All Forum Posts by: Austin Johnson

I like this idea. my dream property is an apartment complex. 100+ units all in one location.
the first time I ever moved "away from home" I moved into one of those and that's where i discovered REI. ever since it's been a dream to own one!

so I ran the numbers at 1800 rent for two units. 20% reserves (10% cap (per Peter's comment), 5% maintain,5% vacancy)
3.5% down gives an estimate of $1401.63/month in PITI.
1800 x 2 = 3600. less 20% = 2880.
adding all expenses I get $802/month.
2880-802 = 2078.     2078-1401.63 (PITI) = 676.37 a month net income?
now, I know BP is a place for learning and networking so can someone explain how this would be losing money? what am I forgetting? 
NOI (8,116.44) / property value (525,000) = 1.54% Cap rate.

typically in Missouri you hire a home inspector. you go under contract with an inspection contingency then schedule an inspection. paying for the inspection is either out of pocket or depending on the inspector you can do it at closing. 

failing to live in the property for a minimum of a year is called mortgage fraud. 

This is going to come off brash...
what you're asking for is a well educated and skilled surgeon recommendation that is willing to take a 50-75% pay cut for their skills. Those two never align. if someone offers 1-3% commissions, they're most likely not a highly skilled agent.  

as said above, learn your market. are you planning to niche down or be a general agent? figure that out. I'm about a month into being an agent and I've already learned what I do and don't like. (I love investors, don't love first time home buyers) figure this out by asking yourself who would you like to work with? and interview brokers to see who matches your style. while interviewing, DONT focus on commission splits. We're both new. while I feel confident in my knowledge of real estate as a business, there's a lot that I don't know. go for a broker that offers guidance. you can always switch later to better commissions. I would hate to have great commissions and low support vs great support and mild commissions. learn, grow, then make the decision to go after the money. I personally want to be THE investor's agent locally and be the expert. having someone supporting me with the gray ins and outs of the business is worth more to me now than the larger commission split.  hope this helps. feel free to DM me anytime. we're both brand new agents so it will be exciting to see how we each grow!

holy smokes... gets screwed by the PM, hires a realtor and the realtor drops the ball too!

To provide some kind of value in my comment... in Missouri I've personally shown several tenant occupied rental properties. you simply give the tenant 24 hour notice and you show up. Of course you act professional and very kind and thank them for allowing you to walk through their living quarters (as a buyers agent) but you do it. I'm curious how anyone made offers on your property without walking it first? much less more than once? that's wild. who makes an offer sight unseen on a rental property?  

I would buy the property and discuss with the tenant your intentions to raise rent and rehab the property. Frame it with the idea that you're working in both of your best interest.  That SHOULD give them the idea that 'hey, maybe we should move". how long have they been tenants? could they potentially afford the market price rent after rehab? don't make that assumption but let them make that decision. (even if you think you know the answer, letting them answer it allows them to save face).

As Chad said, it's a TON of risk for a realtor to scheme behind the scenes over a few hundred dollars extra. My license, my reputation and ability to sell another home > a few hundred bucks.
Think about this too. Most agents don't get the full 3% ($240 extra) some get 80% of the 3%. so $192. some are on teams and get even less! $96 if you're under a broker and on a team. man, I'm not dealing with the headache of a fake offer and all that for $96.

Everything said above is spot on, let me provide an example.

I put a house under contract with 7 days due diligence. On day 3 upon searching the county sheriff  records I discover there is an undesirable neighbor that would not go well with families. I can legally use it as a reason to withdraw/terminate the contract. 
It's essentially a 'let me deep dive and research this property and the surrounding area and make sure it's REALLY what I want before we investigate the house itself".