All Forum Posts by: Joseph Beilke

@Heather Wear

Being a realtor allowed me to be very familiar with he the market and what total price I could afford or pinch to an investor to build at and still be able to have a ROI that cash flows. I will say because the property values were raised so much this last assessment, the ROI doesn't look as good, but it still cash flows. Didn't use an architect, used an existing plan. If you would like to know more specifics feel free to call to me or DM. BE happy to talk more about it.

Well after a window delivery mess up we got the proper size windows and dry wall is up.  Looking good and about 90 day out from getting our C of O and already have numerous inquiries by perspective tenants. Going to officially list it about 45 days out. Need to get another one started ASAP!

@Wendy Martin

I have a few investors that I'm looking for and one myself, this could be a option for a few of them.  Would love to learn more about the property, I'll send you a DM.

You can not evict a co-signer, you can only go after them for money, in court after you eviction the tenants, which is more fees and a long process.  No co-signers.

The honest answers is you won't come out good.  This is probably a bad idea, for your friendship.   If you were go into together on a duplex that he does not live in, it might and can come out better.  

Your friend living on the property will become an issue, because you want to run it as a business and he will run it as a home.  You will get burned.  

STR,MTR or LTR are all the same for the most part. It's total income for the year minus ALL expenses and hold backs.

Of course you want to make sure you make enough in occupied months to cover vacant months. But the overall ROI is based on the year. That's how the tax man see it.

With you back ground in construction and remodeling, you might want to talk with a few lender and brokerage broker about  DCRS loans (higher rates, easier to get).  They can be based of projected income.  I would look for a duplex or triplex that needs some love.  Hopefully it has at least one good tenant in place and a vacant unit for you to live in and fix up.  When you done fixing it up switch with your tenant if able, raise the rent, and fix up the other side. Once all this is done you will have equity and can refinance into a standard lower rate 30 fixed.

If you find  Triplex or Quad even better.

You will need to talk to a good number of lender to find a fit for you and your Girlfriend.  Also remember what @Travis Timmons said.

@Colin LaReaux

One of my more recent sales took place east of 95 in Palm Coast and it was for a STR. The buyer has no issue getting insurance on the property. They shopped a few different insurance brokers and were able to insure a Salt water canal home for about 1600 a year.

Would love to talk more about Palm Coast investing with you, PM Sent.

@James Snyder

Are you limited to Duval County? About an hour south in Flagler County in the City of Palm Coast you can really benefit from the Duplex availability here. You can rent one side and it will cover a major portion of your mortgage and if you make it your primary resident you can go FHA and Homestead the property to keep your property taxes a little lower. I am currently building one from the ground up and looking to start a second build very soon. Reach out if this area interest you.

@Billy Knox

Everyone here has said the same thing, in different ways for the most part. What is not being talked about is the massive influx of agents into the business. I get beyond frustrated when I reach out to an agent, be it their first listing or their 100th and they do not have basic facts. I love when an agent says "investor opportunities, instant cash flow", then they don't even have the current rent amounts listed or the lease terms. They only fill in the absolute bare minimum in the MLS. When you call or email requesting information and they don't have it or you question how they got to a certain ROI and they become difficult, this is mainly because they don't see or understand the importance. All these agents have hurt the ones that have mastered the craft and "value" that so many talk about. I do not completely buy into "value", we all have the same tools and marketing options. I believe a great agent bring experience and knowledge which leads to smoother transactions and best overall out come.

Now for pay.  I believe the pay system we have is fine,  Lets break it down to someone who make 100K a year.  So when you look at W-2 earners pay stub you can factor in about 30% more in benefits over the pay.  That brings it to $130K a year.

In Jan 2023 my average days on market is 83, my average sale price is $367,000 and the average commission was 2.5 percent.  Some conflicting reports but it seems the nation average of home sold per agent is been 8-12 depending on the data, for this scenario we will go with 10. This does not take into consideration teams break down and brokerage pyramid splits.

With all that being said. W-2 will bring home after deductions about $2400 every 2 weeks or $62,400 a year.  Which is about just shy of half of their total compensation package.

Let's break down Realtor pay and simple as we can.

$367,000 x .025 = $9,175

20% Broker split. $9,175 - $1,835= $7,340

Taxes 25% pay quarterly $1,835.   

Retirement 15%  Realtor do not have matching contribution or pensions $1101

Health Care for 1  (Florida Blue 43 yo Male)  $350 a month.  

$7340- $1,835-$1101-$350 = $4054 x10

Total yearly take home is $40,540 for a Realtor and the W-2 took home $62,400. That a big difference. But for 20K less the Realtor doesn't have to report to a boss, or request off to go on vacation or take sick days.  The Realtor have more personal responsibility and more flexibility, and that is a big reason so many are draw to the business.  Unfortunately so many are crummy and it hurts all of use.

Yes many will argue that there is many other factors and so many will make a lot more money.  I agree but to say were over paid is just not true for those of us that have mastered our craft and really do have the best interest of both our buyers and seller in mind.  

Great agents bring knowledge, insight, trust, and experience.  

I like to work on my Jeep and I have the time to learn how to repair most things and I enjoy it too.  But sometimes I take it to a shop and have them handle it.  The money spent was worth the time, tools, and experience to have piece of mind.