All Forum Posts by: James Dean-Howell

I'm trying to look into getting a Single Family Home with at least 4 bedrooms and 2 bathrooms to house hack. However I don't currently know how to find out how much a property will potentially rent for. What are some reliable ways to find that information? 

 We had a long interview I choose her because she assured me tgat she would be able to find my a property at 80% of value. So I made that Crystal clear. Next time I will ask them about their willingness to offer at 80%. If they can't or refused then I dont need a realtor. I will just start mailing to find the deals myself. I don't need an exclusivity agreement

As for thr particulae property it was on the market for long enough for the owners to lower the price from 150 to 130. Then I asked her to offer 110 with concessions. My goal was to get a counter offer and settle at 115 max. Otherwise the numbers didn't make sense.  

I am going to start mailing more once I get my next paycheck.

 I told her during the interview that my goal was to find something at 80% of value. She said she could do it and that is why I chose her.

It didn't really go as smoothly as I hoped. We met yesterday after she refused to make a lowball offer on a property that she sent me. She basically said that making such offers was a waste of time in our market and she wouldn't endanger her reputation by making such low ball offers. I offered at 80% of list price. I under stood her perspective but also was firm in that I needed her to make these offers because those were the prices where my numbers made sense. Especially given how Lansing is a very hot market and is probably due for a crash soon. Everything is so overpriced I feel.

She said she would tare up my contract and sent me an email stating her reason for cancelibg it and how I refused to listen to her.

My first question is to ask if her word and that email is enough in terms of being legally binding? I don't want to find another agent who I close with and then she comes at me months later asking for a commission.

My second question is to ask if you all believe I was being reasonable. It was hard to put my foot down during the conversation and I took a lot of long pauses to explain my position. She has a lot of experience and I have no reason to believe, even now, that she didnt know what she was doing. However My numbers, cash on cash, cash flow, etc, couldn't work at much above what I asked her to offer. I am certain of that. Yet she was my first ever agent and I did screen 6 agents to get to her. What could I have done diffefently if anything? Am I asking too much? What can I do differently in that future in terms of screening and working with agents.

 I want to be firm and such however I also want to make sure I am still building good relationships long term. I will be buying 10 to 15 houses in the next 15 years so I can't afford to be black listed or something like that. What do you consider a low ball offer? How do you make the numbers work for your investors in this hot market?

@Raul R.

So are you saying she doesn't trust me to close?

If so then what benefit can I get out of the relationship with her if she refuses to offer prices that would make something a good deal?

I signed an exclusivity contract with one agent for 6 months to try her out. She is a retired real estate investor of over 30 years and currently runs a bed and breakfast and a rental. We've seen a few houses and I've thought about making a few offers. She refuses to make offers that she considers "Low ball."

When I decided to go with her I did so when she assured me that she could find me a property that meets my criteria at 80% of Market value. She said she is the best because of her experience and connections. She is active in the market, on city boards and part of many real estate organizations, (where I met her), and knows what she is doing. I have no reason to doubt her. Yet I'm not sure how I will be able to find property at 80% of market values if she refuses to offer on them.

I told her we need to talk after she told me no on my last offer. I asked her to offer 110 with concessions on an income property which just had a price reduction down from 151k to 130k. We will have a meeting "sometime next week."

As much as I want to make money I also want to build a positive reputation within my investment community here in Lansing Michigan. How should I approach her about my concerns about finding a property at 80% market value like she said she would?

What questions should I ask? How can I understand her perspective and make sure that we are both on the same page? How can I frame the conversation positively? Am I expecting too much of an agent? Thanks for your time!

Check out Kalamazoo REIA or KRIEA on facebook.

Also something called "Property Krawl."

 Yes I do. Why do you ask?

Ah ok. You don't know any particular feature of a property that make them likely to have high price/rent ratio?