All Forum Posts by: Matt Shields

In the 1930's BofA nearly went bankrupt because they failed to see the US downturn coming. The only thing that saved them was being well connected politically. 

In the 1980's BofA nearly went bankrupt because they failed to see the Mexican/South American downturn coming. The only thing that saved them was being well connected politically. 

During 2008-09 BofA nearly went bankrupt because they failed to see the financial crisis coming. The only thing that saved them was being well connected politically. 

See a pattern? So this time BofA has it figured out? I'm not saying the market won't go down, but the same pundits who have been so wrong in the past are now looking into their crystal balls again. Many have been claiming a downturn is coming soon for nearly a decade, and one day they will be right. I learned in 2007 not to speculate just on appreciation, and just assume the market may crash tomorrow. 

I just wonder if the next crash could be short-lived? There are many of us investors who watched people get very rich buying homes during the last crash, will we all jump in and push the market up? Thoughts? 

I'm a broker, not an economist, seek professional advice.

When you say "career in real estate" that's pretty vague. Do you mean working as an agent, investor, or something else? If you want to start as an agent, you will probably make little or even lose money your first year, so you will need some money put away or a spouse to support you. 

If you want to be an investor, despite the no money down stories, you will need capital/credit or someones else's to get started. If you go your parent's route and you get a good W2 job, obtaining loans will be much easier. 

ASU offers a minor in real estate that will apply to your college credits and satisfy the 90 hours needed for a real estate license.

https://research.wpcarey.asu.edu/real-estate/adre-licensing-ug-minor/

Are you charging for the blood and vomit stains? :)

I have used cash for keys with occupants in homes that I purchase out of trustee sales. It gets them out fast, they don't destroy the place, and they take all of their junk. 

Why would need to do cash for keys in a rental? I require good credit, employment, and deposits. If they stop paying rent, then I evict them and charge for the damages. If the damages exceed the deposit then I send them a bill with the choice to pay it or go to court. I remind them that a judgment will trash their credit, and I will garnish their wages. I just recently went through this, and they set up payments to cover the damages and avoid a lawsuit.

As always, seek professional advice. 

1. I was just talking with an HVAC tech who was repairing an AC at my rental. I told him about how high my electric bills were at my warehouse where I use a portable AC for the office. He said window and portable AC's are the most inefficient systems for cooling. 

2. Separate metering can be expensive, but there are more economical sub-metering companies. 

3. I think 5 years is way too short for a solar return. Solar payments/leases can also be a deterrent to buyers.

4. Which government program? Section 8? Be careful of the numbers they promise. 

As always, seek professional advice.

 I don't see why you couldn't do that, but I'm not 100% sure.  The problem I would have as the buyer's agent is that if I didn't write the offers there is too much liability unless their attorney was creating the offers. An unlicensed buyer can't use AAR forms (for my state) and who knows what would be in the one they came up with. Although, maybe you could just send a letter of intent.

Or you could forgo the selling agent and just send a letter of intent to the listing agent where the buyer and seller agree to dual agency (illegal in some states). 

Or you could forgo both agents if you agree for the buyer's agent to represent the seller but not you.

Seek professional advice, I'm not 100% certain, and state laws can vary on this.

There seems to be a misunderstanding from many here about "present all offers". A listing agent must present all offers received to a seller (your state may be different), but this does not require a selling agent to represent a buyer unless there is a Buyer/Broker Agreement stating otherwise.

Just as a client can fire their agent, an agent can also fire their client. I have fired many clients when they ask me to do illegal, or unethical things. Sometimes I have seminar investors who want me to write hundreds of ultra low-ball offers. They are generally a waste of a lot of my time, effort, and reputation, but the investor has nothing to lose because they don't have any skin in the game and only an LLC name on the contract. I tell them I'm not the agent for them. Usually, investors need to find a gullible and inexperienced agent fresh out of school to do this.

I have also fired clients because we just have personalities that just don't get along, and some that were downright crazy. At one time I had several crazy clients making my life miserable. My broker called me into his office one day and said: "The key to a happiness is to remove the crazy from your life, they are not worth the trouble". I took his advice and he was right.

If your investing style is in conflict with your agent, I would suggest that you find a new agent who will work with you. Just be upfront with agents about your acquisition strategy so you don't waste your or the agents time. One word of advice, I'm not opposed to lowball offers in the right circumstances and I'm getting ready to write one now, but be careful because sellers are emotional and if you insult them they may refuse to even look at any followup offers. Good luck.

 Visitors are not occupants. This should be clear in your lease.

Did you give the police the name and number of the person who told you how the window was shot out? Is this a really high crime area where the police just collect the bodies?

Many states have laws that allow immediate evections if the tenant is causing excessive damage.

I think an hour of time with a real estate attorney would be money well spent.

I put in my lease that the landlord will change the HVAC filters and test smoke/CO2 detectors every 90 days. This way I get to see inside just about every room, and I also make sure the HVAC is properly maintained. 

I spend a lot of time researching properties for clients on the computer/mobile. When I get an alert for a topic I click over to read it, and if I think I can add something helpful I'll put in my two cents. It's self-serving, like any business if you don't promote it you will be out of business, but I also see so much bad information on the internet that it's hard not to participate. I cringe when I read some internet posts.