All Forum Posts by: Caleb Brown

Quote from @Blake McWilliams:

Quote from @Caleb Brown:

3K flat fee is reasonable. An agent is going to spend the same time on a 72K listing and a 200K listing. Our brokerage charges $495 to the broker/admin fee. Some agents will do 3% but asking anyone to do 5.5%(2.25 to each side) is not going to be attractive. I would focus on finding an agent that knows what they are doing and will get it sold, not on the cost. 

 Hey Caleb!  As a rural agent not near a metro area can you shed some light on your stance?  Has the metro inventory recovered enough as to where you're able to still charge a premium like 4% to one side as this inquiry refers to?  I do understand being selective on the type of buisness you take, but as an agent we still have a fiduciary duty to our clients to make sure they receive the level of service this price requires.  Thanks!

 Not sure where you are getting 4% to one side. Post was referring to 5.5% for both sides so it'd be split in the middle to the listing agent and buyers agent.

Quote from @John Clark:

Quote from @Caleb Brown:

3K flat fee is reasonable. An agent is going to spend the same time on a 72K listing and a 200K listing. Our brokerage charges $495 to the broker/admin fee. Some agents will do 3% but asking anyone to do 5.5%(2.25 to each side) is not going to be attractive. I would focus on finding an agent that knows what they are doing and will get it sold, not on the cost. 

"Some agents will do 3% but asking anyone to do 5.5%(2.25 to each side) is not going to be attractive."
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Which, thanks to brokers fulfilling their fiduciary duties to their clients, would never be a problem, right?

 Duh. I am saying as a listing agent I would not take on a listing at that price point offering 2-2.5%  for a buyers agents on a 72K listing.  Others agents will

3K flat fee is reasonable. An agent is going to spend the same time on a 72K listing and a 200K listing. Our brokerage charges $495 to the broker/admin fee. Some agents will do 3% but asking anyone to do 5.5%(2.25 to each side) is not going to be attractive. I would focus on finding an agent that knows what they are doing and will get it sold, not on the cost. 

There are plenty of hard money lenders out there to fund your projects. I would network in person or in FB groups. 2-3 months to close is crazy. Most hard money lenders can close in 1-3 weeks. With you being a GC you can do better then most investors since everything can be done by you and not hired out.

If you are going to pull a HELOC I would target a BRRR or flip so you can for sure pay the HELOC back. The risk with BRRRs and flips is they are riskier. A lot of things can go wrong and there is more moving parts. If you have a solid team and some money set aside it's doable

Quote from @Daryna Misechko:

Hello, my name is Daryna and I am a sophomore in high school and I have been interested in real estate for a very long time. I have been reading books about it, listening to podcasts etc. I am planning to get my license as soon as I turn 18 and I was wondering if there is any way I can get involved in real estate while being under 18 and with no license but I also want to get paid?

Our team works with the school district about interns. We have 2 that are helping currently. Gives you experience and a feel for what's involved. Not sure if you can reach out to a few teams/agents and go from there. Might take a few tries but you'll be able to connect with one. 

Happy to connect you with one. 64130 does have some rough spots so be careful who you hire around that area

Quote from @Justin Pumpr:

Thanks all for the posts! Definitely some good advice in here. I did manage to get the flip rented out on a lease option. While I will still lose money on it in the long run, I'm at least breaking even on it monthly and no longer have the headache of it. 

Ironically, I was ready to let go of multifamily and focus on more lease options, but then my team finally got an offer accepted on a 54 unit. I have mixed feelings about it, so we'll see where that goes.

Fortunately over the last 6 months we have been able to pay off a decent portion of the debt, so things are starting to look up. 

In terms of getting a mentor, I had one of those and paid $18k for the privilege. His advice (before the debt issues even arose) was to sell my whole portfolio and start over doing wholesaling. He also said he'd help me acquire large multifamily, but then had never even heard of Crexi, or Loopnet and had never owned anything larger than a duplex. 

 Glad to see things turn for the better. Sometimes everything hits the fan at once. Definitely be careful on the 54 unit. It's great to scale but don't add doors just because without doing your due diligence. 

Quote from @Andrew Thomas:

Quote from @Caleb Brown:

I would focus on being an agent first and building that business. It takes 2-3 years to get it off the ground and adding investing in the mix would be too much. Being 19 you have plenty of time. Build your database and clients. Save for a house hack in the meantime. Focus on having a budget and having a strong financial base

 Thanks! Good advice, Do you have any tips for me to build my database more and build my cliental? Im in college so I meet new people everyday and that alone is a huge resource. Any other ideas would be awesome!

 One of the best ways(not the most exciting) is cold calling owners. You can target certain niches. You can attend and be very active at networking events. Open houses. Building a social media presence. There is many different ways, key is being consistent.

I would focus on being an agent first and building that business. It takes 2-3 years to get it off the ground and adding investing in the mix would be too much. Being 19 you have plenty of time. Build your database and clients. Save for a house hack in the meantime. Focus on having a budget and having a strong financial base