All Forum Posts by: Brandon Vukelich

Thanks for sharing.  Not nearly as bad as we see in WA (especially Seattle) but disappointing policies for sure.  Hope this isn't a trend on where the state is heading but I've been worried with all the new residents coming from CA, WA, etc.  I picked Idaho a few years ago based on its landlord-friendly law.

Start by contacting a local real estate attorney licensed in the state you intend to do deals.  Use caution when looking for "free" or shared docs online.  There is a lot of liability in transacting real estate.  A good RE attorney should already have something to offer you or could draft one fairly quickly.  It may cost you a few hundred bucks but it's money well spent if you are planning to wholesale on a regular basis. A lawsuit will cost you much more than the money invested in a good PSA and assignment agreement. Best wishes!

It may be a "requirement" for their firm but it is not a state requirement. It's good to have one so it is clear about representation.  More info available at RCW 18.86.020.  Agents use them to get clients to show the client's commitment to the process as well.  Without an agency agreement, we (brokers) could spend months working with a client to help find the right deal, with no guarantee of income from a transaction, only to have them end up doing another deal (locally) with another broker.  I generally go on someone's word that they are willing to work with me exclusively and it has only burned me a couple times in the past.  Shame on me I suppose for being overly trusting.  When I do have a client sign an agency agreement, I let them know upfront that if they are unhappy for any reason with my service, we'll terminate the agreement.  No problem.  I'd never want to tie someone to work with me if they are not satisfied with my level of service or commitment to them.  Hope that is helpful.

When I had a property management company in Seattle, we started implementing RUBS for water, sewer and garbage on just about every MF property.  Not sure how large your property is but we outsourced it to a 3rd party billing company.  If you google "RUBS" you'll find a lot more specific info you're probably looking for to make a decision.  Best wishes on the deal!

Interesting thread, great feedback! I've been trying to get into Tulsa since last summer. I had a 16-unit under contract in July that turned out to be dud when I visited. Made an offer on a 8-unit while I was there but seller got cold feet. Prices and returns were more attractive to WA/ID.  I've owned in Boise since 2017 and Tulsa has that same growing vibe I got in Boise 5+ years ago. Research Tulsa's population, job, wage growth in the area. I also like that OK is a landlord-friendly state. 

I'm not concerned about tornados or crime much, it is what it is and there will always be pockets of rougher areas in cities that size. Again, do your due diligence in research. But one thing I learned is that bats can be a problem in the city and remediation can be expensive. That's not even on our radar in the PNW. I learned that by touring properties and talking to PMs. Best wishes in your REI journey!

Accept the fact that you won't likely hit a homerun on your first, second or even third deal but you will gain massive education through effective action.  I'm assuming you're looking at SF or 2-4 unit MF, not 100+ unit communities or something.  You sound like you've been analyzing deals, so you have experience running numbers or using tools.  You'll find it isn't rocket science on the small ones.  Verify income and expenses, what your financing terms will be, where are market rents, etc.  If the numbers work, submit an offer.  I have clients that have watched the market since 2016 and have missed out on hundreds of thousands (if not millions) of dollars in equity growth.  They always felt the market was too hot and stuck in their analysis mode.

1. How long did it take you to acquire your first property after beginning your education phase? - Less than 3 months.

2. What gave you the confidence to pull the trigger? - I knew that you can never "time" the market perfectly. Snooze you lose.  Markets will fluctuate but who cares if you're planning to hold long term.  If not, be more conservative in your analysis.

3. How would you recommend newbies shorten the time between education and deal #1? - Pull the trigger and submit an offer.  Even if you back out via a contingency.  Just get familiar with the process and understand that some deals will be dogs while others will end up being stellar opportunities.  Nobody bats a 1000 and that's ok.

Best wishes in your journey.

I'm not aware of any successful business strategy that involves ZERO dollars for startup or marketing.  Even if you intend to network, you'll want to budget a few bucks for a coffee or beer here and there.  Driving for dollars still involves gas money.  Starting and running a business involves a budget, even a small one.  This is one reason the wholesale space has become so crowded.  Many have the hopes of jumping in and growing a business without the need for any working capital.

As a sidenote to the discussion, I disagree with using publicly available agreements.  You're operating in the real estate space.  You're not selling candy bars or a used car.  There is a lot of laws and liability involved.  Only use docs specifically related to your state.  Ideally, hire a RE attorney to review or craft your purchase and assignment agreements.  Best wishes in your journey!

I was somewhere around $100k/year when my CPA told me to elect my LLC as an s-corp. Saved somewhere in the neighborhood of $10k the first year in taxes. You will need to take a "reasonable" salary. My wife is a stay-at-home-mom but she is a member of my real estate LLC so it pays her $50k/year. We pay quarterly payroll taxes to ensure we don't have a giant payment due come tax time. Regarding the car, I just deduct miles. Again, advice from my CPA based on the 18k-21k I drive each year. Good luck!

Reposting my reply from similar post recently...last July I met with Bailey-Foristell, old school father and son team, small office, long history in the area. I also met with Key Renter. Super tech savvy, manages in other OK markets as well. They both have their pros/cons, depends what you are looking for in a team. Good luck!

What @Robert Carmody mentioned was solid.  I'll just add that you are better off using whatever marketing funds you've budgeted to invite people in your sphere out for coffee, a light lunch or beers/wine after work...or host a happy hour for a dozen or so people. Better for you to network face-to-face. Your goal right now should be to have conversations about real estate (buying, selling, investing, etc) with a handful of people every day. Build up your sphere/network as quickly as possible, fill that CRM. Follow the 36 touch rule taught by KW (look it up). If you're not that much of an extrovert, focus on creating videos to post on Facebook, Insta or a Youtube channel. Not sure where you are from or what you intend to focus on but pick a neighborhood and instead of sending coupons for businesses, go out and shoot a video with local business owner to highlight them to your sphere. Share why you like the business, what they offer and why everyone in the "neighborhood" should check them out. That's free, just takes time and effort and that content will be out there forever. Best wishes in your RE journey!