All Forum Posts by: Brandon Vukelich

I've been a BP Featured Agent for many years, targeting multifamily investors and house-hackers. It has taken some fine-tuning of my profile but for me and my market, the leads have been an incredible source of revenue, especially since 2020. I only pay for BP leads and all other business comes from my sphere/referrals. I'm convinced that making tweaks to my BP profile along with actually being a multifamily investor myself contributes to my lead conversion success. I still get junk leads but that is to be expected on just about every online lead platform. In 2024, I noticed an increase in BP leads that have been high net worth investors reaching out wanting to 1031 into bigger properties. The lead avatar will be different for every market. For me, over 90% work in tech and have $150-500k for an acquisition and...99% of the leads are buyers. I've only had one listing transaction from my BP leads.

Most are complete noobs or have limited REI experience with a rental or two. They take a lot of nurturing, educating and patience. I have a 3-step process I put them through before we actually agree to work together. Most take 6-9 months to find the right asset to buy but occasionally some convert within 90 days. Plus I have many repeat BP leads/clients.

Definitely think it is a step in the right direction and hope more states follow. Although in WA, is it pathetically easy to get licensed so it may not solve much here if we went that route. I have no problem with wholesaling and do it on occasion myself but I hate hearing stories of elderly or clueless people being taken advantage of by some skeezy wholesalers. When I meet with property owners, I give them all the options: quick cash sale, seller financing, list it publicly, etc. Most only talk to one wholesaler and think a quick cash offer is their only solution, usually leaving way too much on the table.

Ditto @Nathan Gesner. Regarding the original post, there is no "status quo" for compensation or terms. To each their own. For me, it is very client specific. That is how I've operated for years, well before the NAR fiasco and as agents, we have always been advised from referring to status quo, standard, typical, etc when it relates to commissions.

It continues to amaze me how many buyers/investors believe the agent value is finding them "deals." That should rarely be the priority in the agent-client relationship and what makes a "good" deal is a relative term. I realize many opportunities lately are going to be found in our MLS, Zillow, FB groups, wholesalers' distribution lists, etc. I'll send my off market or wholesale deals to non-exclusive buyers but only after my VIP list of buyers/investors have had a first look and decided to pass. This is a two-way relationship business. Unless you're a very seasoned investors, the value in committing to the right agent should be in their vast local market knowledge, expertise of their lane, transactional experience and so on. I'm not just paid to help navigate the 15- to 90-day transaction but the value comes in the 15 years as a licensed broker plus the 20+ years as an investor. Being a solid investor friendly agent doesn't solely rely on pitching people off market opportunities.

Thanks again @Michael Baum. Yes the lack of identical apples-to-apples comps has been an issue in the area for years. Appreciate you taking a quick look but Steilacoom is a different market than North Tacoma. The unobstructed water views for both front STR units can be challenging to determine additional value compared to other 3-unit properties without views. With the massive increase in STR properties in the US, I am hopeful that lenders and appraisers will evolve to apply income/exp metrics to STR deals specifically, on top of generic property comps.

@Nathan Gesner Yes, I'm fairly confident if we were to hold long term, we'll do just fine. I want to exit as I don't get any personal use from the STR being 20 mins from home and would rather apply the capital to another opportunity in multifamily (LTR) or another STR in Hawaii where my brother is a broker and now manages STRs. My regret is not buying one in Hawaii or somewhere else where my family could spend some vacation time. Plus STRs are not the model for me. We bought it because it is a beautiful property in solid location and I wanted to learn the STR model. It's too much like the hospitality business rather than a rental. If I didn't have two amazing biz partners, I would have already likely sold it.

BTW, I could have mentioned earlier, when we refi'd in 2022 the appraiser came in at 1,300,000 and verbally told me that he struggled as he believed the property was likely worth more based on the location, views, income. I was able to push back and provided more data, he adjusted to $1,335,000.

@Michael Baum yep, we're good. Just looking to sell in the near future and trying to wrap my head around what a potential STR buyer will expect. If the $107k NOI was an 8% return, I'm looking at a rough $1.33MM value, possibly?

@Bonnie Low I was not including debt as I want to know how a cash buyer would look at the deal. Yes, our prop taxes went flat in 2022 but ramping back up again.

@Nathan Gesner See above. I removed our debt (P&I) all other expenses have been factored. We purchased for $1.1M in 2020. It is a unique property with unobstructed water/bay views in the best neighborhood of Tacoma. I'm a broker and can run comps all day long for straightforward LTR properties, I know small multifamily in our market. I'm just not a pro at STR valuations. As I mentioned to Michael, I'm attempting to see if our returns and operations are relatively inline with the expectations of experienced STR operators. We would like sell when we believe the value is close to $1.4MM or better.

 I second Flynn Family Lending. Great people.

Curious how our self-managed 3-unit STR/MTR performs with industry expectations. Front two units are full time STRs with a rear studio operating full time MTR. We're looking at 2024 gross around $187k with NOI at $107k. Seems a bit high on the exp ratio near 43% but we do pay a premium for our solid cleaning lady, she also stocks supplies, runs errands and other duties for no "extra" charge. No surprise but property taxes (up another 16%), insurance and utilities are all bumping significantly. Other than comps for 3-unit properties (which are typically not furnished and operating as STRs), how would most seasoned STR investors look at valuing the property?

I'm a MF broker working in the 2-20 unit space. I know seller financing and it isn't clear how you define "good" creative terms. Most sellers I know are stuck in 2021 pricing but want 2024 rates. If I have a deal with decent seller financing terms, it will be sold pretty quickly to one of my buyers and not to a wholesaler who can't prove they can close and/or they are the end buyer. You may find a deal for yourself to own but I'm not sure how many you'll have a chance to wholesale. Best wishes on your plans!

Hey Erik,

The Bremerton area has definitely experienced growth like many areas of the greater Puget Sound region. The downsides are that rental demand can ebb and flow with military and some parts around downtown can be a little "rough" with homelessness, junk. As you've been watching, tough to get into a duplex or small MF in King Co under $700k-ish. Kitsap and some parts of Pierce offer opportunities under $500k but it really depends on the neighborhood, property condition, etc. Most deals are going to look pretty challenging from day one as many are underperforming and have deferred capex needs.

I'm happy to help with valuations and rent data if you need it. Best wishes on your journey!

#4 in your top list never ceases to amaze me. If business is slow, plan a vacation. Business always tries to disrupt my vacation plans. I can plan trips a year out and it will likely coincide with an active deal that needs more guidance than my asst can provide.

I would add a #6 to your list of positives - FREEDOM! We do work crazy hours sometimes but my schedule is mine and there is no limit to the income I want to pursue. I can be lazy and earn $40k or crush it and go for $4MM. We don't operate within a salary cap.