All Forum Posts by: Jeff Terry

@Jeff Terry

I think the realtor should at least be giving you some advise knowing that you’re not from the area and don’t know costs to fix certain things. I would say to find a different agent

Every agent is different. When I view properties for my clients I'll give my thoughts on rehab numbers(we verify with a GC), market rent and ARV. We can't steer you because there is limitations but they can give their thoughts. Usually the rental rates will give you an idea of the type of area

@Jeff Terry  I think both of your questions under those contexts are difficult to answer.  Back tracking a little bit have you had a discussion with your agent regarding your goals and what you are looking to get out of your investment properties?  Who's to say a warzone is not a good neighborhood for rentals if the numbers work.  If someone is suggesting work to be done to a unit and they are not backing it up with numbers to me that is slightly odd.  So my question is are you making rehab suggestions or is your realtor? 

If they comment on the quality of the neighborhood, and there is a Fair Housing tester making that call, they may end up with a $16,000 fine for illegal steering.

Yes @Jeff Terry, there are things that we as Realtors can and cannot say, such as answer "is this a good neighborhood for rentals?" Well, any neighborhood can be good for rentals as long as the numbers work out. Regarding rehab estimates, they should be able to saw what a house needs to be rent ready regarding the class of the neighborhood (you're not putting granite countertops in a D neighborhood and you're not getting the cheapest carpet possible for an A neighborhood), but to start giving you actual rehab estimates starts to get into the grey area. You really do need a Realtor who is also an Investor to truly see these properties through their eyes. However, it's up to you to educate yourself on what prices for floors, painting, appliances, etc are in your area. You can contact a local flooring company or go to Home Depot and see what general cost per sq foot are for carpet, vinyl plank, etc and take your room measurements from the MLS listing (or bring a tape measure on the showing) and go to town. Find out what appliances are going to cost for the grade required for the neighborhood. Are you going to do sweat equity of painting or fixing things yourself? Find some local investors here on BP for that area, they can likely point you in the direction of trusted companies that can help you with these estimates as well. If you do this enough, you won't need your Realtor to tell you because you'll be an experienced Investor.

@Jeff Terry

I personally dont think you are asking to much from a realtor. You are just asking to much from this realtor. From my experience as a property manager, most realtors do not understand the mind frame of an investor. The are focused on selling you a house to gain a commission. Always ask realtors do you invest in real estate yourself. You definitely want to find and agent who can understand where you are coming from.

@Jeff Terry is this a good neighborhood for rentals is somewhat a tricky question. The agent may be fearful of getting in trouble over the fair housing laws. I hear there are people out there testing agents for violations of this sort of thing and since he probably doesnt know you well doesnt want to answer.

Are you in the stage of running numbers on potential investments yet? If so, and need a hand please send me a message. I consult with new investors to help them make strong investment decisions in order to ensure longevity in the real estate game. Strong financial forecasting and building the right team in a market make all the difference!

Best,

Brian H 

When I bought a home in Bloomington, Indiana, I got my realtor from these forums, he was also an investor so he knew how to answer all of the questions I wanted answered.

Thank you! This is likely how we'll pursue our future partnerships. 
And Bloomington is beautiful, BTW.