All Forum Posts by: Jeffrey Daniels

@Rebecca Salazar many investors would probably be better served by becoming a licensed plumber to aid in their investments, than a licensed salesperson. Pay close attention to all the pre-licensing education and how you plan to apply it, before proceeding with your license. You will learn zero about buying or selling homes through those courses. Yet, once you're licensed you expose yourself to a whole world of liability, that increases exponentially when representing one's self. Review Agency, review the Code of Ethics, look at your local and state regulations; then also tally the total expenses to carry a license... If you don't want to be a real estate agent, is it really worth it all? You can invest and buy/sell/rent without a license, and can compensate a great Agent for faaar less than your going to "save" in fees.

@George Mevawala West Siide! 👐

@Erick Villalba dude, how much money you planning to spend? Unless you're sitting on cash, only place to start is figure out what financing you can qualify for.

@Simon Obas surely they're talking about waiving the inspection contingency to the purchase contract, and not the ability to have an actual inspection. You may have options to negotiate depending on how much you're wanting to risk as an earnest deposit.

@Thor Sveinbjoernsson At least in Phoenix, so much inventory, especially the around $250k stock that independent investors drool over has already been acquired by institutions and converted to rental housing. These homes will likely never be available for sale again - and those portfolios are also waiting to add more doors! Are deals still able to be found, yes! Will there be a huge surplus of vacant homes with no interested or capable buyers again? Unlikely, in my opinion.

A major difference in 2008, at least in our market, was the level of false demand. Too many people financing 100% on interest only ARMs with no plan to occupy or rent the properties.

While unemployment numbers may look indicative, there are many other factors that tell a totally different story.

@Alejandro Salcido it seems we're talking about two different strategies here. If wholesaling then you're probably looking to buy and sell the home same day without ever really putting money into the deal, besides earnest - so I've seen $20k-$30k returns on homes under $200k - but that's like late night tv infomercial stuff, and it depends on finding a desperate, uneducated, or disinterested seller.

If you're looking at ROI on buying the home and making repairs, etc. That's fix n flip my friend, and I think margins are going to depend on the size of you're operations. Someone just starting out with little capital and no contacts may be lucky to net anything compared to a flipper working on several projects at once with a dedicated team. Things are tough here in Phoenix, and to start out here you've got to look where others won't.

@David Rushton, this is one of the most competitive markets in the US. Where bp seems full of investors that started out purchasing a quad for like $29k in some farmtown, starting out here is going to be a challenge that's going to depend entirely on your ability to bankroll. A duplex here is priced equivalent to new construction sfh in many places. I've had a dozen calls this week on a total fire loss slab listed at like $140k - for the dirt! Lots of opportunities here, it's just not a relatively low price of entry.

This must be really frustrating for you, as for anyone else looking to buy or sell real estate. Our profession is one of the least understood, accompanied by the highest of expectations. Assuming both buyer and seller are highly motivated, the outcome of a Real Title being transferred is often accomplished - regardless of the Salespeople involved, if any. You mentioned being licensed in California, and that you yourself don't see what makes the job so hard. You're describing a common outcome, across multiple markets, with different salespeople, and blaming everyone else for "sucking" at a job that you don't even find hard. In my opinion, the most difficult part of this "job" - is making deals happen, that wouldn't otherwise have happened. It sounds like you're dialing and dialing for any piece of juicy low-hanging fruit, in what is the most insanely competitive of industries, against the most savvy and well-connected of competitors - and then blaming our profession (of which you're a part) for not delivering "profit for all"? It sounds like the system you have designed is not delivering the results you expect - maybe you could rethink your system and figure a way to make the deals happen, rather than defame the other 1.4M individuals that call themselves REALTOR®.

Agreed, if you're going to sell one investment property for another the 1031 is a great tool. Only saying, don't let a tool cloud the main decision. You mentioned cash-flow $1500 a month from a single property, with great tenants, low maintenance, already set up and going. Considering goals of cash flow vs. long-term asset appreciation and what you're aiming towards. It seems the common direction is to add a second property while maintaining as much of the current cash flow as possible. Many financials to evaluate, especially difficult when replacement properties are abstract and haven't been identified yet. You may consider using minimal equity from the existing home to finance the same scenario that worked well for you on this one, get in early on a choice lot to a $350k new build sfh community.

1031 has little to do with your situation. If you're going to sell one property for another, yes then 1031. The current COVID-19 situation, shouldn't be a consideration to your long-term plan. If an investment made sense before COVID-19, it will make sense during, and after. Cash flow is key. Unless this property is your only source of financing additional acquisitions, leave it to moooooo.  As Ryan mentioned, a quad at $450k will gross maybe $4k tops - with x4 maintenance expense. If you can net $500 a month from your current property, many investors may leave that well enough alone.