All Forum Posts by: Robert Carmody

Yes, it is very possible. It will take more effort or hard work than what most are willing to put into it, but $70-100k is more than what most agent earn, including those that aren't brand new. Start building your database, or Sphere of Influence (SOI) list with contact info for each person on the list-- include former coworkers, neighbors, extended family, friends, other business owners you know, etc. Study your database and your local market. Know your numbers. Are your contacts existing homeowners or younger people who are primarily renting? What's the average price in your area? This will give you an idea of how many homes you'll need to sell during your first year. If you live in an area, or have a database of existing homeowners, where the average home price is $200,000, for example, you'll need to sell more homes than if you live in an area where the average home is $500,000. If the brokerage you work for has a business coach available, hire one, and if not, you may want to consider hiring one independently. They will help you formulate a business plan based on your goal, how many houses you'll need to sell to achieve it, the sources of business that you'll target, and different tasks you'll need to do to reach those prospective customers.

Look for underserved sectors of the market, such as a neighborhood that isn't farmed by other agents. But, make sure it's a market that exists. Some neighborhoods have very little turnover, so putting a lot of energy or money into farming it isn't likely to produce much return. Unless you love doing open houses, don't wear yourself out of the business by doing multiple open houses each weekend, and hold those open that align with your business plan, such as in a neighborhood you want to grow your business within. When I started selling real estate, I was 22, and my broker, among others, told me I should work with 1st time buyers because I was young, and to do open houses in the university area. That ended up being terrible advice, as most first time buyers want an agent that can hold their hand and guide them through the process, and who has years of experience to look after their best interest. I also found that I preferred sellers to buyers. I looked to FSBOs as a good source of business. With their hands raised that they wanted to sell, I saved myself the time of trying to find the warm lead. I was persistent and consistent with my marketing material, something that they said the other agents contacting them were not. Those listings gave me the leverage to gain other listings through marketing, sign exposure, phone calls and so on. 

It's easy to lose focus as a new agent because there are so many directions you can take your business and there is a tendency to want to take on any and all new business. Plus, you have people calling to "place you on the first page of google" or sell you on something to revolutionize your business. It's easy to end up scattered, but if you stay focused on a business plan and have a good mentor or coach, you'll reach your goal, or beyond. 

You can try Berger Briggs @ (505) 247-0444, and they are an Albuquerque based insurance company, also licensed in Texas, and they have an office in Ruidoso. I know they provide coverage throughout NM, including rural areas that can sometimes be a challenge. They offer traditional home and auto policies, along with Landlord, Farm/Ranch, Umbrella Policies, etc etc. 

Bill Tobin Agency with Farmer's Insurance is also good and usually very competitive on their rates. They are in Albuquerque, and provide insurance in other areas of NM, and nationwide. I've had several investors that I work with purchase policies from him, after price shopping their options. Bill Tobin Agency, Farmers, (505) 899-8081. 

Hope that helps. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $146,000
Cash invested: $25,000

1956 Albuquerque uptown property purchased from family of original owners and in the process of preparing to list and sell currently.

What made you interested in investing in this type of deal?

I work with several investor clients who have purchased homes to hold as rentals or to flip, in the same general area, and so I had experience working with other investors and had a good grasp on this market and home buyer trends.

How did you find this deal and how did you negotiate it?

The property had several offers on it when it listed originally, including one that I had made for one of my investor clients. Our offer was the one that the seller accepted, however my client changed their mind about a week or two later and didn't want to proceed with the purchase due to personal reasons unrelated to the property. I was confident that this was a good opportunity and basically presented the seller with an offer that matched my client's same terms, and they agreed to work with me

How did you finance this deal?

Cash purchase

How did you add value to the deal?

Structure of the property was solid, roof was in very good condition, already had a new cooling unit. We made a few changes to the layout of the kitchen & dining area, removed an old wood stove, installed new windows, all new kitchen & bathrooms, flooring, paint, fixtures, etc.

What was the outcome?

Property is in final stages right now and will be listed within the next 2 weeks. There have been several good sales of very similar comps - same square footage/bedrooms/bathrooms/garage space - in the surrounding neighborhood. Two of the most recent were also properties that were being flipped, and were sold in the $225-235,000 range.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a full time agent in Albuquerque and have been very active representing investors in this particular area of town, so I handled the purchase myself, and plan to also list the property myself, through the brokerage that I work for. I work with a licensed team member who will handle the administrative end of the sale, and assists with marketing services also.

