All Forum Posts by: Julien Jeannot

@Bat-Erdene Chagnaa

Given Seattle's every changing lovely landlord laws I'd recommend getting to know

https://www.rhawa.org/

They have great information and forms for you to use.

Quote from @Account Closed:

Quote from @Lisa R.:

@Account Closed

98208. It’s a third of an acre and the houses on it need to be torn down and a septic tank removed and connected to city sewer. 

Beautful area. It will sell quickly.

 Agreed. I own a duplex on .57 acres in 98208 and its definitely a seller's market up there.

My buyers in that area are competing in 10+ offer scenarios with waived inspections and other contingencies. Lots of investors hunting around, especially with the new middle market initiative now imposed in WA. Granted for move in ready houses, house hacks or even flips.

@Lisa R. Since it sounds like a nice opportunity for a developer. Now, I'm real curious.

- How close is the sewer from the lot?

- Topographic level?

- Corner lot? Any access to the back of the property?

Another way to back into the a price a developer would be willing to pay is to figure out the best use of the land, hard and soft cost to build cost, holding cost, and profit margin.

I'd suggest a realtor who specializes in that type of product with active clients. Not my specialty, but I know a few.

Quote from @Jonathan Bock:

Quote from @Lisa R.:

@Julien Jeannot

Thank you Julien! I probably am a little off in my asking price… that’s okay though. It’s not worth me giving thousands away to a realtor. The buyer and I both are not using realtors. 
I appreciate you taking the time to give me your opinion! 
Lisa 

 I’ve made this mistake plenty of times it’s pennywise and pound foolish most times unless you already have lots of relationships.  As you progress in real estate it will pay to have a producer who can more than earn their commission and put more in your pocket at the same time.  

 Solid point, I just had a client decide to sell on their own and left $200k+ on the table. Would have more than covered my compensation. 

Quote from @Theresa Harris:

I'd call a local company and ask them.  They are in the best position to give you an estimate.

 I second that.

@Lisa R.

Couple tips to keep in mind for a successful listing:

The listing price is part of a pricing strategy, make sure you've got that figured out to take advantage of this market.

Market comps along with a competitive analysis are just 2 data point, be sure to have a line into what is happening in real time. Depending on the market and neighborhood those can be outdated very quickly. For example if properties within a 3mi radius are going pending $50k to $100k above listing with 25+ offers, that changes the approach to achieve the highest price with best terms as possible.

Something else to keep in mind. You'll be up against agents who negotiate for living who understand contracts and contingencies inside and out.

Totally doable for sale by owner. I wish you the best.

@Cris Roman

Welcome Cris! Always nice to see another local join the community.

@James Bing

Networking at the local RIEAs and Facebook groups.

There are a few power players in the area, deals flow has been low these days, and lots of non deals being floated about.

Generally here is how the priority list goes and its based on ROI:

1. Wholesaler looking for their own deals and keeping the best. Usually BRRRRs.

2. Wholesale will flip themselves if the margin is good enough.

3. Not enough margin, not their criteria or no bandwith: the deal goes to their VIP list, mastermind students, and regular clients.

4. If no ones wants it, the "deal" goes to the masses or they will list the property themselves.

Quote from @Zeke Nickie:

Quote from @Lien Vuong:

Quote from @Julien Jeannot:

@Zeke Nickie

Price point is irrelevant. As a new investor, it will be dictated by your financial situation, risk tolerance, and strategy.

 Exactly, poster doesnt have direction and wants us to give him the answer without any 

I want to get into multi-family, section 8, and STR those are the directions I’m researching and look into. The post was to get more insight on how other first-time and seasoned investors started out. For even more context I am a full time student with about 25-30k to possibly put aside to take those steps to start investing. What would you recommend?

That helps. I find when start up capital is small, the house hack strategy is very effective at building equity while reducing cost of living. That builds the base for rest.

Save as much as you can and narrow your strategy to one. Mutli, section 8, and STR are unique in all aspects: acquisition, operations, and scaling.

@Zeke Nickie

Price point is irrelevant. As a new investor, it will be dictated by your financial situation, risk tolerance, and strategy.

@Jacob G.

Since its a long term strategy, I'd play out the complete math and account for:

-Conservative appreciation

-YOY rent increases

-Principle pay down

-Entry & exit costs

-Tax implications

- vs opportunity cost: rent & return on capital not deployed.