All Forum Posts by: Casey Powers

 
Not one person has bashed you here. If your attitude here is how you approached the agents who blew you off, then it’s clear why they didn’t want to spend any time on you and simply chose to brush you off. Without any offense intended again. 

@Ryan Stumbo LOL I didn’t call you any names. Yeesh. 

LOL ooohhhhhh kaaayy. If you think a little constructive criticism is “rude” when you asked questions and clearly made some mistakes, then I consider that your problem. 

@Ryan Stumbo doesn’t matter how many properties you have or any of that other stuff. You came here asking questions and wondering why agents weren’t taking you seriously and I answered that question in particular. What seemed unrealistic was the way you approached the situation. You sent a rental spreadsheet to criticize listing prices on residential property, and in a super hot market. To most agents that just screams “timewaster” who doesn’t know what he’s doing. Again those properties are priced on comps not rental numbers, and it doesn’t matter if you don’t agree with that - that’s how it’s done. I didn’t say that to offend you. I said it to show you where you made mistakes and why the agents responded the way they did. If you can’t take a little constructive criticism (and you’re obviously very quick to dish out criticism in a market you don’t know), then you might need to grow a thicker skin if you want to do real estate long term.

@Ryan Stumbo bluntly, based on your initial post I would say the realtors saw you as an unrealistic buyer (aka, timewaster) and that's why they blew you off instead of trying to explain further. Anyone criticizing list prices on residential property in the current market is not taken seriously, but even moreso when they justify the critique with rental numbers. Those properties are priced on comps, not rental numbers. If you want to be a hotel operator you could make the money on STR, but they are absolutely right; you're not going to get the returns you want on a long term residential rental property in that area. At least not in the current market.

Also your descriptions in other comments aren’t that great in terms of letting an agent know what you’re looking for. It sounds like someone with unrealistic or unclear goals and at the very least, more work to figure out what you want. In such a tight market, most agents won’t be terribly interested in spending time on someone who doesn’t seem to know specifically what they’re looking for. Some will, and some may be tight here in this thread.

Las Vegas and Phoenix markets are pretty similar in many ways. 1/3 of all homes sold in Las Vegas in the last year were bought by hedge funds, and that is increasing. These ibuyers are OVERPAYING way above comps in a race to buy up market share. I guarantee they have comparable numbers in Phoenix. The agent is absolutely right that a lot of “institutional” buyers are driving up prices there, just like they are here in LV. That’s your biggest competition as a buyer. They basically write offers on every listing that comes online these days.

Sellers don't care one iota about your numbers - show them the money or they're not interested. Most will probably just laugh at your spreadsheet. Even if a property has been on the market 120 days, they're not going to take a lowball offer. They may eventually sell for less than they're asking but if it's on the MLS you aren't going to get it at a price that provides an 8% return unless you're doing something other than a traditional long term rental. Way too much demand for homes in these areas for that. You could make your numbers if you can do STR or such.

Some properties are listed for other reasons. There’s an agent here who always has several listings that have been on the market for a long time, often a year+. When I ask about them they’re suddenly “off the market” and then back online a few days later. Clearly just using them to fish for clients.

I’d have my used appliance vendor bring a refrigerator within a day for less than $400. Often trying to fix an old appliance is so expensive you might as well buy one anyway, plus many parts are unavailable these days.

^ Yelp only takes reviews from tenants and not owners? FALSE. Their algorithm does not hide a review because it’s from a property owner. More likely to hide reviews from out of town people but not always. More likely to show reviews from locals but not always.

@Jay Hinrichs LOL. Ya but it’s not like wholesalers are actually held to any standard at all, like realtors are.

Managing the rental is mostly the same work no matter what, with the exception being that it takes a lot more work to deal with crappy properties in crappy neighborhoods but owners of those properties never want to pay enough to make managing them worthwhile. For the typical decently maintained SFR it doesn't matter if the home is brand new or 20 years old - no significant difference in work and no rate difference. The typical "new build" renter is more high maintenance even if the property isn't. Haha