All Forum Posts by: Brandon Chaney

@Joe Homs Thanks for the welcome! I saw in your profile that you’re a flipper. How have you been handling this shortage of inventory?

Hello community,

I'm relatively new to this platform. I've been an agent for years and I've been watching and consuming content for a while now. I work for an investment firm in LA who focuses on distressed assets, SFH, MFH (4 and under). We provide inventory to local investors. I'm really interested in the investment side of real estate and I'd love to connect with some of you to share some ideas.

Thanks for your feedback. As we suspected, the market has squeezed even tighter, pushing prices further upwards. We're doing a lot of business in the B to C areas. Owner occupants seem to be cashing out on their investments in these areas and newly renovated homes are selling left and right with low "days on market". I've recently been discussing more MFH in LA than in the previous months. Seems like there are plenty of people looking long-term in LA despite the tenancy issue. A-properties are still working for us, but 85% of my business is definitely in the B to C market. Still wondering how long this market will last. Are you 5+ units, or do you also buy 4 and under MFH? 

I deal exclusively in distressed SFH in LA, and I've been getting mixed feedback from some of my investors lately. Some are running full steam ahead, but a few are running out.

The Los Angeles market has seen inventory drop over the past few months, pushing prices even higher. Tenant friendly laws have further pushed investors away from rental properties. Is there an imminent decline, or is now still a great time to flip in LA?

I love properties that have sat for a while. I think with the right mentality you can really provide value to the seller. Who in their right minds wants to "sit on market" for a long time. It's disheartening to be honest. Anybody who tells you otherwise probably isn't serious about selling. Its a big red sign on your forehead saying "I WAS WRONG". Just like you said, if it's still posted, it means they still want to sell. That's when I come in to save the day!.... until I discover the house is a complete tear down and the seller still won't budge because he went to Zillow and got a Zestimate. lol

@Steve K. I think it's one of those things where "it's what people say". On the flip side, even though I don't agree with that mentality, I wanted to get some additional perspectives on it since I'm hearing it a lot. I don't want to be the one who's not paying attention to the market. There are pretty solid deals on the MLS and as long as you're making reasonable offers with the intent/capacity to perform, you're in good shape. A good listing agent can be extremely valuable in a deal. You're spot on when you say half the job is to convince the seller to list at a realistic price. FSBO's can be risky when you haven't built a rapport with the seller. They usually "want what they want" and it takes a skilled professional to talk these people down (to earth). Also, you're never really sure if they're just testing the market or if they're the real deal. I appreciate your take!

@Kaustubh Johri You're telling me you bought a FSBO off the MLS...ZILLOW, of all places and got a cash flowing deal for 11% under list price....all from your phone...in INDIA!? Great buy buddy. You could definitely turn around and sell to capture some of that equity. I'm assuming you'll sell it yourself? Selling fees may eat into that spread a bit?

How are tenant relations in Atlanta? (I grew up there). In LA it's a touchy subject for sure. With everything going on, there are no evictions and CA is infamous for our tenant friendly laws, so cash for keys is a pretty common thing. Were you able to get recent rent receipts, leases, etc?

@Shawn Bhatti I like that theory. I'm glad you're wheelin' and dealin' on the MLS. I'm always interested in how "set-in-stone" peoples opinions can be about real estate even when the market shows otherwise. 15% below list? That's a pretty decent discount. Especially for someone inheriting a property. He didn't "give it away", he probably needed it off of his hands, and you scored a good deal. Keep it up! 

In LA, inventory is low and MLS deals are selling for way over, quickly, on the regular. FSBO sellers know what's going on so they're putting the squeeze on us too, but there's always a deal to be done. "There are no bad properties, only bad prices"

@Lee Ripma My thoughts exactly. A deal is a deal no matter where you found it. MLS deals do give you more assurance that your seller is serious, but it blows my mind how many times I've heard "I don't want to see anything on market" or, "I've already seen everything on the market". My question is usually, well...why didn't you buy it? Did you even make an offer? I don't mean to be argumentative, but I really try to understand that logic when the numbers "make sense". Real estate can be emotional for everyone involved, but I do my best to break through limiting factors in order to bring good deals to the table. Thanks for the insight!

I've been having conversations with clients who absolutely despise "On Market (MLS) Deals" even when they're priced under listing price. I've gotten some explanations that I've taken into consideration but I wanted to open the floor to get some better insight. I'm a REALTOR in Los Angeles who focuses exclusively on distressed assets. I wholesale my deals (ethically, by the book(is there a book?)) and....well...some of them are "On-Market" MLS deals. I'm the direct contract holder every time. Doesn't matter if i'm 200k under list price and a 65% deal...which is rare in this market., some of these people won't even look at it. 

Can you explain this mentality? Is it pure lunacy or is there some real truth behind it?

What are your thoughts?