All Forum Posts by: Jay Hinrichs

lastly most brokers in the LUX market would not even come close to entertaining what your offering.. they would be thanks but no thanks. Not worth their time.

what are marketing costs? I pay for staging... when costs do the realtors have?

If your market is that hot.. \and you pay for staging . then just find a broker that will let you list on MLS with no representation.. We have these brokers on the west coast they charge like 500.00 to 1000.00 .. and in the public remarks and private remarks it says to call you the owner for showings etc.. flat fee brokers.. U may or may not have them there.. Every market is different when it comes to brokerage services and as I stated no one is forcing you.. commish is negotiable its up to you to find the sweet spot between service and fee paid..

I don't want to sell without representation. I'm happy to pay a reasonable fee. Am I the only one thinking 60k is unreasonable????

to the RE brokerage community YES they will feel they deserve it.. And YES many will feel brokers are over paid..

I have been a RE Broker since 1975 I have taken listings anywhere from 25% commissions down to 1% and I brokered 20 duplexs a few years ago where the builder was in Trouble these sold for 230k each and I charged flat fee of 30k each.. But I did a big event in SF Bay AREA and sold them all in one weekend.. that event cost me 50k up front to put on.. And it was risk money what if I never sold a one.. as it was I made 600k in one weekend.. well had to follow up with all the escrows and inspections but you know what I mean.. And the builder was happy to pay me he was going to be in major trouble with his bank.. then one transaction I brokered a 5 mil apartment and made 2% so 100k.. And that one is like what your describing it was a referral ( actually from the SF event) took me a few weeks to find the property and I suspect I did not put more than maybe 20 hours into that deal..I no longer broker real estate except for my new builds in Oregon.. All the other states I hire brokers. And we for sure negotiate on commish.. In Oregon for my new project here when the market was red hot Lennar was only paying brokers 5k to bring a buyer.. I was paying double that but these were 700k houses so 2 to 3 % like old days would have been what 14 to 21k per house I was paying 10k.. then when the rates went up and sales got tougher we adjusted up to 2% .. Then the new laws came in and we negotiate each commission as they come in.. But I never offer less than 10k or more than 2%. We have product that is coveted..

So its all over the map.. Best of luck

6 Votes

Quote from @Rachel Weiss:

Quote from @Jay Hinrichs:

good luck getting an agent that works the LUX market for 10k..

Now if the market is SO good that they just list on MLS and duck.. thats one thing.

But if its like most props in those price ranges. marketing cost might be 10k alone.

Your points are common feedback with RE brokerage commissions they are as you know negotiable. no one is forcing you to sign with a broker.

lastly most brokers in the LUX market would not even come close to entertaining what your offering.. they would be thanks but no thanks. Not worth their time.

what are marketing costs? I pay for staging... when costs do the realtors have?

7 Votes

good luck getting an agent that works the LUX market for 10k..

Now if the market is SO good that they just list on MLS and duck.. thats one thing.

But if its like most props in those price ranges. marketing cost might be 10k alone.

Your points are common feedback with RE brokerage commissions they are as you know negotiable. no one is forcing you to sign with a broker.

lastly most brokers in the LUX market would not even come close to entertaining what your offering.. they would be thanks but no thanks. Not worth their time.

13 Votes

U want to google insurance companies who place their clients that have had fires etc.

thats what I do for the last 5 years.. top quality tenants no need for PM .. backed by insurance.

my unit normal rent about 2k we get double that.. ours is townhouse Gated prime area of Summerlin.. not all areas are great in Vegas the closer to the strip the grungier it gets.

2 Votes

Quote from @Ray Hage:

Quote from @Jeremy H.:

I have a couple friends that bought condos around PCB in the last few years - it hasn't been a pretty sight. The initial condo had a huge assessment that was based on square footage (something to do with the foundation) - so they ended up selling to try to get out of the assessment.

