All Forum Posts by: Kai Kopsch

@Account Closed Hertzlich Wilkommen in Langenfeld! I used to be a Real Estate Agent in Germany. The first thing I would like to know as a business owner in Germany would be the work permit status and health insurance status of an applicant and how are they connected to Real Estate. If not already done I would put this key information in your application for a (Praktikum) 

Best of luck in Germany please eat a Döner for me the one thing I miss most!

We have had some huge changes in the Charlotte region's real estate market in the past month. 

-new listings are down by -30.2%

-Median Sales Price +1.9%

-Homes Closed -20.7% 

Affordability constraints have continued to limit homebuying activity this summer, with existing home sales falling month-over-month in CLT. We see every day on TV that the home prices have remained near record highs, with a national median sales price of $410,200. But is that really the reality? For example, Cornelius NC just a few minutes north of Charlotte Year-to-date average sales price is up by +11.1% ($785,531) because we are selling million-dollar homes more than the average home, around 450K. In a normal market 80% of sold SFH in Cornelius would be your average 2000 SQFT 4/3 SFH, around 450K, and 20% would be million-dollar homes and right now we have the opposite situation. The real median home price in Cornelius is closer to 450K, not the 785K in the statistics. My last listing in that price range was a few months on the market because to finance a 450K home you're all in monthly payment would be around $4600/monthly and the home next door rents out for around $2000/monthly. New homebuilders are getting a boost from low existing homes inventory in Charlotte and subsidizing the interest rates. Net sales orders of new homes increased by around 35% from the prior year's quarter.

Trust your gut instincts with posting it on BP; you already know there are too many red flags. An OBGYN quickly gets a million-dollar mortgage, and homes in this category are the best deals in the CLT metro area; you can buy homes $800K+, sometimes 20% below tax value in Mecklenburg County in 07/2023.

At 7+%/20% down for investors, BRRRR is dead in the Charlotte metropolitan area. We still have too many rental SFH on the market due to the cash buyer boom from 2021. My turnover rates are up by at least one month. This is the best time to get started and buy your primary residence and take advantage of the market situation days on the market until sale is up by +142% in May 2023 List to close is down 5.2% to just 96.5%. I have seen deals up to 20% below asking. This is the first time in 6 years you can buy Homes in Mecklenburg County under tax value. Get a loan with 3.5% down and let the seller pay a 2-1 buydown (Seller-Paid Rate Buydown) and refinance later when interest rates go down.

Average sales prices ticked up by +4.6% again in Charlotte. This brings us to the main problem in the housing market the affordability of starter homes and median-priced homes. The Housing affordability index for May 2023 is 85, just two years ago, the affordability was 143 ( A higher number means greater affordability)

Most homes under 200K with small repair needs still get multiple offers; there are a lot of investors competing with outpriced first-time home buyers. Homes 400K to 500K don't sell anymore fast because it's often 50% cheaper to rent the same house. We still have too many rental SFH on the market due to the cash buyer boom from 2021. Upscale homes 750K+ in good neighborhoods still go under contract in a few days because financing isn't an issue for buyers 1M+.

In the Charlotte region, new listings have decreased by 25.4% to 4,568, and pending sales have decreased by 13.1% to 4,329. On the other hand, inventory has grown by 6.7% to 4,667 properties. The months' supply of homes for sale has increased by 44.4% to 1.3 months, suggesting a rise in supply relative to demand.

While fluctuating interest rates have discouraged some buyers, the shortage of inventory is also a contributing factor to lower-than-average home sales. Current homeowners, who secured mortgage rates significantly lower than the present rates, are delaying their decision to sell until market conditions improve. As we enter May, there is only a 2.9 months' supply of available homes, resulting in a fast-paced market. The typical home spends slightly over three weeks on the market before being sold.

@Patrick Forelli, Congratulations on your initial post on BP! It's truly remarkable to see someone as young as 24 achieving such incredible success. Investing in real estate can also provide the added benefit of lowering your taxes. Just as Zillow's algorithm didn't guarantee success in purchasing a home, calculating your success in real estate investment using tools like Airdna will not end well. When it comes to short-term rentals (STR), it's not just about the numbers on your first few properties. To truly succeed and maintain positive ratings, hands-on involvement is crucial. Building strong relationships with guests and choosing a strategic location are key factors. Consider purchasing a property near your own location so you can manage it yourself, and if things go well, establish a local team.

Sadly less than 4% of all BP members who have reached out to me in the past few years over the BiggerPockets featured agent program have overcome analysis paralysis and compared their deals to the extraordinary cash-flowing examples shared here in the forums.

@Bhanu Puvvala , You're at the right place. Charlotte is one of the hottest markets in the nation for new construction. With that stayed, you picked the thoughts way to get started; new construction only works with years of experience and the best connections. Easier is, to begin with, flips. Your first few deals are more like a learning curve than a home run; take your experience and the team you build in the first deal and do the second, and so on. 

In Germany, we have a saying: Lehrjahre sind keine Herrenjahre. We've all got to start small.

@James Are some Handyman charges are outrageous. New doorknob at home depot $27 + 20-minute installation & Plastic Wood-X with DryDex 5.5 oz. All-Purpose Wood Filler 6.98 1 hour prep & sanding next day door painting $150.

All my rental properties have an Animal Addendum that regulates those cases. PM me, and I send you my form. I prefer only small dogs in my rentals with a one-time pet fee.

@Trevor Soderholm A pound is a liability, not an asset, and you limit the number of potential buyers like helicopter moms. Improvement Projects that pay off when you sell are new floors, new LED lights, replacing old door hardware, and kitchen and bath remodeling. 

@Ross Alcorn, I rented out my primary residence for over five years, hired an interior designer for professional decoration, and changed furniture to make it more attractive for STR. Removed all personal pictures or decorations. I had a huge walking closet that I rebuilt into an "Owners-Closet" with a hidden door and built a smaller wardrobe for the primary bedroom for my guests. All my personal belongings were always in my secret room, and when I got a booking request on short notice, I didn't have to pack anything and move to my girlfriend or do a vacation.

The key is to have a great team when you're gone (a friend/or coworker) in town who also does professional STR and a cleaning crew that specializes in STR. Today I miss my former cleaning crew; my old home always looked like a 5 Star hotel.