All Forum Posts by: Kelly Asmus

Get a job with a builder, learn how construction works from the ground up, save up some money and invest in a house hack or a multifamily property where you can get owner occupied financing, move in, get rental income that pays most or all of the rent and make updates to the property. In 2 years, you can either refinance it and cash some money out to buy another one, or sell and buy another one, rinse and repeat. Or refi it, if it pencils, and hold it, buy another. Start building your rental empire. 

Network, network, network. Talk to your friends, real estate brokers and other contractors. My new construction clients drive around to other new construction sites and take photos of the contractor vans they see at other sites. Then vet everyone. 

The rental market is VERY strong. I posted a SF for rent early May and got no less that 40 interested applicants for one 2000 sq ft house at market rent. Cover your bases, make sure the rent is to market and that legally you are protected. 

I will be interested to see if this data is turned on its head due to Covid and the rise of remote work. So much has happened in the last 2 years and has really changed people's perspectives about where to live. 2020 seems so long ago and so much has happened in our world. Clearly people are gravitating toward certain areas more than others and that got an extra shot in the arm the past 2 years. 

@Sam Wilson I have to agree with the others. You're leveraging a lot for little return. I'm local to the market and I have lots of clients doing the same thing. There are a lot of properties you can house hack and or that have existing ADUs. Slow it down and find the right project that pencils for you. Quite a few duplexes on the market as well, which would be instant cash flow. Wait for the right project that makes sense. Reach out if I can help.

There is opportunity everywhere, even in the Bay Area. Move somewhere you will love to live and has the amenities you desire, then find opportunities that pencil for you. If you don't love where you live, then why be there?

Alexandra - I registered but didn't receive a confirmation email? 

Do the work. Put in the hours. 

Tell everyone you know you're in real estate.  Your first year, most all of your deals will come from your immediate sphere. 

Follow-up. Follow-up. Follow-up.

Overcommunicate. Especially on the details. 

Understand your real estate contract inside and out. 

Protect your client. 

Off market deals are still possible. Having your realtor bring them to you is only one way. Networking, auctions, social media, letters and door knocking are all ways to find properties. You have to put in the effort to find the deals.

Our team has a pipeline of sellers that we try and match with our current buyers. So yes, many agents, if they have a lot of experience in the business, will have access to properties that haven't hit the market yet. 

The discussion about appraisal gap is important and I include it whenever I can with a buyer that has the ability. There are also some other things you can do as an agent to get an offer accepted and still protect your client. I am not a believer in waiving inspection contingencies unless it's a flipper/rehabber client and they thoroughly understand what they are getting in to and the price reflects the risk. For buyers who are strictly buying their first house hack or rental property and aren't considering a major rehab - the inspection can make or break your deal. I add language to the contract -"buyer waives all cosmetic repairs. Only code violations, lender required repairs or safety issues will be called on a repair request." This helps a buyer twofold- it retains your right to an inspection and your ability to terminate. It also tells you if a property might be a potential problem. If a seller won't agree to that clause, then there might be something big and expensive lurking that won't help your project pencil. 

I also try and get as much information from the seller's agent as possible. Do they need a rent back? Is there something specific they are looking for in the offers. Gathering as much info as you can to craft an offer that stands out.

The last, but not least important way, is sharing within my team and office. We meet weekly to discuss potential properties in our pipeline and try and match potential listings with our current buyers as much as possible. A win win for everyone. A seller may not need to do a big remodel since I may have a client who fits that property perfectly and we work out a price that is fair for the future repairs. We sell something before it even hits the market and the seller gets everything important to them and buyer secures a deal in an inventory scarce market.