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All Forum Posts by: Geoffrey Hoffman

Geoffrey Hoffman has started 0 posts and replied 44 times.

Post: Am I been realistic

Geoffrey HoffmanPosted
  • Real Estate Agent from Cleveland, OH
  • Cleveland, OH
  • Posts 45
  • Votes 26

How are you buying?  Cash or financing?  Assuming you pay 250k cash - If it rented for $2500/month (30,000/year).  12% annual return if you had no other expenses.  I would think you could spend a lot less to gross $2500/ month.

Post: Tenant fails to notify landlord about guest

Geoffrey HoffmanPosted
  • Real Estate Agent from Cleveland, OH
  • Cleveland, OH
  • Posts 45
  • Votes 26

If this is the biggest problem you encounter as a landlord, consider yourself lucky.  If the tenant is otherwise good- paying rent, not causing problems, etc; I say let it slide.

Post: Young new investor looking for helpful advice

Geoffrey HoffmanPosted
  • Real Estate Agent from Cleveland, OH
  • Cleveland, OH
  • Posts 45
  • Votes 26

Buy low, sell high.

Seriously, you make the money when you buy. If you overpay for the property, or underestimate the repairs (too much), there is little you can do to recover. Know the market and what ARV will be when the flip is done.

Post: Handling listings in addition to a 40 hour/week job

Geoffrey HoffmanPosted
  • Real Estate Agent from Cleveland, OH
  • Cleveland, OH
  • Posts 45
  • Votes 26

It all depends what your full time job is- Can you answer calls?  Respond to emails?  Leave at lunch to show a house?  Meet an inspector in the middle of the afternoon?  Handle last minute problems the day of closing?  Respond to negotiations from another agent in a timely fashion?

In my experience, part time agents work mostly for buyers.  They may occasionally list a house for a friend or family member.

Imagine you are a seller- You interview 3 agents to list your home.  1 is a full time agent who dedicates 100% of their work week (and weekends) to selling real estate.  1 is a full time agent with another part time job. And 1 is a part time agent with another full time job.  Who do you hire?

Post: Am I been realistic

Geoffrey HoffmanPosted
  • Real Estate Agent from Cleveland, OH
  • Cleveland, OH
  • Posts 45
  • Votes 26

Trust what your Realtor says as far as market value.  Is 250k too low?  It depends on your market.  In my market, buyers make low offers all the time.  The seller can say no.  Knowing that it's a flip, there is no emotion on the seller's side.  It's all about the numbers and maybe they'll take 250k to avoid additional carrying costs.  But don't assume they're desperate just because it's vacant.  What would the home rent for?

Post: Too Many Rental Application --- Raise Rent ask

Geoffrey HoffmanPosted
  • Real Estate Agent from Cleveland, OH
  • Cleveland, OH
  • Posts 45
  • Votes 26

I was recently in the exact same situation, and I had the same thoughts- Should I charge more?  Then I took a breath, told myself "Don't be a jerk", and accepted the most qualified applicant.  The reason I had so many applicants is because it was priced right.

Post: Section 8 Legal Source of Income

Geoffrey HoffmanPosted
  • Real Estate Agent from Cleveland, OH
  • Cleveland, OH
  • Posts 45
  • Votes 26

I have never owned a rent subsidized property.  To my knowledge, accepting Section 8 is still voluntary, at least in Ohio. I would be very surprised if the government could force an owner to accept vouchers (and have all of the inspections, pay additional fees, and make repairs, etc).  Just put "no vouchers"  in the ad.

Post: HUD Home closing costs

Geoffrey HoffmanPosted
  • Real Estate Agent from Cleveland, OH
  • Cleveland, OH
  • Posts 45
  • Votes 26

That sounds high to me.  Title and escrow services usually run 3-4% of purchase price (in my market).  How are you financing?

Post: Meeting with a Realtor for the FIRST TIME as a new investor!

Geoffrey HoffmanPosted
  • Real Estate Agent from Cleveland, OH
  • Cleveland, OH
  • Posts 45
  • Votes 26

As much as it is important that you interview the Realtor to make sure that they are the right agent for you; The Realtor will ask you a lot of questions to make sure your business is worth their time.  To state the obvious, a Realtor only gets paid when a sale closes, so if they don't think your seriously able to buy, they may choose not to work with you (don't take it personally).  This is the agent's livelihood, and he/she needs to make a living. The first time I meet with any new client, I ask them for a pre-approval letter or proof of funds.  A serious investor will provide this.  Representing investors is not something that every agent wants to do, and many investment strategies do not involve a Realtor.  Investing is a different segment of the real estate industry. 

If a new client told me they wanted to buy a property "no money down", I would immediately ask for a pre-approval showing that they could get 100% financing.

I will add that you might not be able to get a Realtor to work for you full time, but it is valuable to build a relationship with an agent you trust. For any property listed in the MLS, you will want an agent on your team.

just my 2 cents

Post: Who's money is best !!!

Geoffrey HoffmanPosted
  • Real Estate Agent from Cleveland, OH
  • Cleveland, OH
  • Posts 45
  • Votes 26

I have the same mindset as you.  Cash is there is invest!  If not in real estate, then invested elsewhere.  Interest on a loan takes a huge chunk out of my cash flow and profit. If you buy with cash, you can always refinance to get your cash out for other needs or investments.  Just my 2 cents as a cautious investor.