All Forum Posts by: Chris Kendrick

Chris, you have a horrible mentality, dismissing people who have been very successful in the RE space. You won't succeed in this business, so you might as well get off this site & stop wasting everyone's time.

No offense Chris, but I've seen several of your posts floating around the BP forums over the last month or so, and based on your negative and defeatist attitude in the face of the plethora of information at the tips of your fingertips with the search function, and also the fact that you keep swatting away advice that is literally being spoon fed to you, I'm not confident that the RE space is right for you.

Quote from @Chris Kendrick:

Quote from @Randall Alan:

Quote from @Chris Kendrick:

just starting out, and thinking about getting into real estate but the more and more i look online of how many properties are for rent and for sale is amazing,  there are tons and tons of properties for rent and sale around my area and the bigger cities where i live thats its crazy, alot of them looks like flips and brrrr method used, so how in the world can someone get in this competitive space, and i have seen some of these properties stay on the market for awhile also , like 5 months, anyone else seeing this 

@Chris Kendrick

Chris,

A quick story… an instructor I work with has a saying…. “You will either find a way to make it happen, or you will find an excuse to not do it.”  The instructor isn’t even in real estate, but I feel like this quote is appropriate for you.  You are looking for all the reasons why “it” won’t work, when everyone around you is like “It totally works”.  
Yes , until interest rates come back down it is hard to make deals work right now… so short term it is more ‘hang tight for the market to adjust / correct”.  But it just seems like you are trying to talk yourself out of the game.  If that is really your perspective, maybe real estate isn’t your game.  There is nothing wrong with that.  

If you simply focus on the “challenges” as you see them, you won’t find a way to make it happen.  The challenges you are quoting really aren’t any different from any other time in the market.  There is always a supply of houses.  If there is more supply… there is more supply.  That’s really not a reason… just an excuse.  Some  houses sit on the market… maybe because the flippers are looking for a certain profit level… maybe because they spent too much and the market turned and they would take a loss at this point.  As an investor, I’m looking at my properties.  I really don’t care how many others are on the market… it’s much more important to look at the sold properties.  As long as mine is priced in line with the recent sales in the same area mine should sell.  They will sell faster the lower the interest rate goes because more buyers will be able to afford more house.

So either choose to find a way, or look for the excuses… each will take you to where it is supposed to.  My train of thought for you on supply would be “Ok, I know there are more houses on the market right now, but houses are selling at $XXX/sf on a regular basis in my area, so as long as my sales price is at or below that number for a comparable house it should sell.”  Point being: acknowledge the challenge, and then acknowledge how you will still be able to make it work in spite of the challenge.

All the best!

Randy 

Not trying to talk my self out of nothing, but would you be worried if houses and houses for rents been sitting on the market for more than 3 months

 @Chris Kendrick

Every area has houses that sit like that.  Unless you go visit the property or do your research you won't necessarily know why... but there is almost always a reason... poor layout, bad neighborhood, poor condition, over-priced, dilapidated, or any other reason... in the end it doesn't matter.  What you AREN'T looking at is all the houses that actually sold, it seems to me.    Again... the houses you are finding is because you are looking for houses on the market.  Therefore that is what you are going to find... houses on the market.  If you need encouragement, you can go find the ones that sold on Zillow or Redfin, etc by turning on the "sold" button... and you will see hundreds of yellow dots in your city that were sold (would be my guess). 

I myself had our last flip that sat on the market for several months.  That was the market telling me that my price was too high, but I didn't want to sell it for less.  What had happened is that we started it before the interest rate hikes, and we were the most expensive house in the neighborhood.  I didn't want to take less... so what did I do?  I turned it into another rental in our portfolio until the markets resets after the high interest rates.  You do what the market tells you to do.  

Randy

Hi guys, I'm a new investor from California looking to buy rental properties out of state but I've recently noticed that I've been starting to psych myself out the closer and closer I get to buying my first rental property. I've been studying Real Estate for about 4 years now and feel that I am ready as I'll ever be to purchase my first property. Lately though I've been questioning myself if I should wait until it becomes more of a "buyers market".. I know there is never going to be a perfect time to jump into real estate but sue to rising interest rates along with other factors history shows another market correction expected to happen within the few years. I'm not sure if I'm getting in my own head or if I'm overthinking things. Any advice would be greatly appreciated!

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Quote from @Bob Stevens:

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Quote from @Bob Stevens:

There are tons of properties in my market. But yet i  still do 4 to 5 meals per month I’ve done 500 overall. it’s all about your network. And I never buy anything online all deals are off-line.

There are some good one online , that i have seen, i guess your going through a wholesale company or on a list for one

  I can get as many as I want, I get them from my network, The good deals are not online, 

All the best 

 Network? Whats that

 really?  All the best to you, 

Quote from @Chris Kendrick:

Quote from @Bob Stevens:

There are tons of properties in my market. But yet i  still do 4 to 5 meals per month I’ve done 500 overall. it’s all about your network. And I never buy anything online all deals are off-line.

There are some good one online , that i have seen, i guess your going through a wholesale company or on a list for one

  I can get as many as I want, I get them from my network, The good deals are not online, 

All the best 

Quote from @Chris Kendrick:

just starting out, and thinking about getting into real estate but the more and more i look online of how many properties are for rent and for sale is amazing,  there are tons and tons of properties for rent and sale around my area and the bigger cities where i live thats its crazy, alot of them looks like flips and brrrr method used, so how in the world can someone get in this competitive space, and i have seen some of these properties stay on the market for awhile also , like 5 months, anyone else seeing this 

@Chris Kendrick

Chris,

A quick story… an instructor I work with has a saying…. “You will either find a way to make it happen, or you will find an excuse to not do it.”  The instructor isn’t even in real estate, but I feel like this quote is appropriate for you.  You are looking for all the reasons why “it” won’t work, when everyone around you is like “It totally works”.  
Yes , until interest rates come back down it is hard to make deals work right now… so short term it is more ‘hang tight for the market to adjust / correct”.  But it just seems like you are trying to talk yourself out of the game.  If that is really your perspective, maybe real estate isn’t your game.  There is nothing wrong with that.  

