All Forum Posts by: Jake Alger

I agree with @James Wise, you don't want to compete like that.

I've always been an advocate for quality over quantity and Redfin is purely the latter.  Put it this way, and this isn't to knock them in any way, I'm a broker in the Seattle area.  Our market is insanely hot right now.  We don't have expired listings or cancellations hitting the market like we would normally.  If you see one, it's like seeing a unicorn.  

My point is, the expires or cancellations that I'm seeing when they do occur, almost always say "Redfin."

Cut rate prices will almost always yield cut rate service.

Now, aside from that, if you're looking to kick in commission because it's a friend, family member, etc. you definitely can.  Check with the lender and escrow company to find out what the caps.

Hi Jack,

I have clients looking to buy both multi-family units and single family.  It all just depends on their investment strategy.  I haven't heard any of them setting a timeframe for investing as most of them pick up the deals as they come along and make sense.  Sure, they try to put money to work from other properties, but in this market, it's kind of hard to exchange.

Most of my client investments thus far have been flips.  Flippers in this market, particularly around Seattle / Bellevue (the big cities) are still able to find deals, but mostly off market or from auctions.  They are paying (in my opinion) a premium at auction right now but with the property values increasing quickly, by time they are done with the project they can justify the cost.

It all just comes down to strategy and what works for you.

Hi Chris,

Deciding to make a career change, especially to something that is purely commission based and has a lot of fees starting out, is a major decision.  Don't take this the wrong way, but I don't think you're going to find the right answer on this forum.  The best answer is going to come from YOU. Being honest with yourself about how hard you already work, not about how hard you plan to work, is going to play crucial in your determination and ultimately will somewhat factor into how successful you are.

If you have a lot of passion and drive, like you mentioned, already have an understanding about real estate and structuring deals / transactions, perhaps it's the move to make.

I started out with getting my license to use on the side.  Only after I felt settled did I make the switch to "full-time."  I love the industry.  I love real estate in general.  It's not a profession that is easy by any means, especially starting out.  But it can become easier the more you work at it; the more deals you do. One thing that attracted me was that everyday is different.  No deal is the same, no property the same, and at the end of the day, I love helping people fulfill their goal.  

It's like a dynamic real life game.  Just don't lose sight that it's real life.

Best of luck!

Hi Samuel,

Getting a real estate license is something a lot of people get just to help friends and family.  I was one of those people before making the full-time switch.  I would recommend that if you do get your license, you do so with the intent of using in on the side.  Make connections with other local agents who have made a career of it.  Attend happy hours, networking events, charity events.  Real Estate is a blast, but it can be hard starting out.  Prospecting to get clients will be the hardest part in my opinion.  So if you start out part-time doing that, the rest will come.

All that being said, you don't need a license in order to "learn how real estate works."  Sure, it can help if you're talking to people to mention that you are a broker, but outside of that, you don't get any special privileges or knowledge just from earning your RE license.  A lot of information can be found online, through books, your local real estate commission, other agents, investors, etc.

Focus on learning and making connections.  You will know when the time is right to make your move.

Best of luck!

Hi Jack,

In our area (Seattle), appreciation has played a major factor in my investor clients purchasing decision.  It's much more difficult to cash-flow properties right now in our region.  That doesn't mean it can't be done, it's just very competitive and homes have to be moved on quickly.  We have an influx of cash from overseas hitting Seattle and most of the buyers aren't buying for any purpose other than to park cash; at least that's been my experience.

Buying for appreciation and cash-flow are two different strategies.  One provides you with consistent income along with the benefits of appreciation over time (although secondary to the primary reason).  I would argue that rental properties typically do not appreciate as much nominally than homes purchased for pure appreciation or flipping.  The reason I say this is that cash-flow properties are typically cheaper on the broad spectrum of prices and in different neighborhoods.  That doesn't go to say that this is 100% true because it's not.

In my opinion, it's really just up to your strategy and needs.  As with all investments, mind you i'm not a financial advisor, diversity tends to be safer than the alternative.  Not knowing exactly where the market is going, although models are predicting another crazy year here in Seattle, is enough for some people to just take a break and see what happens.

Lastly, as you noted, knowing the economics is a key factor here and in our market, it's simple Demand outweighing Supply by ridiculous amounts.

Hi Jacob,

A deal of this magnitude is something you might want to tread cautiously with. Make sure you are really vetting whoever you may get into business with. 

As far as the listing goes, it may be an easy thing to list and get offers in this market but as someone else mentioned, it would probably be a good idea to partner with a seasoned broker to help with the process. There’s a lot that goes into brokering a deal and keeping them together, especially in our market right now with a lot of overseas money hitting Seattle. 

Hi Brian,

I would definitely refund the money to the buyer and have them submit it properly to escrow. It would be just another added layer of protection. Make sure you notify all of the proper parties, especially your designated broker to ensure they're aware and see if they have any advice. Perhaps this has happened before and they know the exact answer.

Hi Brian,

I hadn’t seen this yet, only heard something about it. Thanks for sharing!

Hi Dain,

First off, Welcome!

Second, Congratulations on graduating and getting your first post-college job! My hope is that you are using your degree unlike most of us :)

Unfortunately I don't have any referrals for you as I'm a broker up in Seattle.  However, you could take a look at the agent forums for Sacramento and post something there!

@Jack B. From a quick glance at your link, it appears to be the cities I mentioned in my post are definitely growing quickly.  That's the crazy thing about our location is that you can only move north or south, not really east or west due to the mountains / water.  I would expect for the southern regions to pick up even more if these numbers prove what they suggest.  People will be priced out of the northern areas and be left with looking south, if they want to keep their commutes.

I would assume your properties in South King County are going to see higher cash flows in the coming months along with greater appreciation.  This year is setting up for another run for the record books.  It's going to be a crazy summer.  Those who get in early are going to have the better opportunities in my opinion.