The Redfin buyer rebates changed in 2016 and are available if working with a Redfin employed agent only, not a "Partner Agent", and if purchasing a property for more than $200,000 within their predetermined market range for your area. This may or may not exclude multi-units or outlying areas, or homes outside of certain price ranges. The commission rebate is offered on a sliding scale, based on home price, and if you can answer yes to 1-4 and no to 5-6:

• 1) Is the sale price above $200,000?
• 2) Is your agent a Redfin employed agent, not a Redfin Partner Agent?
• 3) Is 3% being offered to the buyer's agent?
• 4) Is the commission rebate allowed by your mortgage lender as a credit towards closing fees?
• 5) Is the property located in one of the following states: Alaska, Iowa, Kansas, Louisiana, Maine, Mississippi, Missouri, New Hampshire, Oklahoma, Oregon, Tennessee, and Vermont?
• 6) Is the property a short sale or offering less than 3% to the buyer's agent?

If you answered yes to 1-4 and no to 5-6, your purchase is most likely eligible for the commission rebate. If so, it will be applied towards closing costs only. Any amount not used or not allowed by the lender will be returned to Redfin. The rebate is a sliding scale from about 0.19% of the sale price @ $225,000 to 0.55% of the sale price at $1,500,000. Spend $250,000 and you'll get a $480 credit towards closing costs. Step that up to $395,000 and you'll get $1,400. 

 It's not offensive to let someone know that their price isn't as competitive as other service providers, but that you'd like to work with them if it was. Personally, I'd be offended if I wasn't given the opportunity to keep your business. 

Yes, I live in Albuquerque in the Nob Hill/Ridgecrest area. Everyone has their own idea of good v. bad investment or their own way of gauging performance, but I think there are good investment opportunities here, and that we have a number of positives that suggest continued growth, along with some large and stable employers that generate steady demand for quality rentals.  There is a lot to be said for the stability of our market, or slower but steady pattern of growth here, especially if the investment property is being used for retirement income or if the stability of the investment income is important. Our 2018 sales data was released and with data back to 1985, our market has averaged 3.48% in year over year growth. With the exception of 3 years during the 2008-2013 recession, 1988 was the only year that Albuquerque's year over year value declined, and for 2.06%, which was recovered the following year.  Let me know if you have questions or need help. 

Hi Melissa, I have experience representing investor clients in both Santa Fe and Albuquerque, and with both multi unit and SFR. Locally, Santa Fe and Albuquerque are considered 2 different markets, and many differences between the two. And, within Santa Fe, you almost have 2 different markets between the area around the Plaza or the vacation/luxury market and then areas south of the Plaza that try to cater to demands for more affordable housing. There is a shortage of affordable multi unit rentals in Santa Fe, but the building costs are also high in Northern NM, so there are some different challenges there. Real estate prices and construction costs are lower in Albuquerque, and ABQ is typically a pretty stable market to own rentals property. It may not set the world on fire with high returns, but the rent is solid, vacancy low, and we don't experience the volatility that other markets in neighboring states do. Multi Unit will generate a little bit more of a return than SFRs, but I have clients with large portfolios of SFRs that do well with them too, and like that they appreciate with the housing market more consistently than the multi units. Right now the inventory of multi units is very low, but there are a few good opportunities. Investors often focus on the UNM/Nob Hill area due to the student population, but there are some good options in the Downtown/Old Town area where the acquisition costs will be lower and profit margin higher, and sometimes the Uptown has good options. Rio Rancho doesn't have many multi unit properties, but there are plans for several multi unit buildings to be built, which are available to purchase or reserve and purchase once complete. I think it is a market to watch because there is a concern of a real shortage of rentals on the horizon. Let me know if you have other questions or need any help. I've been working with investors here for about 14 years, and currently have customers with recent investments in both Santa Fe and Albuquerque. I've helped several acquire large portfolios of income properties, as well as others that like to renovate and flip houses, and have a couple customers that enjoy the Airbnb or short term rentals. Happy to answer any questions you have.

Robert Carmody

If the property is still actively listed in the MLS, you can typically contact the local Realtor Association or MLS office and ask them to remove it, or the managing broker of the C21 office who has the listing in the MLS. Normally the broker or office manager of a real estate brokerage can access and make changes to their agent's listings in the MLS, including a cancellation if necessary. A signed listing agreement, signed by each owner of the property, is normally required for a property to be marketed and placed in the MLS, and without one, the listing should be able to be removed easily. Once it is no longer in the MLS system, it will likely fall off of the C21 site, either immediately or within a day or two. Most MLS systems have policies and members agree to accurately report sales & listings, as the data is used by appraisers and other agents to price or evaluate nearby properties.