All Forum Posts by: Brad Jacobson

 I do it every weekday, so 5x/week is the goal.  I'm usually able to do all five but it requires commitment for sure.

Do PMs send leads often?  Are those like tired landlords who want to sell off their portfolio?

Hi Fellow BP Fans,

Recently I took on coaching to take my agency business to the next tier.  What I've learned is so simple that it almost seems silly to share but it's paying huge dividends right now.  The golden nugget from this coaching has been the idea of a "power hour" or simply locking myself in my office for 60 uninterrupted minutes and just getting on the phone to say "hi" to everyone in my SOI.  

What else is there that you successful agents do that produces huge dividends?  What is your favorite lead generation technique?  What is one thing you've done or learned that's help push your real estate business into the next tier?

I imagine transaction volume will steadily rise as people become more comfortable with the 6-7% rates.  However, affordability is at an all time low so I doubt we'll see a dramatic increase in transaction volume until rates come back down.  January's inflation numbers weren't good either so it's unlikely we'll see lower rates again soon.  Sellers will need to keep coming down to match the in-affordability created by bad fiscal policy since Covid.  

If you get a deep enough discount on the property, it'll be worth it.  However, you're probably in for a lot of work. 

The security deposits will be disclosed on the settlement statement.  As the lease will carry to you as the new owner, the deposits should as well but in this situation, who knows what the seller will and/or won't be able to do.

I would purchase the property with the understanding that you'll likely have to do an eviction.  Costs and timelines vary state by state but bank on at least three months and $5,000 and you should be good.

Again, if you get a screaming deal on the property and you're willing to put in the work, do it!  If you want a turnkey experience, I'd stay away.  Evictions are a lot of work.

First, HELOCs and cash-out refinances will typically only allow up to 80% of the appraised value.  If your property really is worth $200k, you should be able to leverage the difference between what you owe and $160k.

Second, pulling a 401k at the bottom of the market is the worst way to manage a portfolio.  Stocks are on sale right now and this is the time when people should be stuffing their 401k, not pulling it out.  

If you're going to pull funds from a 401k to invest in real estate, have a pro advise you on the proper way to do a self-directed 401k and do it when the market value of your stocks are high, not when they're on sale!

Do you like the tenant?  

If that is a great tenant that you'd love to have in the property for ten+ years and have them essentially pay it off for you, then do it.  Give them the upgrade!  

If you need to revise the lease, increase rent, or something else, use that heater as a negotiation piece.

If the tenant is just a pain, let them know that a larger hot water heater will be installed in the future and leave it vague.

Good luck!

I'm going to offer a different opinion because I believe our government has become so addicted to easy monetary policy that I bet they'll happily drop the fed rate back to 0% at the first chance they get.  Fiscal responsibility is only going to continue to get worse under our current leadership and political landscape in my opinion.  

I wouldn't bank on it happening in the near-near future but I'm fairly confident that down the road we'll have another bizarre incident like Covid or a 2008-style recession and our geniuses at the Fed will happily drop rates back to zero and keep them there way too long again in a similar reckless fashion.

Personally, I just hope my portfolio is large enough at that point that I can refinance the whole thing back into the 2-3% and be set for life.  That's what I'm banking on and looking forward to!

Here in Utah, we haven't seen a dip that dramatic in home prices but we are down at least 10%.

However, I still see and hear a lot of fear in the market.  Many still think "the market is going to crash" and yet, it's already dropped 10-25% which historically, is one of the largest "crashes" ever.

The market has "crashed" but the narrative we've been fed doesn't confirm that so people have a harder time grasping it.

Thank you for taking our questions David!

Personally, I've read Sold but still need to read Skill and Scale but they're on my to do list!  The answer to my question probably lies in the next two books.

I've done well as an agent and nurtured my SOI well.  It's turned into a healthy income for my family and me.  However, I've plateaued over the past year or so.  My income has been the same for almost three years now and I'm struggling to break through to the next tier.  Currently I find most of my business through daily social media posts, lots of connecting with people on Facebook, and I'm very heavily involved in the community (Rotary, RE meetups, church, etc.)  I need help breaking through to the next tier and would love your thoughts on how to do so aside from the slow, "keep building my SOI over years and years of meeting people."

Thanks in advnace!

I believe new wholesalers get bashful about commissions and profits from potential deals.  That obligates people to stretch the truth about what they're doing.  It's certainly not right, but seems to be super common.

Experienced wholesalers are way more likely to shoot straight with you.  That's been my experience.