WOW! thanks for all the input everyone…the realtor
works for her family business and they ONLY buy SF homes to rehab and sell…they do not deal in multifamily units, nor does she have any knowledge
of creative financing since they are cash buyers. she is very good at pointing out structural issues, etc.
…thanks for the cheerleading session…i’ll just stick to numbers…
another question: Does anyone here have properties in very low income neighborhoods have advice, suggestions?
I know someone is doing a good job in that area!
thanks again, you don’t know how much this helps!
Okay, now that we’ve seen SEVERAL places, we’re having a little problem getting started … on the positive side
we’ve got:
1- funding sources
2- a solid knowledge of our target areas
We want to primarily buy and hold multifamily units, but
sell the occasional SF fixer upper
Problem: my agent keeps talking me out of everything…w/
questions like Would you live there? Why buy anything that’s in between perfect condition and a total rehab?
I think I’m in real trouble if it’s all about if I would live there… If the rent is coming in now, with long time tenants and they like their place, why not? as long as cash flow works. Also, acrosst the board she says stay away from one bedroom apts…but they go like hot cakes around here… lots of single people live in the city. I appreciate that she is warning not pushing us into stuff just for commission… but, where is the perfect deal?
Do you agree, I should be most concerned with will people want to rent it? will I have enough cash flow? anybody else
have a starter’s block?
I would ask the Realtor one question. How many properties have you ever owned that you bought strictly as an investment? If the answer is none, then I would dump her right then and there.
I learned many years ago that there is a HUUUUUUGE difference between the properties that you live in and the proeprties that you rent out. The property you live in is your home. You treat it differently. You fix it up differently. You might have a pool or a jacuzzi. You might paint the walls blue to match your bedroom set. Rental properties and rehab properties are completely different. You are dealing with people who are for the mostpart in lower middle class and down. You are running a business. Most realtors know very little about running a business. They think they own a business because they are self-employed but in reality they have a job where they are the boss except they have little job security and no benefits. I always hate to put down Realtors because I have a license. But at least I kind of know where things stand.
You know your goals! Go out there and make some money. Don’t listen to someone that doesn’t know how to make money!!! You have the knowledge so GO GO GO GO!!!
Get advise from those who do… - Posted by Brandi_TX
Posted by Brandi_TX on March 24, 1999 at 18:34:25:
… In your area that is. Go to your local REI club and talk to them about what type of properties to stay away from. They are in your area, and DOING what you want to be doing. Learn from their experiences. As long as your agent isn’t killing deals for you keep them for comps and such, but as the rest said, don’t take their advise too highly.
Alicia,
I have not purchased my first property yet. I am still studying. CS says DON’T look for properties you would live in. Look for bread and butter properties. Bottom line…how’s the cash flow.
Dump the agent and trust your own instincts!
I’ll be watching for your success story.
Trudy
Ask the realtor, if the MLS is worth bothering with if it is filled with these terrible deals.
Does it bother you that you are forced to try to scam someone into buying those properties?
Call the agent are Read word for word…
Thanks for all your assistance in selecting properties, however as you point out the MLS doesn’t have good properties for me to invest in, that is really too bad I was wanting to find a consistant source of properties to buy.
I also would like to thank you for in a polite way that your told me I shouldn’t waste my time with the MLS. I will Go seek properties on my own. Matter of fact I wrote a letter telling the head broker for your company thanking them for having such honest agents and I reccommended that the broker give you immediate feedback on your assistance to me.
Ok, Ok, I’m just kidding…
I agree with the others, fine an agent that is interested in bringing you properties that meet your buying guidelines
Re: starters block and first time buyers philosophy… - Posted by Mark (SDCA)
Posted by Mark (SDCA) on March 24, 1999 at 12:52:54:
I agree with Reif. Dump the agent. Or at the very least, take her advice/comments with a huge ggrain of salt.
Does she understand that you are an investor? Whether YOU would live in the property is completely irrelevant. YOU aren’t going to be living there. Of the properties I own, only 1 would I live in. For my investments, I want solid blue collar properties. For me and my family, I want better than that. Go by the numbers and be dispassionate. (It sounds like you already are. Don’t let the realtor dissuade you if the deal makes sense. Remember you are NOT a retail buyer. It sounds like the realtor is only used to dealing with those.)
Cheers,
Mark
What difference does it make? The only thing that’s relevant is if SOMEONE would live there and you can make enough money from it.
I suspect Donald Trump wouldn’t live in a lot of the places he’s owned.
“Why buy anything that’s in between perfect condition and a total rehab?”
Again, because you can make money on it.
My problem has been finding the deals. Once you’ve found them, and you know it’s a deal, don’t let an real estate agent talk you out of it.
Does she invest in properties?
John Behle calls them ‘psychic vampires;’ those that can ‘see’ all the bad things that will go wrong with your deal. Of course, they’ve never done their own.