All Forum Posts by: Michael Strachan

 Yes! It's our job to determine what our clients value and cater to those needs. For an investor, their needs differ in that they don't need or want us wasting their time sending them deals that are in no way good fits for their investment strategy. I think this boils down to the main point of value we can bring to our clients by listening to them and what their needs and goals are. One investor could have needs that are entirely different from another in the same market.

I strongly recommend talking to a mortgage broker or your lender of choice. There are a lot of factors that go in to what is best for your particular situation and your goals. I'm located in the SF Bay Area as well and I have a great lender that I work with that might be able to give you some insight if you're interested in a connection. Good luck with your refi!

@Nick C. I couldn't agree more! I won't put a buyer in my car until they've spoken with my lender just to get us on the same page even if they have their own financing lined up. 

 I agree that value is the number one priority, but many of the investors I've spoken with clarify that they only care about the numbers (as they should). The value conversation tends to carry more weight with typical homebuyers who are looking for someone to simplify the process for them, handle admin duties, and negotiate on their behalf. Investors don't have much interest in those things, and as some have pointed out in this thread, they even see agents as obstacles or glorified taxi drivers/lockbox openers. Although those of us in the business know that our jobs are far more complex than this, how can we overcome this disposition from skeptical investors?

@Charles Kao I can understand that point of view. My area may be a tad different, as the median home price is above $1.2 million, so the median commission is $20k. That changes things. Also, not every agent has the means to do every good deal that comes across their desk. In the Bay Area, most investors who invest locally do it largely for appreciation and cash flow is more scarce.

 It's important to consider where your advice is coming from! Often times, people who tell you not to do it are going off some anecdote of someone they know who failed. If they haven't achieved the goals you hope to achieve for themselves, then take it with a  grain of salt. That's not to say they are wrong necessarily but it's always better to hear from people who have actually TAKEN ACTION! 

I'm hearing a lot of feedback that most serious investors don't use the term "investor friendly", however I'm curious why that should be a deterrent from working with people who do. My thinking is that working with an investor during their first few transactions would make them more likely to work with me again in the future as they grow their portfolio. I'm in this for the long haul and my understanding is that the most effective long-term strategy is to nurture and grow relationships rather than fighting to secure individual transactions. Any thoughts?

I completely agree with your analysis. Another thing that I think should be considered is a rise in short-term rentals through services such as Airbnb as a result of Prop 10 passing. I would speculate that there is a possibility that short-term rentals will become a much more popular option for homeowners and ultimately will take a large portion of the blame for the worsening of the rental housing supply despite the incentives for traditional rentals being diminished via government intervention. If this does become the case I believe that these services could become the new scapegoat and therefore be targeted by lawmakers in the next round of rent control initiatives. I'm curious to see what will happen and how it will affect the California housing market.

@Colleen Prescott I'm also in the Bay Area and I can definitely understand wanting to invest out of state, that's a popular option among investors near us. I would recommend checking out David Greene's book "Long Distance Real Estate Investing". It gives you the tools to feel comfortable investing out of state. And if you need a realtor recommendation out of state, feel free to message me! I've got a large network of realtors I could refer you to. Good luck and happy investing!

 I think this is because when the jackpot gets really big, people start talking about it (example, this thread). In that sense, as most people here have stated, they mostly just play for the fun of fantasizing about what you would do with the huge winnings and then discussing and comparing with your friends. I see it as mostly a conversation starter that's kind of fun to think about.