All Forum Posts by: Matthew Irish-Jones

Looking for five Project Management companies that handle first-time investors and smaller portfolios in the Buffalo, Rochester, and Syracuse area of New York.  Obviously, want reputable companies that are happy to be vetted. 

Quote from @Matthew Irish-Jones:

Quote from @Daniel Vroman Rusteen:

I started interacting with a RE agent months ago when I began looking for an Airbnb investment. The agent has been communicative the whole time (something that I can say about 5% of agents in my limited experience) so I'm a fan!

But as I've read more about the process, including a BP published book by Brian Green 'Long Distance Investing', I'm wondering if not only is a RE agent not needed for me, but is likely to work against my favor.

Why? 

First, in terms of negotiating, I have experience buying a home outside the USA and I noticed the RE agent, who I assume was a negotiating expert, didn't negotiate very well. I lost that deal, and ended up buying another home directly from the listing agent. Negotiating is about what words you use, when you say it, etc. Back to today: I got off the phone with my agent, where I communicated how I wanted to present my offer (in summary: if the seller rejects my original offer, I hope they'll make a counteroffer, but if I decline that counteroffer, I will move on to make an offer on the next property of the few I am interested in the market - this is to avoid a back-and-forth and the property had been listed for a year with a 25% price cut in that time). At the end of the conversation with my RE agent, I asked them to repeat back to me how they'll present my offer, and nothing. So then I repeated and the agent still missed some points of how I wanted the offer presented.

Second, coming from the BP book, I am coming in with an offer well below asking as an investor. If I deal with the listing agent directly, they'll get 2x the commission, so even if my offer is below asking, they'll be on my side to get it accepted. Or is that not how it works in reality?

Regarding security with buying the property, I can't say I'm too worried about that. I'll still have a lawyer review everything plus the title company. Or, is this not a good idea?

I feel bad telling my RE agent that I will negotiate directly with the listing agent now after all she's communicated with the listing agent already. Is this a very bad idea? Would the listing agent not want to do business with me because I've done this? Obviously, my agent will not be happy, is there something I can do for her to make her whole?

PS The reason I went this far with my current agent is that I am investing out of state and my rationale was having an extra person out there who could possibly help me. I don't know if the agent would help me, or would be done with me after the close. I'll also have a cleaner, handyman, and anyone else I can form these relationships with while I'm out there.

Thanks in advance with any help and reading this lost post!

 LOL brother.  You asked your agent to repeat back to you?  Sounds like neither you or your agent really know what they are doing. 

A good agent knows the market and provides analysis with rental comps, sales comps, projected maintenance expenses, projected CapEx... The data should be transparent so you can verify what supporting data was pulled.

If you worked with our brokerage.  I would be telling you how many registered offers there were, and what percentile your offer falls into with chances of winning.  If its a competitive situation and you wanted to submit an offer with a sub 20% chance of winning I would submit a verbal offer, I would not waste my time writing up a contract. 

A good investing agent is going to present hard data to work off of.  There are no secret negotiating tricks, low ball offers with love letters, or highly intelligent investors from afar that can win bids due to awesome use of language.  Sellers are sophisticated enough to pick the best offer, they only see the price and the terms, any other negotiating tactics are a waste of time.  

Your agent is very responsive because you may be their only client.  I whole heartedly disagree with everything you said about negotiating.  It has nothing to do with words, or when you say them. 

Thanks for the insight! One point of clarification, I didn't have her repeat it back to me like a child. I wanted to ensure that she understood what I was trying to communicate. Words a crude device for what goes on in our heads, but they're all we've got!

Very interesting about the negotiating. I would venture to guess many RE agents would disagree with you on that. At least, I disagree. I assume(d) they think they are good negotiators, or is your thinking common in the industry that negotiating is null and void, what matters is only the money. In that case, you can text over or email an offer? Makes no difference.

@Daniel Vroman Rusteen

In multifamily, it is customary to go directly to the listing agent. Most big commercial brokerages do not share commissions, so if a deal is sent to you by an agent who is not the listing agent, you may have to comp them.

