All Forum Posts by: Jonathan Greene

@Marion Lee Of course, a Master en suite is always preferable, but some floorplans just won't cooperate. I've received similar feedback, but usually it was because the buyers and the agent didn't have full view of the market yet. Like they had not seen enough houses to know that not all of them will have en suite and when you get a flip everything is basically new opposed to the other homes they will find with an en suite, but no HVAC and old windows.

@Timothy Douglas If you didn't hit local REI meetups, that is the #1 best way to just force yourself into the mix. If you are consistent with that, good things will follow.

@Johnoson Crutchfield What?!? I'm glad that worked out. I order a survey every time with title. Once in a while it will save you from something major, but more often than not I find some old easements or extra property in a yard that extended farther than I thought.

@Lynnette E. I know people claim they can make a house smoke-free again, but it just can't work for me. My sense of smell is like bionic so I can't even flip smoke houses because I can't go inside them. I'm glad you finally got it worked out, but the air ducts hold more in than we think when the company doesn't do it correctly. That air duct job to remove smoke should take 4-5 hours in my opinion with double bleaching.

@Tim Harwick For a lot of people who get stuck right before starting in REI it's for similar reasons. In my opinion the best jumpstart is just to see properties. So sometimes making friends with an agent/investor who has access, if you don't, can spur the whole thing. Until you are seeing a bunch in real life it's almost like an online game, but you have to make it real.

@James Wise I hope no one else got hit with a giant lawsuit like that one, but most of us know what's behind that one.

@Sri Tulls When you say evaluate, were those in-person viewings or was this all OOS/online evaluation? Even for people who don't want to or can't invest in their local market, I think it's of the utmost importance to see 25 homes at least before even making offers. It's the only way to really get it in real life. If you saw that many, at least you were ready to offer by having your financing lined up when you did. Too many people see good deals, but can't get them because their financing isn't solid so 2020 should be a huge upswing for you.

@Larkin Adey thanks. I think "He is not a tile guy" could apply to every lesson where we gave a non-expert a shot at a new project. When we are rushed on time and busy with other projects, we tend to cut corners with someone we know and as you said, "Don't cut corners" is what should sit in our mind all the time. At least it was fixable.

@Tim Rostro what you describe makes sense to me because you are focused on long-term goals. Sure, this one came with a few more warts, but you know the location is where you want and you accept it will run light for the first year, but then grow. I like it. It's a good lesson though for new OOS investors who don't think long-term that the short-term can be unexpected when you don't visit.

@Ola Dantis I think one is coming in late 2020, but I am still looking. I have been more focused on flips though instead of holds, but as long as we know we can ride out a dip and the deal is good, we will be ok on the other side of that dip with the holds.

@Scott Passman It sounds like you are making lemonade out of some bruised lemons. Good move to do a few more upgrades while you are at the floors.

@Tim Rostro That was a rough go, but thanks for all of the information. You seem like you are handling that really well. Do you think part of the issue was being OOS and not having enough real eyes on it? This from you was absolute gold and something we should all remember when we hold "This is a buy and hold property I'm keeping for a long time. I also consider the first year or year and a half of any new property lost time and income due to deferred repairs from the previous regime that I had to correct." Happy holidays!

@Pat L. We are seeing a lot of that in here. Tenants + drugs = immediate eviction with any grounds we can find because it's not going to end well. I do what you do though and agree. Sometimes when I have a bad run on a property I just sell it and move the money into something else that I can start fresh on.

@Andrew Postell I think we all have those, but it's safer when we don't try to get them all. But we always love the ones that got away. I have one right now that is about to get away and I know I am going to regret it, but I just can't meet their price.

@Christopher Sparacino I think you hit on two great points. Fear can keep us from growing, but you seem like you found the thing you are best at and are working with someone to maximize your strengths. That's a great way to get on a roll and then once you feel more confident about the part that scared you before, you can begin to branch out in 2020.

@Matthew Anderson I think a lot of us have done that. I tend to feel like embarrassed sometimes to call out my lender or title company on errors, which makes no sense. We are the end client. I'm glad it's on track to close - congrats!

@Clifford Paul It's weird when our go-to guys can't do something the right way. You'd think they could nail a fence. But at least the cost was low enough to figure it out. If that's the worst of 2019, your year was probably pretty good.

@Dennis M. That is a huge listen for all levels of experienced landlords. We all feel bad for someone and usually come to regret it. I've done that many times and am still stuck regretting one. I think when it comes to recent addiction, the business decision would always tell us to pass based on percentages and potential damage from that coming up again, not just to the unit, but to other tenants as you said.

@Scott Passman That's a rough one, but at least you are straightening it out now. Was that OOS turnkey or were you able to see it in person. I was wondering if distance played a role in that.

@Mark Fries I think that adequately explains all of us. Sometimes we find more comfort, angst, fun, or learning in the forums here, but we would all be better served by taking our knowledge and connections and putting them to use in the real world. Thanks for the good reminder that we all need.

@Charlie MacPherson Oh, man. That's a story I have watched play out over and over. Do you think he was too hopeful or checked out or both. Anytime an investor lacks oversight and trusts someone on design decisions who is not an architect or interior designer, it's trouble. The weirdest part of the saga to me was sticking with the old floorplan. What a waste of time for you, but it is part of the job we take on. There is a lot of good information in your post for new flippers and OOS because not being hands-on will allow so much of this to happen.

@Ryan L. Damn. What were the repairs on that one? About two years ago I started doing full camera sewer inspections on all properties after buying a primary residence and not doing one and finding out I had all clay pipes to the street and they were all rooted by trees. Full replacement at $15k.

@Michael Spindler I used to have a large team of about 10+, mostly buyer's agents. They traded off a little more split in favor of leads and enhanced training and mentorship. I think in your first year it would be invaluable to join a team and just focus on buyers. But I wouldn't stay there too much longer because after a year you will inevitably get seller leads and when you are on a team, they will poach a percentage. Most of us when we start just end up working with buyers until listings come since listing agents usually need more experience in the eyes of a seller.

The best way to get started on your own is just to mine your sphere in a nice way. You don't have text everyone and ask if they know someone who is looking, but look at them and think who is ready to rent or buy. Also for new agents, I don't think focusing on renters is a bad way to start. They usually pay quickly, have less issues, and don't have to look at as many properties as buyers. Although the pay is less, usually a 1/2 month minus brokerage fees, renters get you ready for buyers.

If the church has their church and four homes and you own the only other home, I see them as more likely to buy you out than you buy them out of all the houses. Do you know how they are doing or if they are struggling? The way I look at business or colleges that acquire local housing, they are usually the ones with a longer term plan. I would think they'd like to talk, but to buy you out and close the loop on the area.

I agree with @Mark Durham. Wholesaling is not a great place to start. Are you just getting started as an agent or you have been an agent and want to get into REI? Wholesaling sounds attractive because it's something you can do and not spend your own money, but that's exactly what makes it so hard because there are so many contingencies in all of the deals. If your goal is money, you would probably have a safer upswing learning more on the agent side if you are new.