All Forum Posts by: Chris Bounds

Congrats on both! 

If you want to be a long-term professional in real estate I'd recommend getting licensed. It can only help you.

Getting out in front of investors? Do you mean private lenders to raise the capital? 

Side note: HMU if you pass on that deal.

Consider working with another investor and possibly JV. It could be a good deal, but if you don't have the resources and/or capital to take it down then it is or can become a bad deal for you.

When the repair gets to half the price of replacement, especially if it's old and will need replacement soon, I'd replace it.

Our best deals have always come from rentals using the Slow Flip Strategy, a variation of the BRRRR strategy.

The first and second deal we did using that strategy had a gross profit of $100,560 and $119,970.

This is now our primary investment strategy, moving away from scaling a flipping & wholesaling business.

Maybe you can JV with a developer. You bring the lot, they bring the financing. I wouldn't jump to partner with an unknown person, but a JV can be good to leverage for tools / skills you don't have.

@Mike Cumbie under that scenario and not taking any stock price changes into account it would be essentially equal. Slightly positive on the eXp side, but negligible. If you take the past 12 months actuals and they took part in the Agent Equity Program (AEP) it would be closer to a $15k gain with eXp. 

This is what the agent will have to decide. They can continue on that path building their business (and their broker's business). When they retire or exit in 5, 10, 20 years they have nothing to sell other than a database. With eXp, especially if they take part in AEP, they are building a sellable asset. Maybe the stock goes to $1. Maybe it goes to $150. It's still equity they can count towards their retirement plan and it required no additional effort. And it can (and should) be liquidated at some point depending on the agents financial goals.

Add on revenue sharing over the same time period, the comp plan is unmatched. 

I'm brokerage agnostic. I was at only one other brokerage before, a flat fee shop. When given the opportunity to build wealth and passive income through my license, especially with an rapidly growing disruptive company, it was a no brainer. It's not for everyone though.

It's not for everyone.

People get hung up on EBITDA without understanding what they're even looking at it. EBITDA isn't the end all number for the health of a company though. You have to dig deeper.

Review the cash flow statement and it tells a different story. Their net cash flow has been positive for the last 5 years and growing rapidly the past 2 years. They carry virtually no long-term debt. 

The traditional brokerage model is a low margin business. On top of that it's heavily fragmented and being threatened on several fronts by disrupters and other external forces.

Glenn Sanford's goal was to redesign the model in the cloud-based era to minimize overhead costs (brick & mortar, redundant staffing, etc) while improving services & compensation  to provide a value proposition for agents that is so strong it would be "irresponsible" (his words) to hang your license anywhere else. 

Based on the past 10 years and the current trajectory I'd say - so far, so good!