All Forum Posts by: Josh Rowland

@James Wise I would not serve notice on a big holiday. Not only because I think it’s harsh but because I wouldn’t want to work on that holiday myself. It’s pretty easy and non-urgent to serve it a day or two later. If there were extenuating circumstances on my end and very strict deadlines I needed to meet for one reason or another I would post the notice but I’d let the tenants know that it’s coming ahead of time. You reap what you sow man. If you’re the kind of unforgiving harsh judge mental person in life you’re more likely to attract like-minded individuals and be treated in the same way. I follow a tough but kind approach in life and business.

Thanks for the feedback guys. It's helpful and encouraging to know that I'm doing the same things that my colleagues are. I think I've had good and bad experiences talking to investors about flips and listings and I've come across a couple that put a bad taste in my mouth. Those ones must have gone to "the seminar" and come out guns blazing with not a lot of real world knowledge or market experience... some of them have even approached me and said they want me to write offers for them but when I ask for their funding source they can't seem to come up with one and come to find out they want to assign the contract. I do have a lot of fun serving investors and being an investor I think I just need to meet more investors that are a pleasure to work with. 

Originally posted by @David D Painter:

One who doesn't waste my time

 Hey David, please elaborate. I'm sure there are folks out there who waste time but I'd love a few examples. I'm more concerned with what makes a good agent for the investor. I've heard writing multiple offers sight unseen, providing lots of comps and doing lots of ground work to get a deal but I'm wondering if there's anything else other investors are really hungry for that they don't find or that are rare and I like to know what my peers around the country are doing for investors. Most realtors I talk to will work with investors but the line share try not to for the following reasons...

I've worked with a few investors and done about 5-6 investor related transactions so far. From my experience the flippers want me to bring them deals and then they want me to turn around and list for 4% which means I take 1% and pay the buyers agent 3%. I've turned down some of those offers because I can't justify spending my professional time for 1/3 the income on listings that I frequently make working with consumers. I've even had a couple guys go with the "discount agent" and call me later on to ask me why their property isn't selling and when I look at the listings it's quite obvious that they just don't know what they are doing and the marketing is garbage and their agent is basically a warm body to post to the MLS and take orders. That's not at all the kind of agent I am and I have to make the margins I need to reinvest in my business and provide excellent service.

This post is really more about what makes a good Investor-Friendly Agent so keep it coming. 

PS. Cash only on the MLS usually means the condition is not good enough that a lender would fund the deal.

Speaking as an agent in Colorado... Sounds like a great opportunity to explore BUT it could be a construction/environmental hazard. I've looked at several deals that pop up with great spreads on the MLS and I've noticed a trend... they are on the MLS because it's a seller's market and they can unload something that performs (no matter how much of a time-bomb they are) to inexperienced investors willing to do anything for cash flow. Keep in mind a deal on the MLS has a broker in the middle keeping you from asking questions directly to the seller. This broker has also likely given their advice on list price and is protecting the seller from saying anything stupid that could hurt them. They are only required to disclose material facts that are obviously wrong by visual observation and if it's rented out the broker may not have set foot inside. Look and see if the property is listed by the local county assessor as a duplex or 4-plex. Compare number of beds/baths listed in MLS to number of beds/baths in assessor records. Search for permit records and see if there are any legal construction permits in the last 20 years. Get on maps street view and look around the neighborhood. Talk to a local PM about the area. Consider doing a full inspection (first thing when under contract) and look for mold/meth/asbestos issues. Bring a good contractor to inspection to go through it with a fine tooth comb from their point of view (inspectors always miss things and are often wrong on construction codes). Ask yourself why would someone unload something that cheap with those kinds of spreads. Most of the time when a seller has thought hard enough to put an asset on the open market at that low of a price I have found that the repairs/maintenance/problem solving it would take to get the property up to safe/insurable living standards offset the deal enough that it would be the same or better to pay market rate for an A or B grade property in a good area that's already in reasonable condition and will last you a while without having to sink tons of money into it. Put on a pessimistic hat and pick this thing apart and if it still looks like a good deal then you've just found a phenomenal opportunity. There's a few ways to approach residential cash-flow investing... buy-hold an asset and make spreads over time that slowly build OR jump into a discounted situation and add the value by casting the vision, doing the work/repairs, turning that $2400/mo cash flow into much more and getting rewarded for all your blood/sweat/tears/RISK. Unfortunately in a seller's market there is increased competition to acquire properties which means an increasing number of investors who are willing to spend all that time, money, and risk on an asset and not see any positive returns for a while. If you decide to become a value-added investor you need to make money on the buy AND have good people in your corner to help with repairs/maintenance/management. Podcasts and books can train your brain but the real education starts when you get in the market, build all your contacts for contractors, managers, realtor/s, mentors, and go through all the motions to buy the property and execute the vision. You may have several "practice runs" where you put something under contract, get it inspected and assessed for improvements and cash flow several times before you actually learn what your comfort level and skill level is assuming all this risk. Lastly, get rid of that CC debt, it's not doing you any favors... Convenience is expensive...