That being said, your goal is to network and meet every broker in the market, so when a deal hits their desk, you are one of the first they call.

Tell your real estate agent to bring you off market deals, or any deals that they list. Other wise, they are not providing you with any value.

I started interacting with a RE agent months ago when I began looking for an Airbnb investment. The agent has been communicative the whole time (something that I can say about 5% of agents in my limited experience) so I'm a fan!

But as I've read more about the process, including a BP published book by Brian Green 'Long Distance Investing', I'm wondering if not only is a RE agent not needed for me, but is likely to work against my favor.

Why? 

First, in terms of negotiating, I have experience buying a home outside the USA and I noticed the RE agent, who I assume was a negotiating expert, didn't negotiate very well. I lost that deal, and ended up buying another home directly from the listing agent. Negotiating is about what words you use, when you say it, etc. Back to today: I got off the phone with my agent, where I communicated how I wanted to present my offer (in summary: if the seller rejects my original offer, I hope they'll make a counteroffer, but if I decline that counteroffer, I will move on to make an offer on the next property of the few I am interested in the market - this is to avoid a back-and-forth and the property had been listed for a year with a 25% price cut in that time). At the end of the conversation with my RE agent, I asked them to repeat back to me how they'll present my offer, and nothing. So then I repeated and the agent still missed some points of how I wanted the offer presented.

Second, coming from the BP book, I am coming in with an offer well below asking as an investor. If I deal with the listing agent directly, they'll get 2x the commission, so even if my offer is below asking, they'll be on my side to get it accepted. Or is that not how it works in reality?

Regarding security with buying the property, I can't say I'm too worried about that. I'll still have a lawyer review everything plus the title company. Or, is this not a good idea?

I feel bad telling my RE agent that I will negotiate directly with the listing agent now after all she's communicated with the listing agent already. Is this a very bad idea? Would the listing agent not want to do business with me because I've done this? Obviously, my agent will not be happy, is there something I can do for her to make her whole?

PS The reason I went this far with my current agent is that I am investing out of state and my rationale was having an extra person out there who could possibly help me. I don't know if the agent would help me, or would be done with me after the close. I'll also have a cleaner, handyman, and anyone else I can form these relationships with while I'm out there.

Thanks in advance with any help and reading this lost post!

Quote from @Matthew Irish-Jones:

That is not what most people want to hear. 

I think it's getting worse, too. I understand how get-rich-quick types gravitate to real estate. But nowadays, it often seems that's all there is in the way of new blood in the field. Well, maybe that's not fair. These people are not looking to buy a Lambo next year. But for many of them, the mantra always goes: "Let me get rich (but we won't call it that) and let me quit my job (as soon as possible) so I can be happy."

When you tell these people that it often takes more than a decade before the investing makes things like that possible, they go looking elsewhere for advice, until they find someone who's willing to sell them what they want to hear.

Building relationships, improving your lifestyle, relieving chronic anxiety, creating strong friendships, building bonds with family, work-life balance, delayed gratification, risk-reward management, lifelong financial freedom, all the really good things about REI are often suffocated under the overwhelming need to GENERATE INCOME TO QUIT MY HATEFUL JOB.

What's the best thing about investing for me? My wife and I have not had anything close to an argument about money for the last twelve years. That always meant a lot more to us than quitting our jobs, even though we both eventually managed to.

Hello, long-time reader of BP, first-time poster!

I’m putting together a deal to buy a multi-family rental property from my parents in Buffalo, NY. I’m exploring seller financing and looking for recommendations for (1) a real-estate attorney, (2) CPA.

Thanks!

Hey Everyone!

My name is Chris, I'm just getting started on real estate investing... like from square 1 sort of starting out. Starting to wrangle as much cash as I can to do my first small deal and get some positive cash flow to exit the rat race! My wife and I own a fitness studio just outside of Toronto, ON. We're currently working in the business quite a bit right now, but as it grows we'll be hiring to have it fully staffed with passive income to cover our current expense plus more. 

