Thanks for your reply Jim
See we can discuss the ethics of transactions peacefully
However...RE PM's - this is very harsh ... !!!
A distinction can be made though between PM + other services providers VS investor as service provider...
As:
Customer often fully aware of and educated on nature of transaction when hiring a PM - Would this apply to most people involved in selling there house with aid?
Customer often being charged bill rate for services lower than there hourly pay - Compare to bill rate often over $1000 per hour for direct work being done by real estate investor in those situations...
ETC...
Would you agree?
[quote user=JimWhitelaw][quote user=housingrental] With just a little more knowledge - or a few hours talking with a few mortgages brokers or private lenders - they could have done the transaction among themselves - and both Tenant and Home seller would be MUCH BETTER OFF
What you state is true, however:
1) Knowledge has value.
2) Time has value.
3) Convenience has value.
4) Confidence has value.
It's possible that the tenant buyers and the sellers could have put this together themselves and saved money, but realistically, they probably wouldn't. Without Ben in the middle brokering the transaction, educating both parties and doing the "legwork", there's little chance it would have come together and neither of those parties would have what they want.
The same could be said of other related fields, like say, property management (just pulling random ideas from a hat) . Many real estate investors choose to utilize the services of a property manager, even though they could make more money and possibly offer more competitive rents if they got educated and did all their management themselves and dealt directly with their own tenants. Perhaps both investor and tenant would be much better off without the property manager in the middle of the transaction. So why do investors employ PM's? Is it possible that they provide knowledge, time, convenience, confidence that the investor doesn't have and is willing to pay for?