All Forum Posts by: Brandon Moffitt

I do not disagree with the posts here, but I think my previous post requires clarification. As to the question of whether or not you should use a Realtor or sell directly to an investor, in my opinion, depends on the condition of the property. If the property is in disrepair or needs significant improvements, then it may be easier just to sell directly to an investor. That would save you commission and are dealing with individuals that understand there is work to do and the costs. You will not spend a lot of time dealing with individuals making offers, only to bounce after an inspection or sending a repair list that you are not interested in completing. Further, many Realtors may not want a listing "as-is" because they spend a lot of time showing the home to people who are not interested in doing the work. (This is a qualified response and there are properties that will sell regardless of condition because of location and any agent would take them in a heartbeat - but if that is the case, you will have no problems moving the property either way). If the property is in good shape, then you must make a decision whether not you want to handle part of the transaction or not. If you have photos, a way to allow people to see the property, and contracts for the purchase (sometimes this is included in flat-fee MLS), you can do flat-fee MLS or for sale by owner. If not, you hire a Realtor. Everything is negotiable and you work out a deal there like everything else.

Welcome @Eric Pinter. I am also in Little Rock, a real estate broker, and an attorney. We should get together sometime. I been using BP a couple of months and it is nice to have a resource to see what others are doing across the country and also connect with others.

Just to update the thread, we are planning our next "coffee meeting" for May 10, 2016 at 8:00am. We will meet again at the Starbucks on the corner of Cantrell and Mississippi. Everyone welcome.

There could be a lot reasons you are getting outbid. All of them are not necessarily bad. You have to trust your instincts, know the numbers and how they relate to your own personal financial situation. Sometimes deals are missed by being unwilling to spend an additional $1000.

I recently decided to pass on a home because the seller wanted $10,000 more than I thought it was worth for the risk I was taking. My decision was based on the fact the home had some significant water damage and that I would have to replace a significant portion of the structure or just tear down the home. The home was a wreck, I only had a day to decide because it was in a very desirable neighborhood, and my call was I was not willing to risk the additional money. Someone else did and they were able to salvage the home, remodel, and are in a good position on the home.

I didn't get outbid there because I didn't understand the numbers or really miss on the repairs. I got outbid (or bailed) because I wasn't in for the risk on that property. So my point is that every situation is different and you just have to feel confident in your ability to make the call on any given property and then live with the decision. As you make more offers, you will get a better feel for each property and the market.

At some point, you may find that you are making a mistake somewhere (e.g. overestimating rehab costs or undervaluing the property) or that you need to increase your tolerance for risk. But you will only know those things once you make offers.

I would note that I know that a lot of people rely on their real estate agent to provide comps and advice (which is a good idea), but I would encourage anyone who is serious in investing to personally get up to speed on property valuation. No, you will not have access to the MLS, but you do have access to the county sales data for free that includes both MLS and non-MLS sales. Most agents probably have never even searched non-MLS sales to give you valuation advice. Searching the public data should provide more sales than the MLS and give you better insights on what is happening in the specific market (e.g. sales directly between investors).

Also, if you have the ability, make cash offers. You do not have to actually have "cash" as long as you can cover the purchase price with a line of credit. Dealing with local banks has allowed me to purchase any home that I'm looking at for "cash" because they are willing to extend me a sufficient line of credit. Once you make the purchase, then you can secure long-term financing.

If you can pay "cash" write your offers with 7-10 day closings. Most title companies here can accommodate closing that fast, especially if you have an existing relationship with the firm.

Hopefully, that helps a little. In the end, have confidence in what you are doing, but be willing to adapt your strategy as you move forward.

Three of us met and I thought it was a great experience. It was just an opportunity to discuss where each of us are in our "plans" and no formal agenda. We are going to do it again next month, just follow this thread for the date/time. 

Here is a late reminder that we are meeting today. 

I agree that using a professional photographer is a must. I hire one on every house I list and the cost is nominal (under $80). By hiring a professional, I have quality photographs delivered to my inbox and do not have to ask myself if the home is adequately photographed or make subsequent trips to the home to take additional photos. If you are an experienced photographer that others ask to take their photos, then you can do it yourself. If not, you must hire someone.

I am not a TX lawyer, nor licensed there, but the bank probably could sue you under breach of contract to collect the debt. The lien doesn't absolve you from payment, it just protects the bank by granting them security in the real estate. You signed a contract with the bank to pay the debt. Usually, they have due-on-sale clauses that allow immediate collection of the entire debt at the time of sale. If they learned the property sold and the loan was active, they could sue to collect. The bank's problem would be if you spent the money on a wild night in Vegas and were ready to file for bankruptcy upon return. In that case, they would be left holding the bag with no security.

I see that happen sometimes, but rarely is it on a full-service listing. Usually, it is when the seller is just paying the agent a fee to place their home on the MLS. When that is the case, most agents do not do anything but post what they are provided by the seller.

@Juli Brandenberger looking forward to seeing you there. Just come up and introduce yourself. I am not sure how many people will be there since it is a very informal event, but several have stated they were planning to attend.