All Forum Posts by: Corey Kenney

@Giovanna Jeanina Joubert

You can find established investments companies to hire you for an (Inside Sales Agent) type position where you’ll get paid to analyze and purchase property for them. Possibly low salary but commission bonuses per deal closed. Good luck

@Nick C.

I agree but it’s not the standard buy the book approach they are teaching when you get your license. That was their hook to the “amazing one of a kind” strategies. Hopefully this thread will help someone to second guess handing anyone their money who promises to have the secret sauce.

Me personally, if I’m doing that work to find an off market seller I would be looking to purchase the property myself and at least wholetail it, if not flipping it or holding it.

@Salvatore Lentini

Salvatore!

Thank you so much!

It’s a breathe of fresh air to speak to someone that will understand my situation in this area and I really value your opinion. I know this isn’t San Diego but I’m offering on properties that have literally 30-40 offers and I’m struggling to make the number work.

I've heard in a couple BP podcasts that managing your own subs should only be a difference of 8-10k on a complete renovation project but I find I keep getting extremely high estimates that make it so my deals don't work, at least when I look at total investment against the net return its not pretty. I'm using hard money lenders and they like to stay under that 70%LTV as doI ..but it's the renovation costs I'm getting back from the GC's that are skewing my numbers.

I started looking for deals where I could potentially make 30k on a flip not accounting for CG taxes but I can’t see making that type of profit unless I’m doing some of the work myself which I don’t want to do. Do I need to look at managing my own subs?

If I simplify it and say that every full gut rehab I get estimates on ex: standard 3 -1.5 -13-1500sqft has been at lowest 120k up to 170k which is very high and this is with a level 2 granite and an average 8mm vinyl plank,R-2 replacement windows (standard materials in my eyes) and I know what the estimated material/s costs are, some of the contractors are even providing them which I appreciate but then it’s their labor charge that’s usually more than double the materials costs and I have no way to measure that and make a case to them unless I compare estimates which I’m told is unprofessional. The last property I felt the need to send the contractor my entire spreadsheet to show that I would have been doing the deal for 16k hoping to show transparency to better my relationship. I’m trying to just get deals done for the experience but a market shift could swallow that small of a margin up in a second and I can’t afford to go backwards on the little funds I do have to invest.

I know quality costs and I’m sure I’m pulling from the top of the list but I want to bring a quality product to market, no exceptions. Your from this area of the country and I know everything “Depends” but experience should give you the knowledge to spitball a number when you see a 3-2 that needs a gut what’s that first number that comes to mind for you? Based on other deals I’ve followed from listing to resale someone is getting these deal done for a lot less I just can’t tell if they are partnering with contractors themselves or they have relationships with the contractors I’m looking for.

@Charlie MacPherson

Thanks Charlie! That’s what I suspected the response would be from the group.

Does anyone have any experience with this or his training. It all seems very gimmicky to me but some of concepts I could see being effective on the sales side if there are no laws being broken or violations to the standards of BOR. It’s basically “wholesaling” for agents (We all know how much the REC loves wholesaling). One tactic he is speaking about having a off market buyer pools like you would with investment properties and using that to entice off market sellers to sell quickly and negotiating above average commission rates meanwhile working both sides of the transaction. I’m a skeptic by nature so I was hoping to get some facts on the matter. This is just one example of his materials but he’s claiming to have been the number#1 agent in the country and now he does this to give back and he doesn’t need the money but is selling the document templates and the training as a package...?

@Corey Kenney

Okay everyone, I’m turning to you once again for this same property. Yes I should have had an inspection but I didn’t and during my further inspection I found a wall in the attic that has charred 2x4’s and plywood that is almost completely covered up except around the window and this would explain the fact that the entire roof was replace at some point in the last 10 years. I asked the listing agent if there was anything disclosed to him regarding a fire and he said he was not aware of a fire at that property and he’s a veteran in that area so I thought he might remember seeing something. The listing agent said he would ask the Fire Marshall and get back to me with his findings and that was 48 hours ago. Is this definitely 100% an undisclosed material defect? How can I get this work inspected and approved so that future buyers dont/can’t walk away when I have to disclose it. I want to just cover it and keep it moving on this deal but I’m worried this was never reported and they attempted to cover it up. What if the current seller says it was like that when he bought it? Please advise

Thanks

@Russell Brazil

Russell,

I typed out a very long reply but as I was scrolling I was closed out and now I don't have time to retype it but I wanted to say my reaction was not necessary and that I'm not used to be in the subpar performance group with anything I do but being new I expect small mistakes from myself but I relied on someone else's word(Listing) regardless of it being the seller or the agents fault. The rest of my response was back story to add context just to share what I've been dealing with like the last 6 months of countless hours and frustration of asking HML for POF's and writing up offers just to have them not be accepted I'm sure you guys/ gals know all about it. I know it's hot in many markets but it's just been a challenge. My point to that was the fact that, In the beginning I was walking every property and taking pictures and all my offers had contingencies but as months went by getting beat every time against 25-30 offers for each property. I realized it was less about price and more about speed especially when you have to use a Hard Money Lender. These are things I gathered from listing agents when I would circle back with them after a loss.

Given the need to be efficient and the fact that I thought this deal was good enough to absorb any small defects as long as it was standing up right and it is.. this led me to miss the AC. Hopefully I’ll get to go to closing but for now it’s all still a pipe dream, I need to get past the land use board first.

Just to clarify the way I handle my own transaction is not the same way I would handle a clients transaction and I would/do take the my fiduciary responsibility very serious. I would not advise a client to waive any contingencies or waive their home inspection, close quickly or to use a high interest rate lender. I also know in that case, I have others to lean on if needed

-My recap was still very long-

Thanks

@Marcus Auerbach

Thanks Marcus, I completely understand and I agree with everything you said.

@Mike Cumbie

Yes, I am a member of the NAR as it's a requirement of my brokerage, so yes I referred to myself as "Realtor". So what you are saying is, I'm not representing myself to the highest standard upheld by the NAR . Thanks 😀

@Russell Brazil

Hopefully one day I can aspire to be like you and the other 5 voters, perfect. Thanks for giving back and providing value in the forums.

** When someone is doing their first Real Estate transaction ever, let alone their first investment ever you don’t need to try to make them feel small so you can appear big amongst others. I’m clawing my way through my first deal with my whole life savings on the line and yeah I will drop the ball, and I will take ownership for everything I do or anything my little team does but you better believe I won’t make the same mistake twice just like everyone else. Don’t forget why the forums exist, I asked a question if you don’t have the answer I’m looking for, move it along**