All Forum Posts by: Marc Winter

As a broker in NYC for many years, I've been in the trenches and also trained many successful (and some wash-out) agents.  One thing I've learned is, you can't tell who will succeed or fail in this business by looking at them or listening to what they say they will do.  It's what they actually DO that counts.

What it often boils down to is this question:  how much rejection and failure are you willing to accept before you go home?

That is not a negative statement or a put-down of the industry; it is a fact of life.  Real estate is a numbers game.  If you have the attitude that the more you fail the closer you are to success, you have a good chance at the success you seek.

Once you have the right attitude in place there are only a few things you must do every day:  practice, drill and rehearse your listing presentation and closing sequences (thank you Tom Hopkins).  Prospect every day, and inspect, inspect and inspect some more.

When you know your area and the market, you become an expert of product knowledge, and can speak with some authority in answering questions and objections of buyers and sellers.  Know what questions to ask.  Lead them, don't push them. 

Of course visuals, cma's or power point presentations are important, but remember, people buy emotionally, and then justify those decisions with logic, so know what you're talking about, and let them FEEL what you know.

Never look at a customer or client as a commission or car payment.  Put their best interests above your own and they will trust you.  Never intentionally violate that trust.

Be prepared for six to nine months of no income.  Have savings put aside to cover you.  Sure, you could hit something right away, but chances are, even with a quick hit, deals fall out, delays happen--expect the unexpected.

Lastly, stay off the emotional roller coaster.  You get a listing in the morning and you're riding high; a deal falls out in the afternoon and you're depressed.  It's up/down, up/down.  Don't let yourself get caught up in that.  Know your numbers, and keep going.

The person that won't quit can't be beaten.  If you have passion, drive and commitment (not just involvement) you will succeed.  Remember, in a breakfast of bacon and eggs, the chicken is involved; the pig is committed.

All the best!

Interesting case--we've seen a few like this.  A tenant says "xyz" (sewer gas, mold, peeling paint, etc.) is making the property uninhabitable and a health or safety issue, so they are not paying rent, or pay whatever they feel like.

Question we always ask in court:  "If you feel the property is uninhabitable, why are you still occupying it?"  

Be prepared to get notarized statements from the contractors that were there, or have your attorney subpoena them to appear in court to testify about the tenant's threatening behavior. 

As for your "property manager", In most states, a property manager must be a licensed re broker, or an agent working under a broker.  Exception is managing your own property, or hired by, for example, a developer to show only their units.

If they are not licensed, you could tell them you will report them to the Department of State (or whatever agency licenses Real Estate agents/brokers in your state) if they don't give you a full accounting of funds and all the paperwork involved--lease, records, etc.

Your attorney could also subpoena them to appear in court during the eviction hearing if they don't turn over the documents and accounting.  Not performing what a subpoena states could land them in jail for contempt of court.

Disclosure:  I'm not an attorney, not giving legal advice.  Just letting you know what we've been up against in our own personal experience.

Good luck!

Check out NEPA--Scranton/Wilkes-Barre areas.  Still can find sfr for $45k renting for $900/mo.  2--4 fam buildings @ $25--30K per unit, renting for $600 per unit.  These are NOT A/B areas, but if you are looking long-term cash flow, this is a great place to go.

If you are thinking of doing a lease/option with your neighbor (who is a good guy) I'd think twice.  Why turn him into a tenant? 

Sell that property, and buy or house hack or do a lease w option for yourself in your current area. Learn what you can her in BP and in your local REIA or other RE meetup, and put that knowledge use in finding a great deal.

Good luck!

We manage 300+ units, and we require ALL tenants to have (and maintain) renter's insurance before we give them the keys--binder faxed from their insurer is proof. 

The owner and we as managers are indemnified, and we receive notice from insurance carrier if tenant is ready to lapse.

During the last 20 years we were named in a suit 2 times.  Both frivolous, but did require attorney, which insurance covered.  Both amounted to what I refer to as 'legal blackmail' where the attorneys settle out of court because it is less costly for the insurer than continuing to trial.  We had a $50K suit turn into a $2k settlement--after 4 years!

Insurance is a net positive for the tenants, in case of theft, accident, fire or flood damaging their personal property, etc.  More tenants/renters have break-ins statistically than homeowners.

Ummm...

Have you considered that just MAYBE he won't be roasting coffee at all, but perhaps doing some "gardening/growing"? 

Just say NO! (for any/all of the reasons already stated above by experienced pros.)

And make sure to inspect this unit at least monthly for the first 3 or 4 months. 

On the bright side, I do give the guy some credit--at least he asked you about it.  Usually they take the attitude it's easier to ask forgiveness than permission.

Good luck!

I believe @Mindy Jensen is correct.  To accept a commission/fee you need to be a real estate broker or licensed re agent working under a broker.  Exception:  you are an employee of the owner (typically builder/developer) and showing only their properties.

That being said, I know of lots of people that are doing just what you propose, and are doing so knowingly or unknowingly breaking the DORE laws, at lest for NY and PA.  I have seen the properties these 'managers' handle, and often they are NOT being taken care of properly.  (Not to say you wouldn't, but this is my personal experience.)

On to lease/sub-lease--If you want to do that, you are a TENANT and responsible for everything your sub-tenant does.  Pays rent or not, YOU are responsible.  If they do damage to the property, it's on you.  If there is a big enough spread between your lease payment and what the sub pays you, maybe it's a deal.  I certainly wouldn't do it in my own name--use an entity.

You'll have to ask yourself if it's worth it.

Whoa!  With a friendly city like yours, who needs enemies?  Sounds like good grounds for a class action.  Any attorney out there want to handle?

Back to point--we normally keep the unit open about 10 days--2 weeks.  Lots of our leases start on OTHER than the first of the month.  However all leases have rent due on the first for our bookkeeping convenience. 

Tenant's pay first full month, REGARDLESS of when they move in, and the SECOND month is pro-rated.  We divide the rent by 30 days, put that number in the lease and explain how proration works to make sure all are clear on what is and what is expected.

Think about it... if all landlords worked that way, there might be less than a month's lost rent, less pressure, and more convenience for rent-ready work and tenant move in, rather than being so constrained by "THE FIRST!" 

Just sayin.

All above are GOOD ideas! 

Tell ya what I've been doing for years:  I have my business card with office name, license info (I am a broker) and office phone.  After speaking with a seller, when THEY ask for my card, as I'm handing them my card, I say, "hang on a second." I take back the card, turn it over, write my cell number, and "I'll buy, all cash, quick closing."

Then I'll hand it to them saying, "I don't give out my personal cell number to just anyone, only to people I think are serious. I think you are, am I right?"  Smile, nod, be silent and wait.

They might not sell, but they don't often forget.

Best.

@Kyle J. the way I see it is they owe you the money.  You 'earned' it, but didn't receive it.  A bank can issue a similar 1099 (forgiveness of debt) on unpaid mortgage after foreclosure.  They write it off, even though they didn't receive the money. 

Other than that, I just like the idea that they might just have to answer to a higher authority (IRS).