All Forum Posts by: Kyle Parks

Does anyone have a management agreement for Short Term Rentals between the owner and the manager? I am hoping to get something that I can take to my attorney to make sure it is NC compliant.

@Bruce Woodruff I am licensed in WA and NC and the contracts are different in every state. Some states are very clear that the buyer can have access for specific essential inspection purposes (measuring for furniture not being essential) and others are wide open and allow the buyer access for anything with proper notice to the seller.

There is also the quality of agent and seller. Some agents are very accommodating and want to help their client and give them the best service whereas other agents are just burning and turning clients and are more focused on themselves than the needs of their clients. Some sellers are so averse to letting people in their house that you tend to wonder if they actually want to sell their house in the first place.

My philosophy is to give the best service possible because my goal is to make clients for life and build a solid referral relationship with my clients. I also realize that our business is one of reputation so being diplomatic and asking nicely and respectfully goes a long way when I am trying to do things for my clients that might be considered an inconvenience to sellers or other agents.

Communication is also a huge part of a good agent’s tool belt. If my client asks to get access to measure and no matter how nicely I ask I encounter an uncooperative agent or seller I will explain the situation to my client other than just saying no.

If you feel that it is your son’s agent that is lacking you could always have your son contact his agent’s managing broker who can usually make things happen or at least tell the agent to be a better commmunicator.

@Stephen Bennett Yes, but like @Ian Walsh said, make the offer that works for you. If you run everything and offer a certain price and the seller doesn't accept, after reasonable negotiations, then move on. I don't think of offers as low ball. They are what works for your business and if that doesn't work for the seller then it isn't a good match. And if that is the case just let them know to keep you in mind if anything changes. Who knows they might come back to you a month from now and want to work with you. It is a very tight market out there but there are deals for those willing to find them.

Looking over your numbers I see that you have 12% interest only on the hard money purchase loan and rehab. Your purchase price loan (at $99,000 list and $20,200 for rehab cost) would be $119,200. Take out 10% for down payment and that would be $107,280. So 12% interest only would be 1%/mo which would come out to $1,072 in holding costs per month. 

Also, you mention 2pts on the loan which would be $2,144 at sale closing. You have 9% for sale closing costs. Take 6% off for realtor commissions you have 3% which would be $4,650 at a sale price of $155,000. Take away the point payoff and you are left with $2,506 which is just over 1.6% of sale price. 

In your rehab budget are you paying yourself? You want to consider retail price for rehab costs because of you get hurt the day after closing and need to hire someone to do the work you will be at a loss if you didn’t calculate rehab at retail price. 

@German Hall

How far away are you looking to purchase? I am in the Hendersonville/Asheville area and we definitely have high demand here. I am a real estate agent so if you send me a message with more details I can help you find something in this area or refer you to an awesome agent in the area that you are looking if I don’t service it.

@NA Turner - I always request the sellers initials on the offer to be sure that they saw it. I hold the other agent’s feet to the fire on this. It they don’t deliver you can upset the contract and force the seller to sell to you (I haven’t done this forced sale but have heard of it happening).

Any agent that works with investors deserves their full commission. I have worked with many investors and a lot of investors will suck an agent’s time. I go above and beyond for my loyal clients and those that value my time and expertise. They know I will fight for them to get the best deal possible and make sure that they are treated fairly.

Hey Everyone,

Most of us have read Rich Dad Poor Dad but have you read any of the other books in the series? My mind was blown when I read Rich Dad Poor Dad so I picked up Robert Kiyosaki's second book Cash Flow Quadrant and devoured that. Then I moved on to the Rich Dad Advisor Books by Ken McElroy, Garrett Sutton, and Tom Wheelwright among others. It was a couple years later that I read Rich Dad's Guide to Investing which was the third book in the original Rich Dad Series. But my favorite book is The Real Book of Real Estate. Kiyosaki brings in a ton of his advisors and they talk about pretty much all aspects of real estate. It is awesome and chock full of great info. 

Investment Info:

Single-family residence fix & flip investment in Port Ludlow.

Purchase price: $167,000
Cash invested: $130,000
Sale price: $367,000

This was an off market deal. The property was pretty rough when we picked it up. We had a great contractor that delivered a fantastic product. We had a ton of interest when we came on the market and got a full price offer right away. Unfortunately the buyer got cold feet and backed out for no reason and then we had a lull in the market. When the weather got nice we got a good buyer and closed without a hitch.

What made you interested in investing in this type of deal?

The opportunity came up and the numbers worked.

How did you find this deal and how did you negotiate it?

A wholesaler brought it to our attention. We ran the numbers and agreed on a price.

How did you finance this deal?

Hard money

What was the outcome?

We sold it and made a good profit.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes. Myself. I managed the contractor and listed the property.

Awesome!! Gil is a great agent. I am glad you were able to get hooked up with us. Caliber is by far the best. Not just because I work there. I work there because they are the best and they actually care about your success and helping you achieve it. See you around!!

Hi @Rob Terpilowski,

Welcome to BP!! I am an agent at Caliber Real Estate. We have some awesome tools to help investors like yourself. I highly recommend going to one of our Thursday meetings to check out what we do at the foreclosure auction. Good luck in your pursuits!