All Forum Posts by: Eddie Egelston

Based on the info provided, yes.

Not a good experience. Had clients trying to buy using their financing. They had strict rules against the condition of the property like not lending on mold. (I haven't found another lender with this rule.) They also have a flawed process in which they ask their BPO agents (Realtors) to evaluate rehab budgets. This was 2 years ago, they may have improved. I can't imagine they'd survive otherwise.

Their terms weren't better to make up for their competitive disadvantage.

Never bought anything from one; I'd guess you should do 2 things:

#1 evaluate their current "deals" on their website / mailing list to see if the numbers work.

#2 look up the "deals" that were on their list to see what happened to them. Did others buy and successfully flip? Alternatively ask for a reference from their other buyers.

Inspector license is not the way to go. It's a full time job and it's slow to start. In my state it requires something like 1,000 hours of apprenticeship. All the guys I know doing it have a ton of experience in construction too.

RE license has a lot of synergy with flipping, and you can hit the ground running after getting the license.

You save $300-$500 per property inspecting yourself. You save approx 3% of $200,000 on a flip. No brainer I think.

That's a ton of cash to spend on marketing as a new agent, IMO. I wouldn't be spending more than 1/4 of that. Too many "free" things that work as just as well or better, like open houses and networking for referrals.

That said I commend you for wanting to go this route and there are some options. I feel there is certain things that will actually create business, and there is marketing that simply reinforces your other efforts. For example every agent I have ever spoken to laughs at the idea of a billboard. They say nobody calls off the billboard. BUT if you have one, and then you get in front of a seller, you can say "see that's my billboard, I'm a top producing agent!" Corny but that's how it works according to those with one.

*CRM* if your company does not provide it. (Mine does.) Pretty necessary for an agent today. You'll meet a ton of people that won't be "quite ready"... as in they might actually buy or sell 2 years from now. Use CRM to keep in touch in the mean time.

*Just listed / just sold postcards* I'd recommend these over "hey I'm a Realtor" postcards. I find you are better off marketing from a position of strength. That strength is not "hey I exist" but rather "I'm moving property in your neighborhood."

*Zillow* or other similar platforms are just a kick starter I think. Most agents I talk to regarding Zillow say it's a wash. Yeah you might close some nice deals if you're lucky, but it will cost a lot of cash. However if you're playing the long game, those closed sales get you in front of people and open up the chance to get referrals and send those just listed post cards etc.

There's a ton more but I'll let others chime in.

+1 vote for heartfelt post. All true to varying degrees. It sounds like this is a bit of venting and a "keep your chin up" type of moment. Sounds like you are figuring a lot out on the first flip, which is the goal!

A lot of good points and ideas from people here... I don't think any of it matters.

You buried the lead @Amit G. In your other post you mentioned that this 3 bedroom home was turned into a 2 bedroom home by removing a wall on the main level. In addition, there happens to be a bedroom in a walkout basement. Above-grade sqft and gross living space, that's what matters folks! 

Not enough info posted here to give an accurate answer. Were the main level bedrooms tiny? Then maybe you are better off with 2 big ones. Are there a lot of 5 person families wanting to move into the neighborhood? Or are there empty nesters looking to downsize that will like the house? The bedroom semantics don't change the value and appraisal as much as it changes your likely end buyer.

I see average price per sqft in Mechanicsburg, PA is $99. Very similar to where I live. The buyers for these homes are pragmatic middle-class people. All this talk would matter a lot more at a price per sqft at double or triple this. I think you are making too big of a deal about a wall slapped up in a basement.

You can. You just can't appraise a house in a transaction you are a party to.

I agree 100% with @Jonathan Greene. Since I am in the Chicago market I'll say that you are best served to be at 2.5% buyer agent co-op. No more, no less.

Any more, and you are giving away equity that really does not move the needle. It reminds me of supply-side economics.

Any less and you will make the **** list for a lot of agents. For some agents, if they have the discretion to skip your house they will. As others have mentioned it just makes you look cheap and unreasonable. If the buyer has signed a buyer's agreement, the buyer will have to come up with that extra percentage out of pocket. Some can't; most won't.

Hi @Konstance C.

I saw your post was not getting a quick reply- I want to chime in to assist. First I think you need to clarify are you buying a HUD property or a Fannie Mae "Homepath" property? The 2 are both foreclosures but they are not one and the same.

I am unsure of any "Hickman" law in TX since I am in Chicago, that law does not seem to make a lot of sense. Either way asking for repairs won't "piss" anyone off, they just won't go anywhere. With HUD their attitude is that they will simply sell it to someone else who might be a bigger sucker, or someone who will put in a bid reflecting all of these inspection issues. Fannie Mae might replace a water heater, but you won't get brand new utilities out of them.

The seller isn't exactly voiding a contract if they just refuse to make repairs. They will leave that up to you.