All Forum Posts by: Patrick Hancock

Hello! 

We get a lot of "what's your offer" from homeowners when searching for off market properties.  What is your strategy in this situation? Do you give them an offer that is close to market value just to get a foot in the door? Do you give them a range and say that you'll need to see the house in person before finalizing an exact offer amount? Any insight and suggestions are much appreciated.  

Thank you in advance, 

Pat

@Joe S. That’s a great question. In my humble opinion the greatest challenge in this business is the inability to “disconnect”. I’ve been a real estate broker and investor for the past 18 years and it doesn’t matter if it’s Sunday morning at 6:30AM, Easter Day or Christmas something real estate related comes up or at the very least it’s on your mind. Let’s not even get into discussing the waking up at 3AM every night when the brain starts grinding away in preparation for the day. With most jobs when you “click out” you’re done and can detach. Not with real estate and that’s what causes that burn out feel. Believe it or not taking vacations or trying to take a day off doesn’t help me as I always have my phone because I have two children and need to be available just in case so once again can’t fully detach. What has helped me tremendously manage burn out or as I say to my wife I simply don’t have any available bandwidth right now to talk about painting our own house (she jokes that I pay more attention to our rental properties than our own house which is probably true lol) is to create my own version of a “miracle morning”. Part of that is reading and another part is that I hit the gym on the way to the office. Both produce wonderful results to help calm the mind especially since it’s early (i get up at 5:30AM) and most calls don’t start coming in until after 9AM. Then when I get home from work I’ll play the guitar for about an hour…that’s my consistent hobby to help wind down at the end of the day. Lastly is continuing to work on “Who Not How”. Great book Id recommend reading. Basic point is that you can’t do it all. You can try but results typically won’t be great and trying to do everything yourself is the fastest way to burn out. Good luck my friend!!!

- Pat

For those of you using software programs such as Propstream and Podio with lead managers making phone calls and following up with leads... what have you found to be the best way to incentivize them? Our current revenue is not enough yet to pay them hourly or a salary so what they earn would have to be tied to a lead they brought in, follow up with etc then ultimately turning into a closed deal.  2% acquisition fee? Other suggestions? 

Thank you in advance!

Pat 

@Jose Lopez

Hi Jose and great question.

My humble suggestion is to:

1. Learn, learn and learn more so you become the “expert”

2. Build as many relationships as possible

3. Become proficient in finding and putting together deals

4. If you can accomplish the first three the money (partner) will find you

Good luck!

Pat

@Joe S.

Luxury Vinyl Planks every time. Very practical, cost effective and look great.

@Fabricius Eusebio

Always a good time to buy if you buy right. It’s an incredibly competitive and challenging market to buy in right now but keep grinding and you will find/create that deal.

@Jon Martin

This has nothing to do with your property so need not disclose. Let your tenant move out and find someone new.

Hello and thank you in advance for any and all comments and/or suggestions!

For those of you that have been able to obtain a loan for your LLC, have you found that banks are looking more for cashflow or AUM? My partner and I have recently created a LLC to purchase real estate through. First property has been acquired and looking for the next. What would place us in a better position to obtain a business loan to help scale? Buying the next several properties cash to show greater Cashflow or using leverage where we could add more properties (greater AUM) yet would then show less Cashflow.

Pat

@Payson Scott

Extremely difficult decision and one that is often made in hindsight. Take myself for example…I spent 5 long years in college and in hindsight did not need my degree as I am a full time real estate broker/investor. I’m 49 and have a 19 year old son who attends FSU. My advice to him as well as to you would be to get that degree and enjoy the college experience. You can still make money and invest in real estate while in school but if you do not get that degree you more than likely will not go back and get it if things do not pan out the way you want them to. Just my humble opinion.

@Brady Wiley

Great question! I would say my greatest daily struggle is making time for lead generation to find deals. I’m a busy real estate broker where my day to day schedule can fluctuate greatly. I make every effort possible to block time off on my calendar to lead generate but more often than I would like I end up having to do something related to my sales business.