That condo was at the Shores of Panama. I don't know whatever happened to the court case, but I do remember it was in the 60-80million range of renovations apparently needed to the structure.

They sold that condo after a year - mixed reviews on AirBnB and VRBO and bought at Regency Towers. The condo at Regency Towers has been listed since May 2024 - started at 500k and down to 450k now with apparently zero interest. They bought the condo at Regency Towers for 475k in 2024. I believe they are losing money pretty badly at Regency Towers. A quick look at AirBnB and VRBO shows completely open availability through the entire year (including June/July/Aug/Sept). This is not a great sign.

For me personally, I can't get the STR numbers to work. Between the extra AirBnB fees, special assessments, silly parking they have going on, it doesn't look good for me in the PCB area.

Unfortunately these are common stories. I just spoke with a lender who is also an investor and trying to get rid of his condos. Unfortunately, people are going to lose their butts on condos unless they got them crazy cheap many years ago.

I own a TH with a HOA but so far have been unaffected....though I am wondering do I keep holding or sell? I feel it is a gamble either way

naive question but is summer season the high season I would think winter would be you know people getting out of the snow ? I have been to FLA in Summer and thats some tough weather .

Kind of like PHX Vegas and Palm springs summer is dead and winter is high season.

1 Vote

Miami, Florida

Quote from @Shiloh Lundahl:

@Tony Pellettieri Interested deferred second position notes at 15% leveraging the properties at no more than 70% of the current value for 24 -36 months on properties you plan to sell during that time. Use the money only to stabilize assets and yourself. Don't buy any more assets until your reserves are filled again. It is possible to go broke by buying good deals. Don't let that happen to you.

those would be tough to land shiloh maybe friends or family.

my advice FWIW is total liquidation IE sell it all.. get out of debt and start over . 1.4 mil in equity probably will realistically boil down to less than half of that in cash.. But even if one ended up with 500k in cash .. thats a nice nest egg to start over with and realize that there is a ton more to RE investing than collecting doors and debt.

2 Votes

Columbia, South Carolina

Quote from @Don Konipol:

Is the educational system in this country so BAD that so many people believe if you’ve deposited $100k with an institution and they “sent you” $1,000 monthly for 100 months you’ve created and income of $1,000 monthly for yourself?

LOL

1 Vote

Boston, Massachusetts

Quote from @Ray Hage:

Quote from @Marcus Auerbach:

Quote from @Ray Hage:

I don't think it will be crashing on the whole....condos, however, yes I see a crash that has already started months ago and going to get worse soon. For SFH, small MF, most commercial, etc should have a correction.

I just pulled MLS data last night. Dade has 5.6 months of inventory of SFH and Broward 5.1 months as Jan 2025. Don't get me wrong, it could get worse but I wouldn't freak out yet. I think we are just normalizing.

Just now out of curiosity, I just pulled Broward data for condos/TH and it is 10.8 months and 11.9 months for Dade! Data can be dangerous if you're not looking at the details.

Yeah, this is RPR data, so it's SF+condos combined. So seems like it's more a condo issue at the moment, which points me to second homes and not Airbnb as the main driver.

As an investor, I am always looking for opportunities and you have a lot more leverage to negotiate in a high inventory market. In my market, anything good goes way over list.

And for agents changes in the market mean more transactions, so that's good in my book. I work mostly with relocation and higher-end clients and consumers think a super hot market is good for agents. It sucks, I'd rather have 2 offers on a listing and a day to review than 12 offers and 2h binding acceptance! And on the buyer side it's just brutal without inventory. So I'd love for my market to cool off a bit!

The question for me is what are real specific reasons WHY this is happening in S-FL? When you understand the reasons you can form an opinion on the extent of this situation and what will happen next. What do you see?

