All Forum Posts by: Jose L Torres

@Jed Burkey Hi Jed,  I am always upfront about it.  I find it that when you take this approach, you create a trust relationship immediately because you have nothing to hide and your clients, buyers, or sellers, appreciate that.

@Jed Burkey Hi Jed,  There is no conflict of interest because you are a Real Estate Associate buying or selling property for yourself. You do however have to disclose.

To disclose you complete a "Licensee Disclosure of Personal Interest" in which you would write your name, the information on the property in question and whether your interest is in buying or selling the property.  It is a 1 page disclosure (in FL it is CR-5x_AA). The disclosure is provided to the seller or buyer depending on which side of the transaction you are in. 

As a Real Estate Agent, every property I see; my first question is always, is this a good investment for me. If it is, I will try to buy it.

You do however, need to discuss this with your broker. They do need to know what you are doing and depending on who you work with, the brokerage will have its own set of rules around commissions as it relates to personal investments.

Hope this helps!

@Joshua Rountree Thank you Joshua!  A week or so ago, I heard they had an offer on the table.  I was willing to go $185K and they told me it was not close to what was offered on the property. So looking for my next best deal.

Thank you @Jaysen Medhurst!  This was really helpful.

@Juan Nieto Hi Juan,  Thank you for your feedback.  Please check out my response to Jaysen and let me know your thoughts.

@Jaysen Medhurst Hi Jaysen,  Thank you for the feedback. 

The property has a track record of 3 years getting rent at that level (Above $900). It is in a very desirable location.  If I was looking at comps for a home that size (2b2b) it would be on the mark for that area.  I was not able to find any duplexes that sold in the last 6 months in that area to be able to do an apples to apples comparison. 

Also when I check Rent-O-Meter the rents are in the 75% percentile.  I walked the property and it has been updated in the past couple of years and it is very clean.  Unless something comes out on inspection, I think it would need minimal fixing.

The numbers I used came from the P&L of the current owner who has been renting the property and provided the last 2 years of P&L.  Taxes would be the only thing that will probably come out higher.

The loan rates I am using is because I would have to use an investment product that uses rent as the means to support loan.  With me switching to Real Estate Full Time, I do not have the 2 years of 1099s to support standard loans even though my income was very high over the past 5 years.

To me the property is overpriced, because the level of rent does not support the $235K asking price. If I use the 2% Rule, at $185K I would only be at 1.07% which is not a bargain, but I could live with that. The COC Return would be close to 10%. On the 50% Rule I come up with a little less than $200/month.

So my thought on putting this deal together was, what is the price that would make sense for me to move forward if not walk away.  

Based on the above information, is this a deal you would take?

Thank you for your feedback and advise.  It was very helpful and it gave me a couple of other things to think about.

So, the big question for me was this.  In order for the deal to work for me, I would need to have a certain return. At the current price, assuming fair market value I would not be 

@Michael Steward Hi Michael,  Any education that is going to help you become a better investor is always good.  If you are planning on doing more with Real Estate, I would suggest getting your license.  You will have more access to training, tools, resources and information by being an agent.  There is a financial investment in becoming an agent so please keep that in mind.

Best of luck to you!

View report

*This link comes directly from our calculators, based on information input by the member who posted.

@Account Closed Hi Micah!  Welcome to the KW Family.  My advise is to make the educational investment and sign-up for BOLD.  This will give you all the tools you need to succeed.  The mindset, tools and methods to do it with. 

Look me up in Kelle once you get started

Best of luck!

@Braden Klope Braden, there are three types of relationships in Real Estate: Single Agency, Transaction and No broker.  Only the first one carries a fiduciary responsibility to either buyer or seller. 

Buyer’s Agents are paid for performance. Meaning they only get paid when the transaction closes and their commission comes from the seller’s proceeds.   That said in a Buyer’s Single Agency relationship the agent is there to fight for you and help negotiate, find information that may not necessarily come out from the seller’s agent and make sure you know everything there is to know about that property before you commit to a purchase. 

I work with investors as a Buyer’s Broker Single Agent.  My job is to dig up all the details about any particular property ensure that they know as much as possible prior to making an offer. They are my priority.

I hope this helps you in your decision.