All Forum Posts by: Dev Horn

Hey Blake, I'd be happy to chat!  Portland is a great market.  Bet it's super hot right now.

Great story and progress!  I was a bit confused on the $535,000 deal tho and just wondering how that worked.  You said your agent brought you an off-market transaction and you found the buyer... I am assuming you are not licensed but maybe I misunderstood...

Did you put the property under contract via your agent and then assign the Purchase Agreement to the buyer (i.e. wholesale it at a higher contract price)?  Assuming that, did the agent (and his broker) get a commission on this?  Or did your agent participate in the wholesale deal with you (for example, you guys split the price increase, aka the "wholesale fee")?

Not sure from the way the story was told, but I assume the agent didn't do it for free.  The scenario sounded like a brokerage activity to me, so I'm wondering why the agent didn't list it (or if their broker was by-passed in the off-market transaction).

For those who are licensed agents, I recommend making sure your broker knows you're investing in real estate ESPECIALLY if you're wholesaling, as many brokers will consider that "brokerage".  I know an agent that left his broker out of a bunch of wholesale deals and had to write the broker a check for over $50,000 when it was discovered.  I don't mean to challenge you or be a jerk in any way - just wondering how that deal worked!

I agree with Jim.  As an investor, you are acting as a buyer.  When purchasing property for investment purposes, you may want to disclose that you are licensed but not acting in that capacity - something like:

DISCLOSURE: The Buyer may be a licensed real estate broker or salesperson (agent). This agreement is not an offer of real estate brokerage services, such as an offer to represent the Seller or list the subject property for sale on the Multiple Listing Service (MLS). The Buyer is not representing or represented by any broker in regard to this transaction.

And he's right on wholesaling, which is problematic for licensed agents because it can be perceived as a brokerage transaction (bringing buyer & seller together and facilitating the transaction in exchange for a fee).

Whatever you decide to do, discuss it with your broker.  Lots of agents also buy rental properties, etc.

Great work on this!  Beautiful rehab!  Love the colors and textures...  well done.

Thanks for the mention, Branton!  Wish you the best in this new venture.

In 2019, we're dealing with very slick competitive offers from VC-backed companies like Opendoor and Offerpad.  I was never a big fan of hand-written pieces and like them even less now.  There might be a small segment of the market that would prefer to sell to a "local guy" that sends out postcards with fake handwriting (which is now used by the local car dealers and lots of others).  I think there is a much larger segment of the market looking for assurance that they are dealing with a professional person / business who has the capability to turn a house into money quickly and easily.

With no branding, your mailing will have only one purpose - to generate a few calls, one time.  With branding, even if your piece is tossed in the recycling, the homeowner can be reminded of who you are and what you do.

Remember, our mailers are not what convinces someone to sell their house.  They have to have that need and the mailer has to either (a) hit right at that time of need OR, more likely, (b) there were a series of mailers received over months or years that caused that homeowner to think of you when the need arises.  Branding is critical for (b).

I still prefer full-color postcards over letters, and still prefer absentee-owners over owner-occupants.  Always use a list with at least 40% equity.

I wish you much success!

Great post!  Thanks for sharing your very impressive results.  Wishing you and your team an even better 2019, Chris!

INVESTORS - LEARN MORE ABOUT WeBuyHouses.com >

(Dallas, TX) December 20, 2018 – Every December, WeBuyHouses.com - the most recognized and trusted brand among cash home buyers - surveys its independent business owners and asks: What will next year be like in your market?

This year, the company received responses from 45 of their local market affiliates, offering a unique insight into the professional “home flipping” business - and the real estate market, in general - at local, regional and national levels.

CEO Jeremy Brandt summed up their outlook for 2019: “After five years of non-stop price increases in most areas, residential real estate is likely to slow down in most local markets next year. In 2018, we’ve definitely seen the cooling effects of rising interest rates (up 70 basis points since our last survey), and we expect that to continue with similar increases in 2019.”

WeBuyHouses.com makes the following housing market predictions for next year:

• Home prices are expected to level out in 2019. They will drop on the West coast, rise in the South, and start to level out everywhere else. On average, we expect home prices to rise about 3% next year (to a predicted year-end median price of $264,000).
• Inventory of existing homes available for sale will rise in most markets in 2019. As a result, we’ll see days-on-market increase, resulting in a slower turnover rate for invested capital. Longer DOM will require more investment in marketing properties for sale.
• The market switches from a Seller’s Market to a Buyer’s Market over 2019.
• Home renovation costs will rise in 2019 in almost every market. Labor and materials will be in high demand next year, even as home prices start to soften. Rising renovation costs combined with softening prices will put margin pressure on real estate investors and push many unprofessional players out of the market.
• Rising interest rates are a big factor in slowing down the housing market. The Fed might have wanted to cool down a market that ran too far too fast. We don’t know, but we expect 5%+ home mortgage rates a year from now (up 75 basis points from here).

Dev Horn, VP Marketing and author of the 2019 Report, added: “The pull-back will be most dramatic in West, particularly California. Luxury home prices hit the wall in 2018 and will continue to drop as demand softens next year, while entry-level housing is likely to rise in value a bit more as demand will remain strong for at least another year.”

ABOUT WeBuyHouses.com

Based in the Dallas/Ft. Worth area, WeBuyHouses.com is a national leader in the residential real estate investment industry. With local offices in over 60 U.S. markets, the brand has been trusted by more than one million homeowners since 1997 and has been featured in national media including Forbes, the Wall Street Journal, Associated Press, Inc., and CNBC. Detailed reports and video content for the 2019 Housing Market Survey are available from the company. Media Contact - Dev Horn, [email protected], (817) 251-8296

INVESTORS - LEARN MORE ABOUT WeBuyHouses.com > http://join.webuyhouses.com

There is only one coach I've ever recommended - @Brian Gibbons.  I put that guy in class above all the "gurus" because I have taken some of his training on how to talk to sellers and it was FANTASTIC.  He shared that with the BP community here > https://www.biggerpockets.com/blogs/3/44570-learn-how-to-negotiate-with-home-sellers

Rather than a (perhaps remote) coach, I'd seek a local pro that you could partner with.  You could offer to work with them for free - an internship - to get knowledge of the business, and what you learn would be relevant to your local market.  Plus you'd be out time instead of money - and knowledge comes from that investment of time more than the dollars spent on a coach.

Most REI coaches teach the same old stuff you already read in those 100 articles, etc. and they throw in some motivation and accountability. I think the accountability part is super important and, again, you could find someone - a partner, spouse, etc. - to hold you accountable to the goals you set (e.g., did you make 20 calls like you said you would today, did you drop in on 5 brokerages this week, etc.).

Just some thoughts.  I wish you the best and much success!