All Forum Posts by: Justin Rademacher

I use a list of 7 negotiating questions to help determine the motivation of the seller. Taking that into consideration along with my investors goals I outline a strategy with the investor prior to making an offer. 

It also depends on if there are multiple offers or not? How long has it been on the market?

Really good listing agents are good at not giving out too much information however, with the proper questions ahead of time...you can usually get a sense for what motivates the seller. It's definitely not always price!

The short answer is obviously it depends on your investment goals. 

The more in-depth answer would be to take a look at the time and return on just the 1 property vs investing in 4 to 5 others in different markets. Depending on the market, you can get great cash flow and have fantastic appreciation. This is especially true in one of the markets I work in (Minneapolis). 

Without knowing too much of the numbers my suggestion would be to find 3 to 4 properties in markets that have good/decent cash flow and have a really high appreciation rate. Find some opportunities for value add potential without having to do a big renovation. Next, find an agent in that market that knows what they are doing and specializes with out of state investors and investment properties.  

Hope that info helps

I am an agent who specializes in working with out of state investors. Here are my thoughts on this:

You have to make sure you are providing value they can not obtain on their own. In my experience working with investors, I provide the value of time. Most of the investors have other jobs and/or are agents themselves. 

My value to them is 1. finding the right deal that matches their investment goals 2. Arranging for property management inspections etc and 3. negotiating the deal in their favor to meet or exceed their investment strategy. 

I use a spreadsheet that allows me to analyze properties quickly whether it be strs or mtrs or ltrs. This allows me to put the right deals infront of the investors and leverage their time. 

I hope this information helps

Not being in CA but having experience in the rental market side of the real estate industry I would say that it all depends on your goals. If you can generate close to the 1% rule on the property, you should be cash flowing very nicely per month. That being said, the loss you have seen seems to be two fold. 1. Obviously you had bad experience with the tenants 2. The property management company seems less than ideal.

Before you decide to sell ask yourself your goals. Are you still wanting the long term investment or would you rather employ your exit strategy now? If you would still like the long term option. I would interview reputable property management companies. Ask them for references and ask them key questions like their occupancy rating, location they primarily focus on, and fees. 

Nationwide avg. fee is about 10%. I have negotiated with numerous PM companies for 8% under the promise that they would be the only PM company I use in that area providing that they place good tenants and quick. 

Hope this helps a little

I work in the SW FL market and right now we are seeing properties staying on the market a little longer than normal. There are numerous price reductions in the area as well. I think in the near future we will see an upswing in long term rental pricing being that over 1000 people a day are moving to FL from around the country