If you simply focus on the “challenges” as you see them, you won’t find a way to make it happen.  The challenges you are quoting really aren’t any different from any other time in the market.  There is always a supply of houses.  If there is more supply… there is more supply.  That’s really not a reason… just an excuse.  Some  houses sit on the market… maybe because the flippers are looking for a certain profit level… maybe because they spent too much and the market turned and they would take a loss at this point.  As an investor, I’m looking at my properties.  I really don’t care how many others are on the market… it’s much more important to look at the sold properties.  As long as mine is priced in line with the recent sales in the same area mine should sell.  They will sell faster the lower the interest rate goes because more buyers will be able to afford more house.

So either choose to find a way, or look for the excuses… each will take you to where it is supposed to.  My train of thought for you on supply would be “Ok, I know there are more houses on the market right now, but houses are selling at $XXX/sf on a regular basis in my area, so as long as my sales price is at or below that number for a comparable house it should sell.”  Point being: acknowledge the challenge, and then acknowledge how you will still be able to make it work in spite of the challenge.

All the best!

Randy 

Quote from @Chris Kendrick:

Quote from @Nicholas L.:

@Chris Kendrick

that's why i asked you to clarify - you said "how in the world can someone get in this competitive space"

i didn't know whether you meant buy, or sell or rent

my rentals are rehabbed, high quality, and priced competitively, and I allow pents - so they rent quickly

i don't flip so can't answer that for you

 So i assume your area is not like mine in NC where there are ton and tons of houses to rent?

I have maybe 26 SFH rentals in NC. I post on Zillow, get around 50 responses over a few days, heavy phone screening, show to 3-5 parties.  Usually have signed agreement within 10 days of posting.  The last new construction I just finished was rented unadvertised 2 months before completion.
If there are 'tons and tons' of house available, it's never affected me. I can beat the big guys all day long on tenant selection and price. 

Quote from @Chris Kendrick:

Quote from @Randall Alan:

Quote from @Chris Kendrick:

just starting out, and thinking about getting into real estate but the more and more i look online of how many properties are for rent and for sale is amazing,  there are tons and tons of properties for rent and sale around my area and the bigger cities where i live thats its crazy, alot of them looks like flips and brrrr method used, so how in the world can someone get in this competitive space, and i have seen some of these properties stay on the market for awhile also , like 5 months, anyone else seeing this

@Chris Kendrick
Your premise (tons and tons of real estate) neglects the fact that there are tons and tons of buyers as well.  Just like there are tons and tons of cars (usually) on a car lot.  That gives people choice.  The 'catch phrase" I learned a long time ago from a friend of mine in the used car business was: "There is a butt for every seat."  When you look at the stratification of houses... be it by house size, house price, house condition, house location, and so forth... each of those strata appeals to a different segment of the market.  A Class "A" person isn't going to usually buy in a Class "C" neighborhood. 

There will always be supply, and there will always be demand.  In between those two things is the price of the property, the location, the caliber of the house, the neighborhood, etc.  Just because you see a lot out there doesn't mean you can't get into the game.  Eventually everything sells at a price the seller was willing to take, and the buyer was willing to pay.  The reason things sit on the market is because of differences in expectations between the buyer and seller.  If you price a house right (read: at a price the market thinks is a fair price), it will sell quickly.  If you try to squeeze more out of your property than the market thinks it is worth, it will sit there.  Eventually those two figures will merge either through price appreciation in the market, or the seller reducing their price and then the  property will sell.  It's just the way pretty much every market works.  

Your perspective is one from a position of doubt.  You should listen to the position of all the players who are 'in the game' and take it from them that real estate is a great business to get into.  In 5 years we have managed to acquire over 45 rental units.  We have sold some of them for great gains while the market was hot, and we now have 37 remaining units.  Our portfolio value has gone from $1.5 million to over $6 million in 5 years - and we are 'mom and pop' landlords (ie. just myself and my wife, who self-manage all those units, while doing a flip here and there as well).  We went from working two full time corporate jobs, to full time landlords at the point we had about 20 rental units.  Point being that we self-managed 20 units while still working regular 8-5 jobs.   Managing properties is really pretty easy on a day to day basis.  We can manage 95% of it from our phones.   The market is tougher right now, but that doesn't negate the fact that it is still a great business to be in, and when interest rates calm back down, the market will start to rev again... whereas I see it as sort of idling right now.

All the best!

Randy

 Not when alot of properties been on market for more than 3 months, how long does it take you to get a renter in, in this market, like with in the last year

@Chris Kendrick

 You only need one thing to get a renter:  Zillow.com.  If I turn on my marketing on Zillow... within 24 hours I will have 30-50 inquiries on the property.  From there you obviously have to vet the prospects, have them fill out an application, etc.  We usually only run our Zillow ads for 1-2 days because we are so inundated with inquiries (It's almost overwhelming!).  We can usually have a renter in a lease within 72 hours of listing a property... they would move in usually about 2 weeks later.  It's SERIOUSLY that easy.  We use Rentec Direct (online property management software) which broadcasts to 20+ sites.  Can't say enough great things about it.  Advertising on Zillow (for us) costs a few dollars a day because of the affiliate relationship (ie. we do it through Rentecdirect.com)... sometimes it is free going directly through Zillow (last time I looked)... but it is so easy and so cheap to do it through the software we don't fret the $5 it costs us to get a tenant.

All the best!

Randy