All Forum Posts by: Joe Delia

@Joe Delia - You can trust that I am all about the relationship and, in any market, relationships are what it is all about. What works for me in metro Atlanta might not apply in all markets...this is a huge market with millions of people and 1,000s of weekly transactions. I have a ton of realtor friends and have been in those shoes myself. My philosophy is that I want the best player I can for each position on the team. My selling agent (repping me as buyer) may not be the best person for the listing slot. I refer a lot of listings to agents through our repairs in our contracting company....homeowners tend to call us first when they are getting ready to list. I had a client last year who listed with someone...the house sat for 3 or 4 months with not much activity. She relisted with a team that I referred and the house was gone at the same price in a week. Who knows why it sold so fast...maybe it was all of the previous marketing... but I can tell you that this particular team has some sort of magic and a great network that follows them. They do a ton of personal marketing work and network on a personal level....it's a husband & wife team and I like those because it's like getting two for the price of one in effort and production. I have another agent that I personally can't stand but I use her to list and refer her to others because, in her market, she gets it done and I'll keep referring her as long as she gets those results.

I wouldn't "cut" anyone's commission. As an investor, you have to put people on the team who get you & the mission. On my deals, the selling agent on my buys is really getting a "free" commission anyway as I find my own deals, research them and know more about them & the markets I run in than most agents would. I actually ran with a newer agent yesterday who wanted to run properties with me and learn what I do. Agents don't have to run me around typically and I mostly close what I put under contract. All they have to do is change the address on the GAR form and submit the offer electronically...takes them about 5 minutes. I like dropping the commission on the listing side and paying a higher commission on the sale side. I don't do a ton of retail flips anymore but when I did this worked like a charm. It actually gave my listing agent the incentive to go find me a buyer and get the reward for it. Finding the most knowledgeable & productive listing agent is always the way to go. Too many times, the selling agent for an investor assumes that they are entitled to the listing...and they aren't. Even if I list with someone else, my selling agent has the chance to find a buyer and get a premium commission.

A newbie investor isn't likely to be able to do it my way. I've been doing this for better than 25 years and have a track record with quite a few agents. A newbie might submit 30 offers and ink zero. Those on my team understand my approach and it pays them to be productive. There is nothing more valuable than a market informed, hustling real estate agent. Sad part is, many aren't like you...you're hear sharing and adding to your knowledge. The days of sticking a sign in the yard will be gone in many markets for quite some time to come. In the right parts of atlanta, it is that way right now with tight inventory and houses selling for more than listing price. I am a HUGE and you can bet that I will protect and nurture the business relationships I develop with agents and others. One of the biggest mistakes newbie and even seasoned investors make is to try to squeeze a little from everyone in the transaction. I won't do that but I want value for my money....and I'm sure do to! Happy Investing.

Great job on the remodel Jacob - I wish I had caught this posting earlier. You do really nice work and obviously take a ton of pride in your renovations and the home you are presenting for sale. You need to point that out in your marketing efforts. I've flipped more houses than most over the years but what works for me might not work for you:

The agent who can help you find & negotiate the deal on a purchase isn't necessarily the best person for the job on the sale. Agents often think they are somehow entitled to the commission on the other end of the deal if they helped you buy it. Figure out in advance who the "hot" listing agent is in the market you are buying the next house in and interview them for the listing....even in advance. Chat with them about your plans and get some input as to what you should be doing to make it sell for max price. You don't have to listen to them but it's good to hear what they have to say in advance. I have some agents in east cobb who sell everything they touch at great prices...not always market max...they actually sold one recently before it even was listed. Find those kinds of agents and don't be afraid to split the deal

I wouldn't have lowered the price at all...at least not when you did. I would have cut my listing agents commission back some and ramped up the selling agent's commission to 5%. Agents are commission driven and the more you pay, the more attention you'll get...and they'll be lining up to see you next project.

