Interview

[Robert Stephens]

I am starting to interview Realtors. I am looking for advice on what questions to ask. I will be doing flips.

Thanks

[William Robison]

@Andy Robison

Thanks for the kind words. Yes, Andy is a client and we share the same unusually spelled last name, but not related, which we disclose on every contract.

With that said. I agree with the other posters on this thread. If I get busy and I have a prospect contact me looking for good deal is Kansas City, I am less likely to jump at answering that prospect right away and focus on the ones that have defined goals or interests. I do not expect that my out of state buyers are familiar with the entire market area, but having investment goals and criteria in place, gives me a sense that they have done some homework and are better prepared to make a move when the right deal that fits those goals comes along. To blanket each investor with the same goal of making money is a complete risk.

Everyone is looking to make money at this game, or it would be an expensive hobby.

Some look for cash flow and lots of it for a low investment, regardless of risk. Some are looking for little cash flow but good upside potential and tenants that are paying the mortgage. I work with a group of investors from around the country and the world. Each has a fairly unique plan, which when I started working with investors, I couldnt understand as well as I do now.

Regarding Adrian's comments about Realtors as investors. He hit the nail on the head about cherry picking. Yes, I used to flip houses. I have a degree in finance. I am analytical. These combined give me a fair sense of building a solid investment portfolio. However, I do not invest anymore. Its not that I dont believe in my product, but that I have made a professional commitment to my clients to not compete with them. I pick the best and sell those, rather than "buying the best and selling the rest".

For a flipper, I agree with Joanna. However, I expect that my flippers have a UVP...unique value proposition. Meaning, what sets you apart, or gives you a competitive advantage against all of the other flippers in the market. Foreclosures have slowed down, a lot. In order to compete, you need a plan that gives you an advantage. For some, that is working with cash and not having a cost of capital. For others, its that they have skills of trade to do some work themselves. Keep in mind that if you want to scale that business, you eventually have to "put down the hammer".

Being a flooring contractor is a certain advantage, capitalize on that. I get a little twisted at the cost of refinishing hardwood floors. This can save you some money and give you an advantage. Your best "play" would be to have a group of contractors that are reliable and "priced for the new economy".

Best wishes with your investments.

So, again, thanks Andy. Its been a pleasure working with you. I found another house today that I think might be of interest to you.....