All Forum Posts by: Jake Alger

Hi @Tim Rogerson, 

Welcome to BP!

Congrats on your transaction, that's a big step in starting your Real Estate career :)

Hi @Megan Heffernan,

I definitely read the first part of your post as "when I accidentally moved from Florida to Seattle" the first time through lol -_-

Deals can be found outside of Seattle when it comes to multi-family units, however, they are far and few between.  You've got the right idea about looking in the Tacoma, Everett area from your response above.  Even then, properties are being extremely overvalued.  That said, it all depends on your strategy and what your criteria is.

Whatever you do, stay outside of Seattle city limits if you are going to rent.  The rules and laws regarding rentals are a joke.  Do a quick Google search or look at similar discussions on BP - there's plenty of them related to why having a rental in Seattle is not a great idea.

Educating yourself the way you have been is awesome, keep it up! The more deals you can analyze off the MLS the better. It will become second nature and you'll be fast - which is what you have to be in this market.

Feel free to reach out if you have any questions :)

Hi Yuan,

It is very difficult to cash-flow properties right now in the Seattle and surrounding areas. Homes are being overvalued, particularly multi-family properties. 

That said, deals can be found that make sense. Your best bet is to work with a broker who knows the markets and has an eye on properties as they hit the market. As with everything right now, you have to move extremely fast to acquire properties; especially those that are perceived as deals. 

I know of a few properties that have investment potential but it all comes down to your strategy and level of involvement. 

I’m more than happy to discuss what your needs are and what your strategy is. Feel free to reach out 😀

Hi Derek,

Congrats on passing your exam and making the leap into what can be a very prosperous and fun career!

I wouldn't focus the money on SEO or paying for leads.  Purchasing things like Google Adwords to help drive traffic to your website is extremely costly and doesn't pan out very often.  Likewise, SEO is a thing of the past.  Unless you are on the cutting edge of something new and you are able to streamline and market your website to keywords that are up-and-coming, or there are no competitors (not likely) for the words you're optimizing, it's a waste.  Too many big companies like Redfin, Realtor.com, Zillow, control the marketplace of advertising because they quite frankly have much, much, much, much larger budgets than the rest of us.

That said, I would spend the money sparingly and try to get the most bang for my buck.  Perhaps I'd print marketing materials, send mailers, attend events, network, etc.  Those are the typical things you're always going to end up doing if you want to thrive in this business.  

Run some Facebook Ads to targeted audiences -- don't overspend here, but don't underspend.  Facebook can be a good tool in the long-term, so I always have something running on there.  The key is to give their algorithms time to adjust your ads.  I will start a campaign, put a small/normal budget on it, and give it a week before I touch it again.  If it appears to be doing well, generating activity, I up the budget.  If not, I adjust the ads and give it another week.

The key to advertising, and none of us are experts at it, is finding who you want to a provide service to, and what value you're going to give them.  Get in front of people as often as you can, through as many advertising channels as you can.  Find a "farm" area, a place you want to focus your attention on, and send mailers, target Facebook ads, do some phone calls and host an event in that area -- for that area.  Showing people you are part of their community by having your face everywhere, will help tremendously, especially if you're new.

That would be my plan -- hope it helps!

Best of luck!  Feel free to reach out :)

Hi Chang,

A 3-hour single showing? Never had one go that long.  Longest showing I've had was approximately an hour.  If you couple in an inspection then sure, 3 hours isn't out of the realm.  But never a 3-hour single showing.  Kudos for making it through! 

Hi Cody,

Firstly, welcome to BP!

Secondly, I think the tax you are referring to is what we call FIRPTA (Foreign Investment in Real Property Tax Act).  The FIRPTA Certification requires that if a selling party is a non-resident for purposes of U.S. income taxation, a portion of the sale is withheld.  Escrow would withhold 15% of the amount realized and pay it to the IRS if this applies to you.  I think you'd really need to check with an accountant or attorney to know for sure.  Being that both of you are on the loan, I don't know where that would put you.

Also, here is an idea. Instead of selling your condo and using it to fix and flip, why not leverage it with a HELOC, refinance, etc.? This would avoid having to pay taxes on any capital gains since you are using the condo as an investment property, and you would retain the asset which someone else (your tenant) is paying down the loan balance. Just food for thought :)

Hi Noah,

The way it works here in Washington, and I'm sure it's the same or very similar everywhere else, you have to hang your license with a designated broker.  That is unless you're a managing broker yourself and appointed to your own firm as a designated broker.  The requirements to become a managing broker are different than a regular broker (normal salesperson).  You have to pay more money, take another test, and I'm sure are held to stricter continuing education requirements, given you can / are now responsible for anyone under you.

I can see where if you're doing multiple transactions a year it can be helpful.  Mainly from the standpoint that you gain a commission from the properties you're buying.  You can roll that commission money in as part of your down payment during the escrow process.  This means less money out-of-pocket to fund a deal, technically.

Ultimately you'll have to weigh the costs of maintaining that license like was mentioned above me. We all typically have the main fees such as MLS dues, NAR dues (not required), a fee to hang your license (desk fee), continuing education fees, license fees, and a commission split with the broker. If paying those fees are greater than the commissions you receive throughout the year, it's probably not worth it. All depends on what the numbers show YOU.

Hi Jason,

I am not an attorney but do know plenty of brokers that have a license to practice law.  I would venture to say that the benefit is protection; if all else fails, you pull that card to protect yourself.  You also would have a deeper knowledge of the laws regarding real estate, particularly since a portion of your practice now is real estate related.

I may be mistaken, so please let me know if I am, but as an attorney, can't you use your law license to broker transactions?  I've always understood it that attorney's do not need a separate license unless they want to hang the licenses of other brokers.  Perhaps that's something I misunderstood or misheard.  I never put a ton of thought into it seeing as it doesn't really pertain to me at the moment :)

I agree with @Account Closed - however, cash flowing rentals are getting harder to find in Tacoma.  Seems like agents are overvaluing the properties tremendously.  Guess it's all subject to your requirements though!  I've been looking in the area for an investor and there's nothing even close to the Cash-on-Cash they require.

Hi Harrison,

Welcome to BP!

I too studied finance in college and also have a background in tech.  However, I attended WSU :)

Real Estate has been a great path for me and can be for many.  Depending on your strategy, which sounds like you're working to figure out, you may find yourself loving real estate so much that you ultimately make it your "job."

I can understand your hesitance to the market here in Seattle.  It has been a crazy one to say the least.  While it is hard to find cash-flowing properties, they can be found.  They take time, effort and moving quickly when found in order to secure the property. 

Flipping, is something I would tread lightly with, especially if you're new.  Perhaps partnering with an experience house flipper would be advisable before pulling the trigger.  While there is tons of money to be made in our Seattle market, it's a fairly shark-infested market when it comes to cash offers and finding value.  Working with a professional who knows the ins and outs of the market and the areas you're trying to target is what'd I'd recommend.

I think you're starting on the right path.  Network, ask questions, form a strategy, and, oh yea, ask questions!  The more you can learn, the better off you'll be.  Learning from those who have been there, done that, and are willing to advise / help you will be your biggest leg up when you decide to jump in.

Feel free to contact me with questions anytime!

- Jake