Shoot a great marketing video of the property and get it online ASAP. I am involved in several companies and video marketing is key to what we do and our success. Check with the local colleges and see if they have a video/media program and see if they will work with you on internship or cheap basis...be they will. Youtube is great...but it has to be a good video. If you feel comfortable, get in front of the camera and explain the salient points of what you've done with the house. No one knows that house better than you and your contractor...I'm sure you are doing some of the work so advertise that. Once you have the video you can post the link EVERYWHERE....put a note in it that you buy houses. CL isn't the place to sell your house...though it might a great place to buy. Post it there but just accept the low baller tirekickers that come from it. With my renters, less than 5% come from CL...the rest are from other sources.

If you're going to keep doing this, get with a great local printer and have a nice postcard size marketing piece done...front & back. Set up the standard one side to be all about you, your philosophy and the "why should I buy from this guy?" Remember back when you bought your first home....the anxiety....the unknowns...speak to that...you have an honest face...use it in your marketing. Get known in your market as the "yes..you'll pay a little bit more but I'm worth it" investor. Also put a note on there somewhere that you BUY houses... I like making things do double duty so get the most out of your $ and efforts.

Once you have the card set up - use it for each property. Take it door-to-door in a 1/4 mile radius around the property and try to meet some of the folks in your neighborhood. Don't knock on doors....and don't leave it in the mailbox as that's actually against the law....leave it in their front door. You'll have your neighbors marketing for you and you just never know...a visitor might see your card, catch the sexy shower and want to buy it. The card got the ball rolling...not your agent. There is always a hidden market for buyers...just like the one we try to find for sellers.

Raleigh is a big IT town with more men than women. Market the house as a 4bedroom from the get-go...if it has a window & a closet and meets basic space requirement...it's a bedroom. It's also the perfect man cave for someone with a family...it's also, more importantly....the perfect home office for someone who works from home. Marketing is all about finding your niche or creating it;

Lastly, if you are going to keep doing this....reach out to the HR departments of leading and mid-size firms in your area....same with recruiters. The larger firms will have contracts with real estate relocation firms...ask who you need to speak with and let them know about your house and future projects. I know quite a few HR people and recruiters and networking with them brings me business.

Congrats on the house.....hope some of this helps for the next one! happy Investing!

Sorry @Joe Delia for being unclear. You said that separating water was a fortune but @Kyle Hipp said it cost him around $600-700. I was just curious what you paid. I wouldn't consider $600-$700 or even a $1000 a fortune because considering a water bill could run into the $100s of dollars per month this thing could pay for itself in no time.

@Kyle Hipp Really only 600-700?! I have the same situation where I have two different water heaters. Was this something that the city did for you or was it one of those sub meter systems? So it sounds like you are billing people separately than rent? Any problems collecting or is that the city collecting? Sorry if my questions sound silly or repetitive I'm just trying to figure it out.

@Joe Delia Sorry Joe I'm getting conflicting answers on this what did you pay for this?

Some great responses guys I really appreciate the feedback.

@James Wise Yea weather is just a lil better down here in Dallas just a lil (sarcasm button). The constant snow up there was driving me crazy.

@Chris Clothier Yea water is expensive its Texas so water is pretty scarce.

@Account Closed I was planning on telling the tenant so Its not like I'm trying to be a sneaky guy but I still wonder even if they knew if it would be allowed.

@Kyle Hipp Hey Kyle how much did this cost for you?

Overall it seems like you guys fall into two camps. Either:

1. Pay for the water and have them pay a separate water fee every month additional to rent that way they have a better idea of what water costs every month.

OR

2. Include the water in the rent and use "water included" as some type of marketing tactic to attract more tenants.

I can see the pros and cons of both sides. On one side "water included" will attract more tenants but it will encourage the abuse of that privilege that @Joe Delia is talking bout

On the other side adding a separate water fee may be difficult to collect but will make the tenant more cognizant of water costs.

I think ultimitly I will have the water seperated but this would be a fix in the mean time while I am living there.

Hello, from Rochester Hills, MI.

I finally got around to joining after reading this forum for some time.

I learned a lot since reading bp and thought I better join the discussion.

I currently have two single family rental's in Lapeer county.

@Matt R. Hi Matt, in an effort to stay on top of market trends I read A LOT, lol. If I recall correctly, I read this info in an newspaper article I believe, but don't quote me on it. I'll see if I can dig out online for you.