All Forum Posts by: James Brand

Hey Alex,

The area is definitely a significant factor. Both for appreciation and demand. Additionally, you mentioned the property is not in great condition so investing some additional capital into the property could help you realize higher rents, decreased turnover, and better tenants. Since you are doing an FHA loan already, an FHA 203k loan might be worth considering to add value. In an appreciating area you may even be able to pull some money out of the property down the road to finance other investments. I live/work in the city, always down to chat REI.

Good luck!

-James

Welcome Steven!

You seem to have laid out a solid set of goals to get you started in the industry. When it comes to choosing a brokerage to work for, I would highly recommend looking into the training each one offer to their new agents. The more in-depth and hands on the better. You will find that the pre-license course is not nearly enough to prepare you for success as an agent. Working for a company that properly prepares you to be a professional is the best way to set yourself up for a successful rewarding career.

Best of luck!

James

Hey Jiawei,

With your budget, and what Inknow about the NYC market, I would recommend looking into town close to the city that offer access to the city through mass transit. Preferably through a train as they are not at risk of traffic. MFH is a great way to buy with owner-occupied financing which has the advantages of a lower down-payment. Honestly, the best first step might just be finding an investor-friendly agent to help you  u derstandable the whole process and the costs.

Best of luck!

-James

Hey Gabriell!

I live, work, and invest in Philadelphia. I am curious what has lead you to target Overbrook? The area does have rental demand from students at St. Joseph's University,which can be an effective strategy when acquiring renters. One key though is making sure your property can handle the abuse of younger renters. If college students are a demographic you would consider renting to, I would recommend making decisions to prepare your property for an increased level of wear and tear. I included a link below that has some good ideas about steps to take when renting properties, especially when considering college student.

Best of luck! Reach out anytime if you have questions about the city.

-James

 Armando raises an applicable point regarding buyer agency agreements. Some agents feel that it puts off clients to get them to sign a contract. That being said, an agent is at risk if their client is not contractually bound. I personally would not have someone sign a buyer agency agreement until after we have gone out and looked at a few properties. It is good to get to know one another, and how you will work together before agreeing to work together. This way both parties know what they can come to expect from one another.

-James

 By your description it sounds like you would be responsible for paying the agent 3%. It could be the agent did not realize he was requiring you to do so, but I would not agree to that. The standard is to have the seller cover the broker fees, and unless working on a specific property that is unique, that is how you should operate with your agent.

-James

Hey Bryan,

The key is to properly vet your GC. Get references and speak with them. Then, speak with a lawyer about a contract. It will be a little more expensive but you will be confident you know how your experience should go.

-James

Hey Tom,

I have to back @Leigh Ann Smith regarding the use of a VA loan as needing owner occupancy. Additionally, I believe AirBnB has a maximum of 180 days that you can rent a property. Just something to consider when developing your strategy.

Good luck!

-James 

Hey there Chaim,

The standard practice is that the seller covers the commissions paid to the brokers at closing. Occasionally when dealing with FSBOs, an agent may work something out with a buyer. It is one of the reasons why I recommend buyers work with an agent when looking at properties, as they are paid for by the seller. 

-James

Hey Adam!

Sounds like you have been on here a while, great to see you are going to start posting and sharing experience. Love seeing new people getting involved in the South Jersey/Philly area. 

-James