All Forum Posts by: Etienne Martel

@Cara Lonsdale,

Didn't mean to sound rude or anything! 

I'm not saying it's a bad deal, everyone is in their own situation and have their own format on how they invest. This 1% rule is for people using a similar format with expenses of insurance, property management, rent, vacancy, etc.  

I have worked on deals where the expenses are not 50% and I know a few investors that like to do most of the management/repairs themselves, lowering the expenses significantly. My team invests in deals where we have higher than 1% rent/ARV ratio giving us an excellent profit. That is all i'm saying. You definitely will not be able to find this in every single market, but it is still a possible thing in the US market right now.

@Cara Lonsdale,

That is because that is a great return for you. These single family homes have the most potential to have positive cashflow after all expenses. 

Have you set aside money for property management, vacancy, utilities, insurance, and maintenance? That is something a lot of people set aside, lowering your cashflow. You might be  managing it yourself, which would save you some costs but take your time.

@Jake K.,

Do what you can to make both sides feel equal and talk with your partner about what he feels is equal as well. If one side feels taken-advantage-of, this will cause issues later down the road. You want to create long lasting relationships and partnerships for the future...you two may end up making millions together in the future!

@Account Closed,

Yes, some home-owners may have had bad experiences with agents, but if you stay extremely nice and respond quick you can change their perception of agents. Then you will also have a new client!

Some people will straight up not like you, but that will come with any kind of business! So brush it off and keep your eyes on the prize. 

Currently, I am focused on out-of-state investments and doing direct mail campaigns in my primary areas. I have tried direct mail in CA, but I didn't not have a big response rate. I did admittedly, only send one round of mail. (should have sent one every month)

Let's connect and talk further!

@Jake K.,

If one person found the deal, the usually get a bigger piece of the pie or will cover less financing than the person who did not find the deal. They can invest a larger piece of the up-front costs, then you can split the profits 50/50 in the end. (If it is a flip)

You two are your own businesses, so as long as everybody feels that the split is fair and equal, then there is no problem!

I hope this helped.

Happy Holidays!

Kaylor,

You still work for them, but there are minimal regular expenses. They most likely won't have an office, not many tools to offer... I'm guessing they would take a high percent of your commission if you did make a transaction. You will have to explore what the different brokerages offer!

Hey Erica,

Congrats, I'm happy to hear the letters worked! 

Do you have an idea of the market, so that you know around how much you need to purchase the prop for to keep you afloat?

You want to make sure the price isn't too high or else it's just a bad deal. You will also be able to sign your contract through email or through your computer. There are many websites that offer this. 

Best of Luck and Happy Holidays!

Hey Jake,

If you have a couple properties that you can acquire, I would work with an investor so you can share the risk/reward of the deals. You will also keep capital for the other opportunities if they come up quickly!

Sounds like you'v got your ball rolling so keep the momentum! 

Best of luck & Happy Holidays!

Hey Jerry,

Welcome to Bigger Pockets! Glad to hear you're enjoying the community and taking your steps towards investing!

I wish you the best of luck and if you have any questions, feel free to reach out to me!

Thank you & Happy Holidays!

Hey Kaylor,

I'm an agent & investor so I'm in that exact situation, however I also work as an agent. The benefits of having your license is that people usually trust you more (fiduciary duty), you have access to the MLS, and if used correctly you can get your foot in the door for off-market deals/pocket listings.

There are brokerages that have minimal costs for simply holding your license.

Happy Holidays!