All Forum Posts by: Harrison Smith

That does seem a little invasive. It would be a turn off for me to get solicited that way, unless I knew who you were first. Maybe use the Facebook message as a follow up strategy (maybe third contact, once you have established contact with them via mail and/or phone). Make first contacts with a mailer and/or phone call, and then use Facebook as a follow up. Soliciting directly on Facebook is still very much a gray area. I agree with @Owen Dashner that Facebook was not intended for direct communication with strangers to solicit business, but does present a way to communicate. Getting in front of the potential lead is key, but I would be careful about doing it in a way that could lead to some bad word of mouth that could harm your reputation early on. It might be effective, but I would just be careful. 

@Jill Herges This is great and scary proposition. I would think it would be best to vet tenants together. The tenant signs a lease through 11/30 with the current owners, with an option to extend if the deal does not complete on that date. The tenant then signs a back up lease with you beginning 12/1 with an option to cancel or defer if the deal does not complete on that date. This would keep it clean in the sense the lease would be with whoever the owner is at the time and it allows the tenant to stay either way, with protection should something happen to the deal. Not sure if this would fly legally in your state, but I have seen it done other places and it worked well. 

The only other thing to consider would be transferring the security deposit as part of closing, but that would be pretty easy to accomplish.

@Brian Garlington Unfortunately, too many agents operate like this and are too busy working on things that don't matter to get the things that do matter done.

One of the keys for me as an agent, is agreeing on the expectation. When I am asked by a client to do anything (write an offer, meet, go on a showing) I always provide them a timeframe that I can get that done and we agree on whether or not that works. I can adjust right then and there if needed. I really appreciate when a client tells me their timeframe/expectation upfront, that way I know what they need and can be sure to meet their expectations. As the client, you absolutely have the right and should set the expectation and timeframe. You are the one in control of the relationship.

One word of advice, I would be careful going directly to the listing agent with an offer now. Where "Slowski" showed you the property, that may be enough to constitute agency and they would still be due the commission. It might be good to consult another agent (preferably one that gets referred to you) on whether or not you can still do this. 

A relationship with an agent is all about fit, whether that be communication style, personality, ability, etc. Make sure you are clear with the agent and if they can't meet the expectation, then prepare to move on. Good luck on your search, I hope you find an agent that works for you.

@Stefano Gasperini You ask a great question. As a Realtor that works with investors and is an investor, I can tell you that Realtors generally like adding an investor to their client list (I love working with investors). The reason being that you are someone motivated to buy properties that is usually educated on markets and deal analysis. For me, that makes life easy because I don't have to negotiate commission with you (since its paid by the seller), you won't need the hand holding of a first time buyer, and you are someone who will buy and may likely buy multiple times. I can easily set you up on drip campaigns and have MLS updates sent to you, my CRM and local MLS does that work for me (takes me 5 minutes to set up). Other than answering questions and taking you on showings, there is little work for me (most investors don't even want to go on showings, even better for me!).

The value I hope to receive in return is (1) consistent transaction flow since you will do multiple deals and (2) referrals to the other investors you know. Referrals are the greatest value you can provide an agent, so reward a good agent for their work and loyalty by giving them some introductions to your network, especially your investor friends.

Best of luck on your search to find an agent you can create a long term partnership with.

@Omari Heflin I have seen investors in my area have luck with Facebook pages. They utilize them to advertise to targeted markets, create an online network, and then funnel the leads to a landing page that gathers their contact info. Mailers do work but you have to send out a lot of them to get a few leads. Craigslist is a hit or miss option depending on your area. Networking with brokers and wholesalers help, since they are also out generating leads, but sometimes contractors know some people because they might be called in to give remodel quotes if people are debating about staying in their home. If a contractor recently gave a remodel quote, then it might be an indication that the homeowner doesn't like the home or it needs updates, so these could be good leads for people looking for an out on homes that have value add opportunities. I have seen all of these work, it really depends on how well you utilize them and how consistent you are.

Ultimately, its all about how many contacts you make. Network, network, network and then network some more. Consistency is key, stick with it and you will eventually create the deal flow you are looking for. 

@Thomas Weidner The previous feedback you have gotten is great and I agree with all of it. It is all about your comfort level that this agent will be able to work with you and get you the outcome you desire. You need to understand communication style, personality, and ability to market/sell your property. As an example, there are many fantastic agents that can get your home sold, but are poor communicators and will drive you crazy until closing because they won't give you the feedback you want. Make sure you are a fit with the Realtor, otherwise the process may get you the outcome you want but you won't like the ride and that can be stressful and unsatisfying.

If you can get comfortable that you are good fit, then you should be in a good place to get your home sold and not feel stressed during the process. Good luck! 

Fixed fees are rarely good for you, since the GC or guru would only do that to guarantee their income on a job they don't think will produce much they can bill you for. A percentage is always good, so long as its well managed, to ensure its an equitable arrangement for all. Good luck with the guru!

@Scott Carrillo What is the purchase price and rehab cost range you would likely be in? For example, paying $5K to purchase a $50K property is a lot different than paying $5K to purchase a $100K property, same is true with rehab. You need to look at the fees as a percentage of the total cost (purchase and rehab) to understand what you are paying relative to the overall project. From there, you need to run estimated numbers the best you can using some averages to see if projects would still be viable with those fees. If the returns are still within your range, then it might make sense to use this person and pay the fees. If the returns aren't there, then you have your answer. 

@Hank Keller Which TK company are you using? How has your experience been with them? TK intrigues me, but also concerns me with things being so far away from me and someone else being nearly completely in control of my investment. 

Maine Properties is one of the best in the Greater Portland area. Larger buildings with more units are not a problem, they can lease up, maintain, and remodel so you can pick and choose what you need.