All Forum Posts by: Joey Hamaoui

What kind of leads are you trying to keep track of? potential tenants?

You can probably use contactually as your CRM. You could build a pipeline and base it around your tenant placement process.

@Muhammad Zakariyya are you opening your own property management company?

I think who you hire would depend on the number of units and your goals. Can you provide a bit more context?

@Kristopher Edwards great starting property!

The annual property taxes seem very low in my opinion. I would check that out.

I would also check when the owner bought it and for how much. It may give you an idea of how much room he has to come down for your offer. It sounds like he's trying to flip this. 

I would also speak with local property managers to get a gauge of how long it should take to get to full occupancy. It could be several months of holding costs before the property is performing at 6.9% CAP.

Hi @Roong K.,

I'm no expert on notes but from what I understand they're predictable investments with fairly low risk and no expenses. The cash flow however is fixed. 

In a rental property your cash flow can be increased over time. That being said you do have expenses and a lot more involvement. 

I love the flow charts you made and use. I think it's a great idea. I was able to take a quick peak into St Johns Property Management thanks to @Corey Clarkston introducing me to their business. They use this in their business here in Jacksonville and I believe they even found a way to shorten the eviction process here. 

I'm a very visual person so the flow chart is so key. 

@Brendon Grover in the state of Florida the buyer would have to honor the lease. If the tenant is on month to month you can give them 2 week notice. If they're not you could ask the owner before purchasing and he may be able to negotiate with the tenant to leave early. 

Hey @Zulf H., 

Did you ever end up opening your property management company?

For anyone looking at this strategy I would caution that this strategy assumes the premise that the agent is the one making the decision to buy the home.

I agree that the statistic from NAR is that 97% of buyers purchase their home through an agent.

The typical agent will only look on the Multiple Listing Service (MLS) for a property.

If my goal in selling the home is to get top dollar I want to expose my home to the largest buyer pool possible to hopefully create competition on the home and sell quickly for more money. This necessitates placing it in the MLS.

Traditionally the only way to get into the MLS was to list your home with an agent.

This is no longer the case. Today you can pay a flat fee to list your home in the MLS.  

In addition, you can place your home FSBO on sites like Zillow and Trulia and get significant interest without the MLS today.

The reason people pay the additional 3% for a listing agent today is primarily for the concierge service, market knowledge and time saved by using a listing agent. 

In the strategy above, the author relies on the premise that offering a 4% incentive to a buyer's agent will sell you home. In theory this makes sense. The agent will be more incentivized to show your home to his client. 

What that doesn't take into account is that the reason listing agents suggest lowering the price if they don't get immediate interest is because homes sell for only 2 reasons. Price and Exposure. If the property is in the MLS you definitely have exposure (although some agents do it a bit better). If the house doesn't get interest it is not because the agent isn't impressed with his 3% commission. It is because the price is too high for the home you offering in that market. The only way to solve that issue is to reduce the price. The agent can whisper in his client's ear all day long but at the end of the day people won't be able to afford more home just because the buyer's agent will make more and they won't overpay for a home either.

If you're looking to save money as an investor you can use a flat fee service and sell the home yourself or you can hire a listing agent and pay for the additional services they bring you (marketing, showings, follow-up, negotiating, market knowledge, etc.). 

Feel free to connect if you are in such a situation and want some advice. 

@Justin Fraser

I'm slowly building up a turnkey-company with a more concierge approach for out-of-state and foreign investors. We basically offer all of the services of a turn-key company without the commitments.

What markets are you in?

Hey @Justin Fraser, What do you guys do? Flips or buy and holds?