For the "why" regarding condos...high HOA fees (like 1000/mo...something like 400-500 is now "very low"), high insurance costs, overbuilding (everyday it seems like new building is going up) and high property taxes. Regarding property taxes, they were always high but it's one thing when a condo cost 150k in 2020 and that same exact condo is 350k now. I don't see a good solution to prevent a further crashing for condos.

If they can get insurance rates and mortgage rates to come down a little, we would have a light correction imo for SFH. I don't foresee property taxes going down no matter what DeSantis says. I hope the property taxes go away but I don't think it is likely

talk of eliminating property tax in FLA is that what your saying ?? Dont see how that could even remotely be possible when U have NO state income tax .. Unlike NV that has massive income from Gambling

1 Vote

Miami, Florida

Quote from @Scott Trench:

We just are testing it out!

If it's helpful and we can measure a business impact, we will scale. If it's not, we will try something else!

my thought is you take on some risk doing this.. if the info you are providing does not pan out.. you know investors they take a loss and its never their fault its always someone else.

1 Vote

Quote from @Nicholas L.:

@Marcus Auerbach

i peruse condo listings in FL periodically and what i see more and more is a lot of 'low' prices with sky high monthly HOA fees. i really don't know how that plays out. @Jay Hinrichs what do you think - will those old buildings be able to recover with new owners that can better afford the HOA fees?

Kind of reminds me of some of the golf course communities out here where if you bought a lot you had to pay the 100k transfer fee for the membership and 1k a month dues.. U saw all sorts of lots listed for 5 dollars.. folks just wanted out of debt. And the orginal buyers not only paid the 100k for memberships but 100 to 300k for the lots on top of it.

So in my mind those that buoght long ago for not much.. probably just want out of fixed debt those that paid top of market within 6 months of the buidling failure and new rules coming in are going to take a bath.. RE has risks.

2 Votes

Miami, Florida

All Forum Posts by: Jay Hinrichs

Jay Hinrichs has started 323 posts and replied 41111 times.

Post: High Realtor Fees, Can someone explain?

Post: High Realtor Fees, Can someone explain?

Post: High Realtor Fees, Can someone explain?

Post: Medium term rental in Las Vegas

Post: Is the Florida market about to correct? (or crash??)

Post: 1yr BRRRR/Value Add = $1,440,600 in portfolio equity but no money in the bank, HELP

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Post: Is the Florida market about to correct? (or crash??)

Post: New: BiggerPockets Concierge! Call us at 720-902-8552, Anytime , For Free Help

Post: Is the Florida market about to correct? (or crash??)

Jay Hinrichs has started 323 posts and replied 41111 times.

Rounded Star Post: High Realtor Fees, Can someone explain?

Rounded Star Post: High Realtor Fees, Can someone explain?

Rounded Star Post: High Realtor Fees, Can someone explain?

Rounded Star Post: Medium term rental in Las Vegas

Rounded Star Post: Is the Florida market about to correct? (or crash??)

Rounded Star Post: 1yr BRRRR/Value Add = $1,440,600 in portfolio equity but no money in the bank, HELP

Rounded Star Post: Has anyone worked with Tardus Wealth Strategies?

Rounded Star Post: Is the Florida market about to correct? (or crash??)

Rounded Star Post: New: BiggerPockets Concierge! Call us at 720-902-8552, Anytime , For Free Help

Rounded Star Post: Is the Florida market about to correct? (or crash??)

Post: High Realtor Fees, Can someone explain?

Post: High Realtor Fees, Can someone explain?

Post: High Realtor Fees, Can someone explain?

Post: Medium term rental in Las Vegas

Post: Is the Florida market about to correct? (or crash??)

Post: 1yr BRRRR/Value Add = $1,440,600 in portfolio equity but no money in the bank, HELP

Post: Has anyone worked with Tardus Wealth Strategies?

Post: Is the Florida market about to correct? (or crash??)

Post: New: BiggerPockets Concierge! Call us at 720-902-8552, Anytime , For Free Help

Post: Is the Florida market about to correct? (or crash??)