All Forum Posts by: Brian Utley

@Shawn Ackerman Thank you for that very important distinction.  That gives me something additional to consider, the option to market to another investor.  This is a local investment.  And thank you very much for the encouragement as I'm getting started.  

James Wise Thank you for that perspective. A lack of patience led me to consider marketing with a tenant still occupying but I can see how unwise that would be. Brian

@Natalie Kolodij Great explanation on the capital gains equation.  You filled in some gaps for me that will serve me well going forward.  

@Account Closed Thank you for suggesting the importance of quality staging as opposed to the condition of the property with the tenants in there.  

@JD Martin Thank you for that perspective.  I was hung up on the quick turnaround rather than thinking about the benefit of delaying until the tenants were out.  And thank you referencing the tax professionals.  

I made a cash purchase on a rental property almost 2 years ago without a clear understanding of how to access what a good return should look like & how to leverage money.  I haven't lost money on it but the more I've learned the more I've realized I should be finding deals with better margins.  I received word yesterday from my property manager that my tenants gave their notice & will be moving out in a month.  I see this as a good opportunity to sell the property & reinvest elsewhere.  I would obviously be looking for a quick turnaround here with the hopes of closing on the sale of the property as soon as the tenants move out.  To do so I'll need to market the property with the tenants still in there.  These have been trouble-free tenants but they clearly won't be as motivated to have the house looking its best for potential buyers like I would.  

What are your experiences in trying to market & sell a house with tenants still occupying it?  

On another related note, this sale would subject me to long-term capital gains taxes since I've held it over a year.  If I bought the property for $100k & sold for $110k, would that subject me to the 15% capital gains tax on $10k even if my net profit ended up around $0 after paying out ~$10k in closing costs & realtor commissions?

Thank you in advance for sharing your thoughts.  

Brian 

@Account Closed What I admire most about your reply is your hustle & willingness to continue trying new things to gain traction on your leads.  I'm working to find which marketing channel is going to be most effective for me, too.  I know once I find it & develop consistency the results will follow.  Thank you again for sharing your experience at a similar stage of the business as myself.  

Brian 

Very helpful, Tyler. Thank you for sharing your experience so far. You provided some good guidelines to go by instead of a script, which I wasn’t looking for. Reaching 400 people early on is impressive. What method(s) of marketing are you using primarily to gain this kind of traction?

I'm at the beginning of my real estate journey & have run into some mental roadblocks in search of my first flip property.  I've fixed up my last 2 residences, so I'm comfortable w/the rehab process, & I have my financing lined up.  It's finding the deal & the off market conversation/negotiation that's causing me anxiety & holding me back, so I'm looking for some feedback to get over this hurdle.  

After gaining traction with an off market property (thru direct mail, for ex.), do you feel the person out for motive to sell in the phone conversation?  Do you ask questions about the condition of the house?  Do you ask how much they're looking for or do you set the tone by initiating what you think?  Or do you ask about the opportunity to take a closer look at the property before discussing price since the initial evaluation is very rough on direct mail?  Do you utilize a home inspection in this scenario?  Do you use a standard real estate contract w/out a realtor in this kind of off market deal? 

Your feedback is greatly appreciated.  

Brian   

Jorge Quintero very helpful perspective on things that can distinguish our mail pieces. Thank you very much!