Hey guys, I've been contemplating this when I see it but what do YOU mean when you say you're looking for an investor friendly agent? In my experience working with investors they usually mean they want discount agents to work for a fraction of the price that the resale market pays... So what do YOU look for or offer as an Investor-Friendly agent?

My adventure vehicle - 07 FJ Cruiser. Bought it used this year for $15,700 (first car payment which is pretty manageable @ 3.25 APR). FUN mountain vehicle and plenty of interior room.

My wife sticks to her '01 Jetta TDI - 240k miles and I keep it running like a top. I think we'll keep this one another year or two until the tranny starts to fade out and then get a newer TDI with less miles.  

I bet the first thing the advisor will want to know is if you have a plan in place or even if you know what kinds of transactions you will be focusing on. He won't be much help if you sit down and ask him to teach you real estate tax law because he won't know how to help you. I think you need to put some more meat on this bone by letting us and him/her know exactly what you are trying to accomplish and what your approach looks like; we are otherwise shooting in the dark with where to direct you. Maybe you would want to know how trusts work or if it is better to buy properties under an llc or even your own name (assuming you are trying to acquire rentals). Perhaps you would want to know how to structure a business as a sole prop or as a partnership, what type of corporation to form, what kind of accounting methods to use, etc. Are you wanting to manage property belonging to others? In that case you would need proper licensing, proper trust accounts, and understand how the flow of money works when handling your tenant's money. You will get better advise if you can help the advisor clearly understand what your goals and direction look like and how you are going to get there.

Hey Folks,

So about a month ago I asked what brokerage people went with in the beginning and I received some useful information. Now that I have finished the coursework and passed my licensing exam I am narrowing my options as to where to hang my license. 

My questions here... 

1) What would be your advice on picking a brokerage that will allow you to work with investors on creative deals? 

It seems when I go talk to the big brokerages in town (REMAX, KELLER, ERA) the managers get freaked out when I ask them if they have heard of subject-to financing, wholesaling, assigning a contract to another party, or even managing property. 

I am getting the impression that the big shops are very singularly focused on residential listings and NOTHING else. The managers I speak with automatically assume that I want to screw the public over and do something that will make them loose their license (or E&O insurance) when I ask them about these other approaches to RE. This triggers a conversation where I explain my intentions are not to cause harm to anyone or take advantage of anyone in this business and that I am making this my career (then they calm down and relax).

2) As an agent working on creative deals, how do you navigate your relationship with your Employing Broker? Are you able to wholesale transactions and assign contracts? Are you able to manage property for others? Are you able to partner with investors to flip properties? Are you guys doing any subject-to deals? 

Help me out here... I'm stressing about my new license because of the greater level of restrictions placed on Associate and Employing Brokers in Colorado. I want to be able to experiment with creative deals and build wealth for myself and others. I want to be free to do deals outside of the typical residential listings and purchase contracts (although I will still do listings and such). 

@Michael Woodward Thanks for the encouragement. 

Out of curiosity, anyone in Colorado Springs had experience with RE/MAX Properties or Keller Williams in Briargate?