All Forum Posts by: Lisa Thoele

Just a thought...one option is just to ask your sheetrocker the cost difference and their opinion about whether the sheetrock is repairable?  If you don't have a sheetrocker you trust ask three different ones and you'll probably have your answer!

I agree with  @Cody Campbell its really what you put into it.  Commissions are based on sale prices so its hard to say how much you would make.  In our area a single side of a commission is typically between 2.25-3% of the sales price (covering my antitrust bottom lets be clear that there is no set commission this is just the range I see here typically).  So if your average sale is $300,000 @ an average of 2.5% your average commission would be $7,500 - out of that you need to pay taxes and your desk fee.  So figure out what you need to live off of, how many houses a month you need to close and if you have a big enough database or enough hustle to make that happen.  Give yourself some start up capital and six months of runway and go for it.  

You might check out how prevalent real estate teams are in your area.  In my area there are lots of teams - they typically are a successful agent who has agents with specific roles "working" for them - so for instance they supply the leads and you would work as a buyer's agent - working with buyers who they find through their reputation and lead generation efforts.  You in turn would pay them a significant portion of your commission and they often have some requirements of your participation in lead generation but its a way to get started with support and some leads provided to you.  Not sure how things work there but whoever is in change of a brokerage you are considering joining could direct you to successful teams.  

Another great way to get your foot into real estate is to get hired by a big builder.  Often times, in my area, they pay a salary (not super good but stable) and a very small commission - its definitely a job they tell you when to show up and when you can leave - however this is a great way to get integrated into a brand new community.  If you become the go to person for neighborhood information for new homeowners you could build yourself a really nice farm and go out on your own and leave the builder when the neighborhood starts to turn.  We have big subdivisions here that are all built by one builder - not sure about your market.  Just hook your wagon to a good builder or you'll be the scapegoat for all the complaints that are sure to follow.

Just some ideas.  Its a little tricky to go all commission if you need to generate income immediately.  Best of luck!   

I think it depends on the level of property - in my market it would sell much better if it was all a unified look.  I think it depends on your end price expectation.  I don't really leave anything that is smelly in my flips. Sheetrock wall demo is easy-peasey and if you have a good sheetrocker in terms of scale of economies its not going to be that much more to have the bad stuff replaced versus fixed.  

Hello Kevin!  I don't currently purchase in Portland but know the area a little.  Just my thoughts, you might not be missing anything.  I'm sure that there are more qualified people who can speak to the numbers for your rental income projections. The listing history is a little wonky but it looks like it just came back on the market in the last few days from a long time listed as short sale pending? She might already have offers?  That being said I think it could be challenging for them to find the right buyer - someone patient for a short sale and a buyer who wants to bring $72,000 in cash for liens and short sale negotiators before their downpayment?  Kind of a tall order.  But Portland is so hot so who knows!  I would try texting the listing agent - she's had this property listed on and off since 2008 and has been dealing with the short sale (what a pain for an agent) - she's probably sick of it, not making any money on it and has probably been fielding a million calls from completely unqualified first time buyers who want that area but don't really pay attention to the details and don't have any cash - I would be clear in your communication with her that you understand the requirements and have the cash to close - I've had transactions with her in the past she's been around for a long time.  As to your question regarding why a lender would do this on one property, perhaps the sellers have different lenders on each property and not a lot of equity in any of them?   Sounds like they are trying to liquidate some and this one might be the property that they have used as their scapegoat?  Good luck with it!

Kyle - I would love to attend but I do a laundry outreach on Newberg the second Wednesday of every month - please keep me in the loop for future events!! I might send my husband in my place!

Hello Tracey!  I think that this is an area that the real estate agency in Oregon really needs to clear up.  From my understanding, as long as you are properly licensed as a general contractor and have your insurance bond and disclose everything to a buyer you are fine to be a licensed agent.  I think the bigger issue that the state has is with agents doing work on properties who don't have contractor licenses as there is no protection for the consumer - no bond to fall back on - if there are issues.  I've been to investor meetings with an attorney present specifically to address this topic who can't really answer the question on whether or not an agent who is flipping needs a contractor's license.  If you are really concerned you can call the real estate agency and talk to them before you move forward but from my understanding you will be covered if you have a contractor's license - its those of us without the contractor's license that fall into a gray area.  You will want to find a brokerage that is investor friendly and will work with you on your cap.  Best of luck!!!  

@Jake Wenbourne  My advice would be to meet with a local attorney who is familiar with real estate investing.  You will need an earnest money agreement which is a sales contract.  Your attorney can advise you on this but you will want to make sure it is assignable.  Then you will want a simple form of assignment.  So you write up a sales contract between you and the seller.  Then you use the assignment form to assign your rights in the contract to the end buyer, who you find.  That is the paperwork trail.  Of course there is more to it but that might get you started.  I have an attorney in the Portland area I'm happy to recommend but I'm guessing you can find someone near you.  They should be able to walk you thru the process and provide you with forms.  It will be money well spent if you find a good attorney.  Maybe ask your real estate agent and/or title company for recommendations.  Best Wishes.  Lisa

I'm in - thank you for arranging this @Adam Smith

I would double-check with your title company and the HOA if one exists - I bought one with a business partner and had to use her as the primary for the HOA purposes because she was over 55. Best Wishes, Lisa

@Ben D. Oh prices are back up - I meant the crazy price increases!  We aren't seeing prices rise as quickly as they were before the crash.