Quote from @Manny Apodaca:
Buying a condo in Southern California as a primary home, long term, house hack, BRRR, 1ST time, investment....
1. What are possible pro/con of using/not using a real estate agent to close 1st deal?
2. Pro/con of using seller's real estate agent instead of your own, to close 1st deal?
3. Can a real estate lawyer be enough to close 1st deal?
4. Any and All advice for a 1st time primary home investor?
Please and thank you!!!
Hi Manny! These are all great questions and I'm happy to throw my two cents in. A little background about me: I have been an investor for the last nine years and only recently have decided to get my real estate agent license in California and join a team, so I completely understand both sides.
1) having an agent is very helpful because they have access to the multiple listing service MLS. If you decide to go with an agent, it would also be helpful if they have access to off market deals. For instance, I work on the David Greene Team and we work hand-in-hand with a lot of investors on off market deals as you can imagine. I would say interview a couple agents and make sure you ask them if they have access to off market deals. An agent will also ask what your parameters are and sort through the listings to find you only the ones that fit your criteria. The agent will also facilitate all of the paperwork and be able to advise you on your due diligence. Agents also typically have a lot of connections and know a lot of people in the industry to refer you to. Such as financing brokerages, home inspectors, etc. These are just some of the pros.
A con is you'll pay between 3-6% of a commission fee to an agent for doing this work for you.
2) if the seller becomes the buyers agent also, this is called dual agency. You will still pay the commission to the agent. The only thing that is concerning is that if any thing happens legally, the agent will not be able to advise you or the seller in court/arbitration. Most broker chose don't recommend it because of the legal aspect however it is completely acceptable and does happen.
3) if you don't use an agent, it is highly advised to have a real estate lawyer involved. They can give you advice, but that's it. There will still be the seller's agent, a transaction team, the bank and an escrow company involved.
4) being a first time homebuyer can feel overwhelming. Southern California can be difficult to navigate as well. If you're buying a condo, make sure you look into the homeowners association fees prior to making an offer. There might be litigation, which usually involves a higher HOA fee than normal, even if you're new to the complex. When buying any property, find out if there is Mello Roos in that area. That means that they tax your property additionally to cover the cost of schools and other properties for the area. Make sure you look up the crime rate as well, especially if you're looking to house hack because you're inviting others to live with you. If you're looking to BRRRR a deal, I would suggest finding a good general contractor or construction team in the area prior to making the purchase have a conversation regarding how long the projects take so you know how much money out of pocket it's gonna cost you each month that you own the property. The book BRRRR is fantastic for getting you prepared for it too :D
I know this is a lot of information but hopefully it gets your brain thinking! Feel free to reach out to me if you'd like to continue the conversation. I'm happy to help!
Have a wonderful day!
Ashley Undercuffler