My initial question, does anyone know what's involved to invest in a US market as Canadians? We'd be looking to start small as mentioned with a 2/1 or 3/2 rental but not sure if it's worth looking in the states just yet or with future deals.

Thanks BP team!

Chris

Quote from @Matthew Irish-Jones:

Quote from @Nicholas Bacon:

Hi All, 

Been a member since 2020, but not very active. I finally have my first deal done and generating income. I am trying to review the process and see what lessons learned can be gleaned from the whole experience. 

I am mostly interested in learning about how to keep track of income and expenses, when to take depreciation, and other tax focused things.

Best,

Nick

 Hi Nick, 

Are you self managing?  If you are using a PM they will take care of all of this for you.  If you are not using a PM all you need to do is track income and expenses.  Your accountant will handle depreciation for you.  Every item from a roof to a dryer has a depreciation schedule that is fairly standard.

One income property is really easy to track if you associate it with one bank account.  All rents coming in is income, all costs are expenses.  Balancing your account and doing taxes should be a breeze if you keep it organized up front.

 Hi Matt, 

I am self managing as it's a single property and I am trying to keep costs low. I am re-running numbers to see how badly I did on this first one haha, but thankfully been able to cover the expenses with my own cash. I haven't opened a separate account yet, but that is on my short list. Any suggestions on moving over funds and not making a huge mess of things?

Thanks,

Nick

Quote from @Matthew Irish-Jones:

Quote from @Jeff Kelley:

New to Bugger Pockets. I'm looking for multifamily properties in Buffalo NY.

 Hey Jeff,

Welcome to BP.  There are multi families all over for all different price ranges.  Are you looking for an A, B, or C class asset?  Cash flow?  Value add?  Are you well versed on running numbers, or are you looking for a RE agent who can set up pro forma's?

Lots of questions to answer to be able to narrow the scope of what you are looking for. 

Hey Matthew, 
Thanks for the warm welcome. 
I'm focused on Class B and C multifamily. I'm open to both flips and cash flow. Currently looking at a unit in south buffalo that I would potentially rent out. I understand based on your profile that you are.a property manager. Do you happen to know any good GCs in the area?

Thanks,
Jeff

Quote from @Bruce Woodruff:

Quote from @Jim K.:

8. "(Pick-a-minority) tenants are the worst." The absolute worst tenants I've had have all been white, native-born Americans. There really is a level of insane entitlement, a height on Mt. Bull***t, that only white people can reach while everyone else languishes at lower altitudes. I've seen an overwhelming amount of utterly freakish craziness up close and personal, and I can confidently bear witness that white people always end up being the freakiest freaks of all.

I was going to call BS on this one when I stopped and thought....Hmmmm... every customer I had as a GC that was an absolute insane nightmare.....was an white uber-rich entitled A-hole.

Buying a $12 million house does not mean that you own everyone that sets foot on the property....

 I've always found the worst people always end up inhabiting the ends of the spectrum. On one end is the cheapo bastard that wants to try to squeeze every dime they can out of you, and on the other is the ones that think because they're paying "good money" they can dictate your life terms to you. Most everyone that inhabits the center of the world ends up being pretty good people. It's why I like renting B-class stuff. 

People ask me all the time what I did at the beginning to be so successful and while I rattle off the usual stuff (reinvested all my money back into the business, delayed gratification, etc), it's really occurred to me again that before I bought a single house I thought about who I wanted to have as tenants, and tailored my purchases to that demographic. It's one of the reasons after all these years I've never had an eviction, or a tenant-initiated malicious destruction, etc. I've only ever had one person leave owing any money, and that was due to dog damage. I decided at the beginning I only wanted to rent to people who were gainfully employed (or students that had gainfully employed parents), had no criminal record, decent credit scores, no charge offs or bankruptcies, steady & stable job history, and the like. You usually find those people in the middle of the spectrum.