The Barasch Group, Inc is a Real Estate company located in Sherman Oaks California. Its founder and President/ CEO is Michael S. Barasch. Michael is consistently ranked in the top one percent of all real estate agents nationwide. The real estate insider has been awarded numerous prestigious accolades from many of the most respected companies in the Real Estate industry – including Century-21, Coldwell Banker, Re/Max and Rodeo Realty.
Throughout his career, Michael has successfully negotiated approximately 1000 real estate purchases to date. His average annual production is in excess of $50,000,000. He is constantly evolving, learning and growing with respect to his knowledge base in order to provide his clients with the best advice and guidance.
Michael Barasch specializes in Residential Home Sales, New Construction, Multi-residential, and Investment Properties throughout the greater Los Angeles area. The real estate expert recently sat down with us here at LandonBuford.com to discuss his success in the industry.
How did you decide to get into the real estate business?
Being a former lead guitar player and songwriter in the music industry, I came more observant in with Judaism and my life as a musician was not going to work anymore. My mother was a broker, and I had an economic background from high school and I surveyed the market at the time and it turned out to be a great decision.
What is some advice you would share with someone looking to get into the real estate industry?
I would advise that anyone looking to get into real estate that they have a background in business. There have been a lot of agents that take their lessons and think they understand the business, but it turns out that it is not true. So, if I was going to advise anyone that is serious about pursuing a career in this business, understand subjects like stocks and bonds. So that they can give better advice and counsel to their clients. The difference between me and my competition is I teach my clients how to understand the process, and how to recognize the math as well as, comprehending what an offer is effective when it is presented. Before they start looking to invest in real estate. Take their craft seriously, and concentrate on the educational aspects of the business. You might want to intern with someone in the industry before you receive your license.
Can you suggest books or courses that you think are helpful to some wanted to learn about the real estate business?
If I was going to advise someone which books or the type of education to seek. I would consider how to prepare loans and understand the mortgage industry. This is critical in the real estate. I would recommend a book by Stephen Covey called “The 7 Habits of Highly Effective People.” This book is very deceptive, the title may make you think the book is about time management and good habits. However, it is more about starting with a goal in mind, and one of the steps is “First seek to understand, then to be understood.” Focus on the golden goose, not the golden egg. Most of the individuals in the business are focused on the commission and don’t think about the client. The client is your golden goose the commission check is your golden egg and they run out. So, focus on the needs of your clients and not on the commission check, because if you service your clients properly, they will recommend more business for you in the long run. If you understand the mortgage industry, the guidelines of the loan process, and comprehend economics, you will have a leg up on your competition.
What investment advice would you give to someone in their early thirties looking to buy?
The first thing I tell my clients is that there is never a bad time to buy a house. It is always a good time because ownership helps you against economic uncertainty. You should think about from this perspective and it is a rental equivalent that makes a lot of sense. In other words, you have a condominium. I’m renting an apartment paying $800 or $900 a month I can buy a condominium anywhere in the country and the only difference I am no longer making my landlord rich. I’m building wealth for myself and if you look at from that perspective, trying to find the best investment. Keep the property for two to three years and collect the gain as the market goes upward. You can take the profit and invest it elsewhere.
In your opinion, what areas in California do think has the most resale value?
Los Angeles alone is home to some of the priciest properties in the world. I would say you should find a professional that understands locations when purchasing a property. That way they can show you the proper way to evaluate properties. 95 Percent of the time I advise my clients to spend less money by living where they are comfortable with the monthly mortgage payments. This a stepping stone, especially in Los Angeles, where the property is very high.
You have been consistently ranked in the top 1 percent of all real estate professionals nationwide. What does that statement mean to you as a professional in your line of work?
It means I work hard! I take a lot of pride in that, and it means I am constantly selling more real estate at a higher level in comparison to my competition. The way I choose to conduct business is based on the clients’ needs in comparison to my commission compensation. It also means I have done a lot more transactions than my competition, and I have acquired more knowledge. I prefer to work with clients that are in the lower price ranges because I have happier clients. if I can provide a service that other realtors are not willing to provide it works for me. I was just involved in a deal that was 560,000 for a condo and the deal almost fell through because the lender at Well Fargo did not like the homeowner’s association. I followed up by asking why not, and they did not have enough reserve money, meaning they did not have enough funding for a rainy day. When they released that information, I decided to perform my own due diligence and found that two condos closed a month ago in the same building complex. Wells Fargo told me that they probably secured more interest on the down payment, which was not the case because it is public record. So, I circled back to Wells Fargo to close the deal, or I could find other lenders that were more than willing to close the deal.
You are raised in the Dallas Metroplex have you thought about expanding your real estate portfolio in some of the surrounding cities?
Yes, to be honest with you I would not want anything more than to live in Dallas. I like the way the state of Texas operates compared to California. California is highly taxed and the property is through the ceiling, and I have been thinking about expending my license in real estate to other states outside of California. There are different kinds of transactions in real estate. In California, we are considered an escrow state, and other states are lawyer states. So, for the short answer, I would love to expand my portfolio into the state of Texas.