All Forum Posts by: Kristel Daugherty

Hey @Ben Grotzke!

I love what @Chris Mason wrote, and if you took his advice and ran with it, I'm sure you'd do well.  I've been building my business around investments, and I have the following tips to add.

1 - Become an active member in local places where investors are.  Look for local events hosted by https://www.iareia.org/ (I just Googled Iowa real estate investors).  Search events on Bigger Pockets.  Go regularly, and make face-to-face connections.

2 - Get comfortable searching public records and using the access that you have to build a database of non-owner occupied properties, duplexes, and other multi-families. If you're doing #1, you'll start to recognize names from this database. Build relationships, and start marketing to the people that are already doing it. Figure out ways you can bring value to their portfolio (ie. are they sitting on a ton of equity that could be leveraged through 1031 exchange into more cashflow? are they ready to get out of the buy-and-hold and want to transfer into a REIT or setup their dream home?).

Make connections, grow the connections, and provide value.  Know people in related fields so you can refer your clients to CPAs, 1031 exchangers, financial planners, attorneys that specialize in trusts, real estate law, or setting up LLCs/Corps, property managers, handymen, and everything else that you can think would be helpful.  Being resourceful when you're asking for a commission builds trust, and can lead to business in the future.

As you're connecting with investors, ask who they've worked with to purchase and sell real estate in the past.  Reach out, and pick their brain over coffee!

Good luck!

@Charlie MacPherson - I think it depends a lot on the individual brokerage.  IGNITE is meant to give rookie agents a foundation to build off of, and BOLD is the natural next step to launch after that.  You certainly don't NEED to attend them, and our market center incentivizes our ability to attend.

Coaching is, again, going to depend on the local franchise.  Ours is great.  We've held sessions to get rookies off to a great start, and sometimes that's hosting open houses to find buyers.

Local culture is going to affect things too.  KW culture is about sharing information, so even if that formal coach isn't the right fit, there should be other agents/brokers in the office that would step in to offer advice, work with you, and possibly even co-list/buy with you.

I'd be happy to talk to anyone about my KW experience and why I love this family.  I've had a great experience, have built fantastic relationships and friendships, and would highly recommend.  My franchise hosts free clock hours, regular classes on topics to keep up to date with top skills, has a managing broker that's easy to reach, and even more people that have become a great part of my local network.

Hi @Jared Mathis!

First, I think you have a plan that makes you feel comfortable, and thats a good place to start.

Second, I think there's another option that should be VERY tempting. If you have $425k cash, that would allow you to purchase an apartment complex valued at $2.1M (based on 20% down). There's a whole lot less competition in that space than there is for cash-flowing SFR. There is less risk because the vacancy rate is distributed over multiple units instead of a couple. You'll be able to increase cash flow each year as rents increase or new tenants move in. Capital expenditures are focused on one property instead of multiple (roofs, for example - you pay for one larger roof every 20 years versus multiple small roofs over 20 years - there's a cost savings there too).

Happy to discuss in greater detail, get you connected with good resources, or just answer additional questions!

@Amy Fulbright - great question.  There are real estate brokers/agents that work with rental property investors, and they would be familiar with local rent rates as well as local inventory.  They'd also be able to tell you if what you're looking for is feasible in the areas that you're looking at and be able to make recommendations accordingly.

As you can see from @Russell Brazil - each broker has a different interest in clientelle.  Just like when you're interviewing an agent, they are also interviewing you.  Not everyone is going to be the right fit for what your real estate interests are.  Keep looking and find the right broker for you!

@ML Moseley - Welcome back to Western Washington, and you're in a GREAT location.  Love your plan, and if you'd like to connect to other investors in the area there are a few options.  If you make it out, say hi!

- 1st Wednesday of every month, REAPS Kitsap @ Cloverleaf Sports Bar & Grill in Bremerton  https://reaps.memberclicks.net/register-for-an-event-
 - 3rd Monday of every month, @Jenny Moore co-hosts an informal investor conversation at Fuelrz Cafe in Silverdale

Any questions about our local markets - just reach out and I'll do my best to help or get you connected with someone great that can assist.

@Jesse Aaron The agent that represents you has a fiduciary duty to look after your best interests. Interview a few, find someone that you feel comfortable with. The people that you first called - not the right fit for you. That person is out there!

@Alester Thomas - There are certainly better deals out there, and that doesn't mean you have a bad deal.  Knowing there are other offers higher than yours tells you that the demand is there.

California markets differ than other parts of the country.  Many people here are looking for cashflow properties, and that's a rare thing in CA.  More often CA properties are purchased for appreciation, and if the numbers break even that's generally considered good.  Personally, my first real estate purchase was in California because I bet on appreciation.  It worked. :)

I think you've made the case for a reasonable investment here, with the potential for higher rents and lower expenses over time.  You'll have tax advantages, and the ability to grow your portfolio over time with this first investment.  The only reason I would steer you away from this deal is if you weren't planning to hold for less than 5 years.  The longer you hold this, the better your numbers will get.

@Jesse Aaron - sounds like you're good at finding properties on your own, and your needing a Realtor to just help with the paperwork / negotiation.

Can I propose adding another step to your process? Contact local agents now to figure out who understands your strategy. Every agent has a slightly different skill set. With our economy being in growth for so long, not many agents know how to write and work with off-market properties (the MLS properties have been feeding them steadily for years). Get an agent that knows how to work non-traditional deals and get them on your team!

I'm not in your area, but if you search the Bigger Pockets Member page, you should be able to find a few folks in your area.  Start there, reach out if there's anything else you need help with, and good luck!

@Kyle Swarts - Yes. Call a few agents to find one that you like, and then ask for a few minutes of their time. Ideally, sit down at their office or for coffee so you can really get in sync and develop a mutual understanding. Be clear about where you are in your search, and how you'd like help. The right agent will be able to setup that search, and may have additional tips or areas to recommend based on the conversation that you have. Every MLS runs a little differently, and the options vary for communicating new listings. In my market I can setup alerts through the MLS that I screen for my clients or I can set them up with an app that helps them setup their own search criteria (and shares with me the properties that they are most interested in so we can easily be on the same page).

Good luck!

@Carl Ohai - When I run comps, I don't comparable manufactured homes with stick-built.  Whenever possible, run your comps with the same type of construction.

Comps are not an exact science, there's a bit of wiggle room to them, and you want to reserve that wiggle room for the right things.  In general, I run my comps within a 2 mile radius (wider for rural), similar lot size (+/- 20%), similar square footage (+/- 20%), within the same building type (condos / residential / manufactured...), and with a similar age range (compare new to new, post 1978 with like, and +/- a decade before that).  Ideally I like to have 10-20 properties to compare from, and refine based on condition and actual similarity to the property at that point.

If there aren't enough comps in the area, consider what is in that neighborhood and broaden parameters accordingly.  I also look at Active, Pending, and Sold (as separate subcategories in the comp) to see where they market thinks it is, where the market bites, and where the market actually is.  All of these will give you valuable information.  You can also take this information to fill in any categories that are light (for example, if there are more pending manufactured with days on market higher than the median DOM, that tells you there's some market saturation and to adjust comp accordingly).

Last note, I don't do comps based on # of bedrooms.  You can, and this is where the art of comps plays in for me.  A 2000 SF house with 3 bedrooms versus a 2000 SF house with 4 bedrooms in my market will comp similarly.  The 3 bedroom may have an office, or the 4 bedrooms might feel "tight".  Age, overall living space and lot size within an appropriate radius will give you a lot of great info.