#5 - You Can Only Win This Race, If You Have...

... People! That's right - People "...Soilent Green is..." <- I couldn't help my self, sorry :(

Yes, I wish I had known this fifth thing prior to leaving my full-time job.

The entire real estate industry works because of people. Not just any people, but specifically, true independent contractors who understand (and accept the fact) that if the deal does not close, they don't get paid.

This one mind-set makes Real Estate unlike any other industry or profession. Which is also why it is unlikely that in the future any bank, or one real estate firm will ever dominate the residential real estate business.

If you had a front row seat for the "Dot Com Meltdown", you have heard all the pitches about the real estate industry being a "dinosaur" and all of the hoopla about "market inefficiencies because of fragmentation" and the "need for consolidation", blah, blah, blah...

The truth of the matter is that the real estate industry works just fine like it is, independent contractors, working towards the same objective, getting the deal closed, and this is totally unlike any other business. In most other industries, people get paid every day for just "showing up". Even in the stock market, which use to be totally dominated by the commissioned broker/agent, people really do not care if your transaction closes - they get paid whether you're happy or not.

Real estate is just the opposite. If the deal does not close, commissions do not get paid and vendors and other support folks do not get invited back for the next deal.

So, what does this have to do with you....?

Real Estate people (after the newness wears off) tend to not work for money, they work for lifestyle. Meaning, if you really tick them off, don't be surprised if you (as the client) get "Fired!" Initially, all new agents want as many clients as they can get their hands on, then over time as they get really good at what they do, or quit, they realize that they do not have to work with "everybody" to make a decent living, and soon they go about the business of deciding who they will work with, and who they will not. The same is true of good title companies etc. Money is not the object. The real estate biz is very pure. Everyone pays the same commission (meaning, what every the agreed to commission is by that particular seller) therefore, the broker/agent could really care less who shows up, but all things being equal, if there is someone they like to work with, guess who gets the call first on deals.

In most other industries there is a "pecking order", the hire you go, the more people do stuff for you because "you are the boss", even if your attitude stinks. In real estate there is also a pecking order, its called: doing business (that is repeat business) with people you like and trust. I have had many an agent and title officer go the extra mile for me, simply because I end every conversation with "Thank you" and begin each one with "Please". I had to train myself to do this, because I learned this lesson the hard way.

Coming out of "Corporate America", you learn to bully your way around. In fact in many corporate jobs (and military/government) you can not get things done any other way. But in making the transition to real estate investor, many people need to remember what is what like before they became a "big shot" and go back to their first grade manners. "Thank You and Please" is just the start.

If it has been a while since you ended every sentence with "Thank you", and started it with "Please", two thoughts:
1 - Let's start practicing now, and
2 - Pick up a copy of John Maxwell's Winning With People

Tell me what you think -> Please give me feedback at http://www.realinvestors.com and in the Forums look for Today's Blog Post: "Soilet Green Is People..."