All Forum Posts by: Jake Ernst

@David Kiszka thanks for the insight David. When I was getting agents when I started, I let them know that this may take time to find something that fits so as to avoid this issue. However, it is likely that he assumed a quicker turnaround with me.

@Jaquetta Turner are you offering under asking price within a reasonable amount (given time on the market) or sending low ball offers to make the numbers work? Or a mix of both or something completely different?

@Shelley Sheri when I just started I was less likely to offer on a property but that was due to not knowing my market very well (moved to the area about a year ago for work). I will take the recommendation and send offers without seeing them in person in hopes of saving everybody's time and not burning out an agent as quickly.

@Russell Brazil that is a valid point. I believe I am because some of the houses listed on the MLS are going close to what I'm aiming for but I will check with other local investors to see if I'm just totally off base.

@Mya Toohey that is gold! Are you adding an inspection contingency into your offer? Also, are you offering a little bit more conservatively to build in some room for error?

@Bob Stevens are you doing anything special to network when most events are currently virtual?

@Joe S. I don't disagree at all.

I have been working with a well known local real estate agent since the end of July and today he called to let me know that he can no longer go forward working with me as he has other clients and obligations. This does not come as a complete surprise because last week I contacted him to set up some showings for the end of the week that he texted me last minute he wouldn't be able to do. I understand his reasoning as we have seen roughly 30 properties in 3 months in which I've put an offer in on roughly 5 or so properties with none working out usually due to putting in lower offers on properties to meet my cash on cash criteria. Alos, I understand that we are currently in a rough buyer's market and there have not been many properties on the MLS in my area that meet my CoC requirements and that it may take a bit of time without much to show for it. So I have a couple of questions on what direction I should take from here...

1. Expand in to a location I am hesitant to enter? I am within an hour of Harrisburg and the low cost of properties and thus chance for higher CoC in that area, however I am reluctant to purchase something in the Harrisburg area due to little to no or even possibly negative appreciation and the quality of tenant that some/most of those properties would bring. I am looking for a certain CoC but since I am looking to manage the property myself I want higher quality tenants. This has kept me mostly on the West Shore but it is near impossible to find something within my criteria.

2. Start direct marketing? I have thought of starting to direct market to property owners by obtaining information through ListSource or PropStream or a similar tool. I am hesitant to do this for a couple of reasons: I have not been focusing my learning on direct marketing and thus am less confident in my ability to pull this off successfully and have the fear of blowing money away (which is likely due to my lack of knowledge about direct marketing). I know there is the option of wholesaling properties that don't meet my criteria but I know this is something that will take consistent work to pay off but could be lucrative if done correctly. 

3. Find new agent or just call listing agents? I am still on good terms with the agent who dumped me as he let me know that he will contact me if he gets a listing that he thinks is close to what I am looking for and he is fine with me still using his access to the MLS. I have thought about just calling listing agents for any MLS property that is close to what I am looking for rather than having another agent spend a lot of time with me showing properties. Are listing agents as likely to work with random investors who call about their properties? Also the amount of time it takes for all the showings makes it likely that I may burn out another agent.

I have been attending local real estate groups since the beginning of August but have not been able to network with other investors as well due to these all being virtual because of COVID. If you are another local investor who is looking to sell or has tips, I would enjoy connecting and learning more about what you are doing during these times. If you have made it this far through this post, thank you for your time and your response. Any suggestions or tips would be greatly appreciated. If you have had a similar circumstance I would enjoy hearing what you have done to adjust or change how you are buying properties during these times.  

Jake

@Lionel Butler Wholesaling can definitely be a good way to fund your real estate portfolio but... if you have a certain skill or job that people will pay you to perform, that may be the quicker route to starting your portfolio. Wholesaling is not easy and can take a long time before you see any returns. Good luck!

@Sam Harover I think it's a good idea to see what you could rent the property out for, then from there make a decision. If you can rent it out to where the cash flow is enough that it breaks even with the mortgage and expenses then I would keep it as a rental. Then you could keep it awhile until there is enough equity to sell it for a profit or when you look to buy in Kentucky. I would not keep it as a rental if it is going to cost you money each month. Sometimes the best thing to do is to know when to cut your losses.