009","format":false,"excerpt":"I learned early on in my career I had no problem whatsoever taking others' ideas and running with 'em like a thief out of a 7\/11 carrying a paper bag full of ones and fives. I'm BawldJapan -- I can take your idea, tweak it for my uses, and most\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1553","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=1553"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1553\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=1553"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=1553"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=1553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}