All Forum Posts by: Brandon Stewart

I run Blaze Real Estate a property management company in Amarillo. The economy is strong here. The rental market has slowed in recent months but expected in winter. Our market picks up in March. We have many efficincies under management with a ~10% vacancy rate with prices ranging from 485-625 depending on location property quality and amenities. Feel free to call my office and speak with me if you want to look deeper. 

I am going to disagree on two parts. 

Energy is the biggest sector in Texas but I do not think it is as volatile as other places. We are not subject to federal gas lease revocation at the whim of the administration. We have no federal land. 

The second largest sector comes in real estate and leasing. I would not suggest purchasing in the largest metroplex areas (Austin, DFW Houston, etc) have seen enormous growth and price increases in the housing markets. 

Texas' population has increased 43% in the last 20 years. About half of Texas's population gain since 2000 resulted from natural increase (more births than deaths); around 29% from net domestic migration gains; and 22% from net international migration gains

Anecdotal experience in the Amarillo area has been that smaller towns are on the rebound. They are seeing an influx of domestic migration because the drive time is not unlike those in larger cities with much shorter commutes and the small-town life is attractive. 

My suggestion would be to look at Amarillo and Lubbock. We have steady growth and low unemployment, and more than 5000+ jobs will be created over the next 3 years in the Amarillo area across all sectors including highly skilled and service-level jobs.  

I perform BPOs on a regular basis. I did not get into it to get REO listings. There are VERY few in the market right now, however, I am in this for the long haul and when the market downturns or we have a market like 2008 to 2012 I am prepared, experienced and can outpace any newbies and most experienced realtors in that sector. In the past year I have performed over 300 BPOs and I can tell you exactly what I have gotten out of it.

1)Market Experience – I know what price per square foot an area goes for. I know what features offer what value.

a)My selling clients get the benefit of someone who regularly analyzes the market and knows what to expect.

b)My buyer clients get the benefit of someone who can tell a home is overpriced, or can get a good deal knowing it is underpriced.

c)When the market down turns I have already completed hundreds and maybe thousands of BPOs and they know who I am.

2)Education – I am constantly educating myself on the market, learning is an essential key to LONGTERM success in this business. So many come and go through churn and burn agencies, they sell their friends and families homes because of loyalty but crash as soon as their sphere is exhausted.

3)Experience – The market analysis experience you are better equipped to negotiate and complete the sale. In negotiations it is most often the person with the most accurate and complete information that has the upper hand.

4)Money – at 300+ BPOs I have made more than 15k. If the national average for a first year agent is 15k I already have them beat, plus I have the education and staying power any 1st 2nd or 3rd year (if they make it that far) can’t match.

5)Contacts – I don't just perform BPOs for large asset management firms. I do them for local investors through real estate investment clubs. This gets me in the door to SELL their homes from the buyer side (they don't usually use listing agents) but I have access to non-MLS homes that no other agent has.

In short, DO THEM. You will be better for it, your clients will be better for it, and when the time comes and the market is soft, banks are dumping low priced houses on the market, you have the experience to pick up the REOs and if you are not selling REOs from the list side, the investors are coming to you to find low priced deals they can buy, hold and sell on the upturn. 

I just picked up a commercial property to manage with 23 units. The owner is a good old boy who does most business on a handshake and has been letting tenants pay late, getting months behind in some cases.

Most tenants do not have a lease or any kind of documentation. I have been chasing my tail to get any of them to respond to letters with requests for information, tracking them down in person, 

Any ideas to get these tenants to sign a lease without coming off as a 300 pound gorilla? The owner being the way he is and having relationships and personal interaction with them and his tendency to make deals on the fly may undermine my actions. 

I have no problems being the "heavy" but would like to finesse rather than intimidate and get everyone on the same page. Ideas anyone?

what they did was basically a counter offer don't you think? Once a counter offer is made, all previous offers are voidable. IMO when they requested a change in the contract terms, verbally or otherwise, this constitutes a new offer and must be accepted in order to be binding. If you sign, you've accepted whether their signatures are complete or not. 

Does your real estate commission have a website with list of approved education providers?

volume discounts would apply. Fee are negotiable at that volume. In Texas a license is needed to manage other people's property. A license is not needed for an employee to lease/manage for a company that owns the properties.  Maintenance would best be outsourced to local businesses and contractors. Discounts for volume apply here too. Maybe one on staff "handyman" if you have the volume for a full 40 hours. 

My structure is the same as yours. Brokerage doesn't currently have property management. I will handle all management and all leads for rentals and management will come exclusively to me. Commission is going to be 80/20, 18000 cap, and $22 a transaction for the e/o.

Everything is negotiable. If he is not counter offering with a price he is more comfortable with, I'd say he is losing out. Looking for the win-win should be the end game, am I wrong? 

Thank you Tamara, you bring up other questions as well. Having a partner/managing broker is a way to go, so a question becomes; can associate brokers in one agency, be a managing broker in another business entity or licensed agency such as a property management firm concurrently?