All Forum Posts by: Cody McGuffie

Wow! Thank you for all the great responses - very helpful. 

Curious - if you sold your house FSBO and DIDN'T offer to pay buyer commissions, (buyer would need to add the agnet fee onto my PP) what do you think the result would be? Do you think buyers would really care? Do you think agents would steer their buyers away from the home?

(Assuming A-B+ location, pretty high demand (SD), affordability (400k-500k)) 

I'd imagine market conditions would dictate..

@Bob B. Thanks for the great feedback!

@Bob B. Perfect - thanks for sharing, that's exactly what I was thinking of doing. Did they throw a fit over that? and any issues with the process you wish was easier? (example - contracts, title/escrow, anything?) Does anything turn you off from doing that again?

Thank you for the responses everyone - all very good points! I really appreciate it!

@Bob B. - did you offer the buyers agent a commission? How did your buyer like the process? Why don't more people do this? What were your biggest hurdles - paperwork? 

@Brian Pulaski

@Brian Pulaski - Thanks for the feedback! Why not just use Zillow and bypass the MLS, price it a little lower (justified with no comm)? What do you think would happen if you didn't offer buyers agent fees and plan to have the buyer come direct? What were your biggest hurdles with FSBO sites?

Hi Everyone! Background: - Investor for 3 years (multifamily and sfr flips) - unlicensed (nor do have any desire) - San Diego, CA Market Quick question for you, have you ever FSBO? If so, how’d it go? Did you offer the buyers agent a commision? Would you do it again? What we’re the biggest challenges? If you haven’t FSBO - why not? What makes agents so valueable that it’s worth 20-30k of your equity? (500K AVG PRICE) THANK YOU FOR ANY RESPONSE (FROM AGENTS/BROKERS TOO)! (ALSO, I VALUE AGENTS VERY MUCH AND DONT MEAN TO OFFEND, JUST CURIOUS THANK YOU!

UPDATE to close this out: I flew to Altus, OK. San Diego>DFW>Lawton, OK> Drive to Altus, OK (55 miles). I like the town, growing Air Force (new fuel tanker coming in), and growing little economy, and nice people. Ended up pulling out of the deal, though, unfortunately. 

Reasons: 

1. Was expecting 18 rent-able units, and there were only 17. With estimated repairs to get that unit performing, the numbers didn't make total sense. Yes, I could have re-traded, however, I didn't want to beat the seller down and eventually pull out anyway due to #2 below.

2. Property Management- met with a few different folks and found that they were capable and trustworthy, however, they required more hand-holding than I was prepared for. Numbers didn't justify onsite management. Property management service companies didn't want to manage 18 units (interesting thought to turn down guaranteed business- I was surprised). 

Overall, it wasn't an easy decision to pull out. It came down to personal feeling, and logical NUMBERS. We all know how time intensive (and expensive) the DD process can be for everyone (seller, broker, and buyer).

What I learned about Altus, OK:
1. Small but growing economy. 23K population. Projected to grow by about 20% in the 3-5 years. 

2. I probably won't buy a small multi family property there due to the property management hurdles. I can see why someone would own there it if they lived near by, however, it didn't make sense for me.

Thanks! Cody

@Rhett Tullis @Nathan Allen

Really appreciate the insight, @Nathan Allen. @Rhett Tullis

Update on my search for property management. I've talked with many folks, and narrowed down to 1 person/agent broker that seems to have a bit of experience managing properties in the Altus, and they feel like they could manage mine. They're mostly a 1 or 2 man show, and aren't the "systematized" company I was initially targeting, but will provide a full offsite management service (screening, evictions, monthly statements, etc). I think I may explore that route.  

Thanks for the response, Rhett. I have thought about that option, however, it doesn't work in the numbers unfortunately. Specifically because the unit count/cashflow doesn't justify having someone on payroll. 

Hello BP folks, 

I'm an out-of-state (Buy and Hold) investor that is currently under contract to purchase an 18 Unit apartment complex in Altus, Oklahoma. 16 out of the 18 are currently leased up. Unit mix of (10) 2/1 and (8)1/1. We are scheduled to close on 12/20/2016. In search for a property manager/property management company that is set up to handle something like this. Initially, I didn't believe it would be too difficult to find someone in the area, however, I've have called everyone I can find in Altus, OK that says they manage properties. Most other complexes in the area are larger (40-100+ units) are using in-house management or using Lynd (large corporate PM), however, they'd rather not take on a "smaller count" apartment complex.

We're currently in DD period and, at this point, our closing may be contingent upon finding a management company that is capable. Surprisingly, I've found VERY few. 

If anyone has any referrals or suggestions, it would be greatly appreciated!  

Thank you, Cody

Keywords: Lawton, Oklahoma, Altus, Multi Family, Apartments, PM, Property Management, Manager