All Forum Posts by: Ben McMahon

@Madison Martindale

Hey Neighbor, I'm also in North County.  Everything that everyone has been said is solid advice.  I moved to SD a year ago.  Its a different strategy investing in SoCAl.  Theres no such thing as cashflow here.  Unless you refer to Negative Cashflow. Ha.

That being said, there are certain advantages to investing near home.  If you really want to learn, you need to get your hands dirty.  Go through the process yourself of managing the property, dealing with Tenants and all that.  After that, it will be a lot easier for you to invest out of state knowing what questions to ask PM companies etc.  Out of state, this is a great place to VET a turnkey provider.  I agree with @Soh Tanaka.

If you want to chat more, just DM me.  

We do a lot of work with PM companies in San Diego.  Many of the site managers aren't coming into work, and I've seen a pretty steep slow down in calls.  On the Residential side I think its just going to depend on the homeowners but my guess is that a large portion do not want contractors near them.  Or anyone for that matter.

@ ALL - Thanks for the input.  Appreciate it greatly.   Years ago I would have put money into this idea.  Fortunately I was putting money into deals instead.  I'm usually a little too early to the game on my ideas, so its helpful to know this one still isn't a popular one.  

Well, the good news is when we see the headline " Tech Giant Revolutionizes RE Industry" Or "Big Box Realty is the new Uber of the RE world" we would have all learned something.  But, we probably won't.  Every RE Agent will explain to me how they are really just doing the same thing.  Only difference is they "drive their own cars".  

Sorry maybe that's true it won't be a massive difference, it probably won't be.  But sorry, you're now driving Uber not working for yellow taxi anymore.  Sorry, Remax, Keller Williams, Century whatever, your people now are all "agents" for BB Realty.  Or actually work in the sales department, or marketing department.

I want to restate what I've been saying.  Lot of agents jumping in saying how much they are worth.  Thats true in the current environment.  I brought up "Traditional Agent" for a reason.  

Anyone remember that movie "you've got mail"?  Meg Ryan owns a little book store, and Tom Hanks is the Big Box Store that moves in next to her and wipes out her business.  I remember how the little store people were talking about how special they were and the value they added.  In the end, they finally went out of business and went to work for the Big Box store.  They found out that it wasn't as bad as it seemed, because in the end they were still selling the same books.  Regardless of their own and their buyers sentimental reasons,  People were still getting the same joy out of reading them.

I'm sure someone is about to say why that's different, but my point is that regardless of our own long history of buying and selling Real Estate, we are selling an inanimate object.  Theres no reason why they way its always been done, will never change.  

@Account Closed said.  His wife doesn't have to send listings necessarily anymore.  

So lets say we have a slow shift over the next 20 years and what I am talking about comes to fruition ?  3 years from now the common listing commission is 4%, and buyer and seller use a shared calendar.  8 years from now the commission is 3% and the common practice is pre inspection, pre appraisal's.  15 years from now, you never actually meet the real estate agent.  HE/SHE is partnered with a conglomerate of home inspectors, appraisers, lenders who sell their services together.  20 years and the conglomerate is now one company and they guarantee no problems for 5 years.  Price is what it is?

I'm really in the minority here.  Maybe I'm drinking my own kool-aid.  I'm just not convinced of the necessity of an agent.  If there is a platform that literally guarantees both sides of the transaction @Robert C.

People that don't like to haggle and just want something quality at a fair price would love this.  Can nobody else see this?  And not just because it hasn't happened.  No Agent needs to open the door, no agent needs to line up inspections, lenders, title companies.  Its all right there.  On the seller side, you are going to get a fair price.  Not top dollar, not bottom dollar.  Buying a house does not NEED a human touch.  It just always has had one.

@Jay Hinrichs I know Real Estate is not a car.  But the transaction could potentially be similar.  What you are describing with a Tesla is like having a home built for you.  Not all that different if you already know what you like.

@Account Closed  I also use real estate agents.  Even when I had a license.  For their expertise.  But as been mentioned on here a bunch of times, the common buyer/seller only does this a few times in their life.  

So lets say they have the option of finding a "trustworthy" agent to handle everything, or going to the big box store and getting something that's guaranteed.  I think a lot of consumers would go to the big box store.  

Also, side note people keep saying its never happened so it never will.  That theory has been disproven more times in history than we can count.  And its not usually the first company that tries to make it either.  Maybe its the 6th or the 10th.  Remember myspace?  Nobody does.  Remember Redfin?  Nobody will when it happens.  

I agree this conversation has been had many times in the last 10 or 15 years, I bring it up for fun.  And because things do change and happen when there is disruption.  We are experiencing disruption

@Jay Hinrichs They do at carmax.  Hows that different?

Maybe Im not making myself clear.  An agent is currently necessary for a deal to happen. YES.  I can see a way where that isn't the case.  If im the new buyer that is "ignorant", I can buy a house from a place where All the lending, ALL the inspections, ALL the title work, yes even the price is all done and set.  I know what I am getting and I am happy to pay for it, because I know I am not getting screwed.  Its all part of the package.  My "AGENT" is just someone that works for this company that virtually does a similar thing as the traditional agent, but does a lot more volume, makes a lot less money, and is completely replaceable.  

@Jay Hinrichs

But in theory, couldn't all that be done with a carmax type of service?  House has some sort of extended warrantee, fixed non negotiable price, As long as you qualify........ good to go.  property already has the well, septic, home inspection, title, its all been done and all part of the package.  Anything happens, your covered.