All Forum Posts by: Ben McMahon

People are social creatures and its in our nature to have physical contact with one another.  Not sure when, but at some point people will stop social distancing regardless of the rules in place.  Thats going to piss off the other half that aren't ready for that, or are afraid.  I think the whole thing gets flipped.  Those in danger will stay in seclusion for an unknown amount of time and the majority will become immune and go back to work.

Not saying what's right or wrong, but that's my guess at what happens.  Only solution will be a vaccine, but I don't think that will beat peoples need to be social and of course their need for income.  

@Allan Smith

@Jay Hinrichs

@Patrice Boenzi

I think I agree with all of you, but still.  If there was ever a time for the "uber" or "air bob" of Real Estate Brokerages to make a big move and take over the industry, now would be the time.  You just never know when the market is ready for a big shake up.  

For years now, we have all known that a good portion of the traditional real estate agents job is unnecessary.  This is a heated topic for a lot of people particularly if you are an agent.  The best argument for the traditional agent in my opinion is that some individuals have the ability to be in the deal flow, have good relationships with vendors, lenders, escrow agents etc. and know how to negotiate on behalf of the client.  

Since everything has been moving remotely, the enormous fees agents have been getting has largely stayed in place due to the Lobbying powers of the NAR and belief that an agent can truly be the best financial option. Its taking awhile, but slowly over the last 10 to 15 years some of that has been chipped away. Discount brokerages, FSBO websites, etc. I wonder if this is the last straw?

My question, is this the end of the traditional agent?  If most everything is being done remotely right now, how long will it be before agents start getting cut out of deals?  I can guarantee there's not going to be many open houses this summer. LOL

Original Post title " Life isn't going back to normal anytime soon is real estate?" 

I'm wondering if its finally time for the shift away from the traditional Real Estate Agent?  I know there are a lot of agents on here, and I am not trying to ruffle any feathers.  I just think that's been lingering in the air for years now, maybe this is the time?  Maybe that should be another post topic.

@Matt R.

I got to thinking about that gut/data thing a little more.  I think your right.  Theres certainly some data mixed in with Gut feelings.  I just think that part is kinda interesting.  At the end of the day there's a bit of gut in everything, even if your gut is telling you to just trust the data.  haha.

@Matt Higgins

Thanks for getting the conversation started.  I've got a thought that's not backed up by any data.  I remember what it "felt" like after 9/11.  I remember what it "felt" like in both 2006 and 2008.  Specifically I remember 2010 when it felt like the country was at its lowest because we were already tanked, and it looked like we were going to continue to tank for years.

For me 2010 was a turning point because I "felt" all the fear and depression around me.  I bought my first investment property in 2010, and I sold everything in 2018.  Not based on data, but based on the attitude of everyone around me.  When everyone and their mom decided they wanted to flip houses, i knew I need to get out.  

What do you guys think about that?  How much of this game is GUT?  I would love to say I play my RE game by data, but that wouldn't be true.

@Nate Marshall

Thanks Nate, I will look you up if my funding doesn't come through for whatever reason.

I have raised money before, but its always been from investors that I know on an individual project basis.  What I don't know much about is starting a Fund.  I see there may be a good opportunity over the coming months and I want to get the money committed.  What does an offering like that look like?  

My idea would be to have myself and maybe another person or two manage the fund over the next 5-7 years when it may be a good time to liquidate.  The dollar amount I have in mind is about 50mil.  Asset class im still working out.  The money I have verbally committed.  I just want to present them with a valid proposal that looks profession , and have me understand all the legalities.  Which I don't at this point.  Any pointers would be great.  Im In SoCal

@Gregory Schwartz

I think you hit a keyword in your topic "coronavirus". Most of them time people don't get this sort of response.  

Its fun to go on a Rant, I might try a little one. Someone said on here that you shouldn't have quit your job.  And while that might be true on paper, I think sometimes it takes burning the ships to achieve the goal.  I'd even admit that my first thought was that it would have been nice for you to keep earning money while building a portfolio and not having to steal any left overs to live on.  

When I left my job, I had two rentals, and I knew there was no way I was going to make it happen if I wasn't  "all in".  The result.......everything moved a lot faster and escalated quickly.  I failed a lot faster, did WAY more deals (because I had to) and just got the experience on the job.  There are SOOOOOO many people that spend years researching, that overanalyzes every deal etc.  Truth is, if your willing to work, its hard to starve in this country.  Really hard. 

Lastly, most people FEAR failure, defaulting on mortgages, looking stupid, having their credit get screwed, owing a ton of money to the IRS, getting sued, looking stupid again, asking family and friends for money to hold you over for a month or two, ( looking stu.....),having their spouse loose faith in you, routinely over drafting on accounts, running up ridiculous credit card accounts and not being able to pay them off..............   Truth is that I did every single one of those things.  Its was embarrassing and humbling, and the best experience I could have ever asked for.  Today, no debts, no credit problems, no IRS problems, money in the bank, food on the table, wife still loves me.  Worse thing that can happen is that you die, and your not going to die.  Well, maybe......haha

@Gregory Schwartz

Hey Greg,  There's always an opportunity in the chaos.  My company recently shifted gears disinfecting Covid-19 contaminated areas.  Didn't see that coming, but when other things stop you still gotta move.  

When I left my job in 2013 I was confident that I was going to make money.  I did, but it didn't happen the way I envisioned and it took longer than I thought.  I thought I was going to be living off cashflow from the rentals I was buying.  Turns out those were pretty much a break even at best.  I ended up making money representing myself as the agent when buying properties.  I got 3-5k every time I closed a deal, so at my base I had to close one a month.  After that I borrowed money from investors and paid myself as the contractor on the rehabs.  That made up the rest of my income.  I had a property management company that ended up also a break even at best, but kept the cashflow going.  

All that to say, there are ways to make money as long as you pay attention to where its actually coming from and make sure you squeeze that lemon.  Not the dream of 10k a month passive income from rental properties.  Which I think too many people believe they will get to in the first year as a full time investor.  

I really didn't get paid till I sold all my properties in 2018.  IF you need any advice on other ways to make money let me know.  At least your in the game now.  You will figure it out.