All Forum Posts by: David Prentiss

Patrick Donovan, the obvious opportunity is..if you could find a way to get fsbo's to offer a buyers agent commission and be able to share that in description i suppose, you might solve part of the problem. But a very common / interesting topic nonetheless thats sure to come up more. I've been on both sides and its murky. Good luck! 

@Patrick 

@Patrick J.undefined

Definitely agree, if you are a buyers agent and bring a buyer, you should absolutely get compensated. I dont think you have anyone disagreeing with you. The threads focus was on listing commissions which are the real sticking point.. 

Hey Patrick,

  Ive used a number of firms such as Faira.com, which offer a free listing for sellers and charge a nominal buyers commission only when the buyer doesnt use the faira platform. Otherwise, sellers would pay a nominal fee of 1% if the transaction is handled offline or via paper contracts, etc.. Here are my condensed thoughts on getting into this space: 

1. There is a lot of disparity in agent/firm quality leading me to question the high commissions across the board. Eventually, this space will be "disrupted" like the taxi industry and a number of firms are already making this happen. Redfin (data), Faira (free listings), Rex (half the normal commission), the list continues.. 

2. As a seller, would you show your own property and set up a supra to save 10k on a deal? I think 99.9% of warm blooded people would choose to do that themselves and I enjoyed hosting a few open houses and meeting folks when I did it. 

3. If a realtor or firm claims that the 6% commission is warranted, are they doing a listing presentation, aggressively marketing the home (outside of MLS), and getting traffic to your home and answering your calls immediately? From 10 years of buying and selling, most agents ive dealt with (my opinion) are looking for a quick commission and put in the minimum time required.

Im going to put my license under my buddy who is getting his brokers license in CA. I think the commission matters less than the quality of service provided, but with no quality standards or rating mechanism, its really a crap shoot and a marketing game today. 

PM me if you'd like to discuss in more detail.

Investment Info:

Single-family residence fix & flip investment in Sacramento.

Purchase price: $140,000
Cash invested: $18,000
Sale price: $171,500

Opportunity with a 4 bedroom condo. Infested with Roaches and cigarette smoke residue. Work Completed:
New Kitchen and appliances
New Flooring throughout 1200 square foot home
New Paint
2 new bathrooms

What made you interested in investing in this type of deal?

It was unusual to see such a large condominium. We thought that would be a good selling point once it was updated.

How did you find this deal and how did you negotiate it?

It was on the MLS

How did you finance this deal?

Cash

How did you add value to the deal?

We leveraged our contractor to save on construction costs where we could.

What was the outcome?

Sold!

Lessons learned? Challenges?

Dont spend too much on fluff (fancy fixtures). Ensure your unit matches the neighborhood.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Faira handled the real estate transaction. They dont charge a lot and provide excellent service

I had a rental when I first started out (section 8) in CA. I went by for regular repair items and bicycles kept coming up and leaving. After the 2nd time observing the behavior I realized I might be dealing with a drug house. Long story short that was confirmed. If you have any red flags, find other tenants... Unfortunately, experience is a good way to learn how to better vet tenants. 

I just added the property to the marketplace! Thanks. 

Hi Carson,

I also started investing in stocks and options ( scary) during college but ended up moving over to real estate. The key is getting in and experiencing it first hand. Id echo several other posts in doing the following if you can. 1) find a home you can buy with an FHA loan

2) Join a local real estate group and network

3) get a salespersons license or find a way to earn some cash while you are in school. I had a 2 bedroom condo i bought during grad school and rented out a room which covered my mortgage. 

I got a degree in finance and an MBA but have made multiples of my work income investing in real estate. Go for it!! 

Hi Community, Im looking to wholesale a property I own in northern nevada. I normally fix/flip myself but am interested in using this technique to trim my portfolio and work load this winter. Have others had success doing this? Are there standardized processes you use? Any good websites to list homes?