All Forum Posts by: Sherry McQuage

Hello Kaleb,

I understand you're interested in wholesaling. In my area of NC, our local MLS's are writing rules to prevent wholesalers from being able to list and sell a property they have under contract. I don't know how it is in other areas, but wholesaling might be going under a transformation...

Where there's a will, there's a way.  Look online for https://kscore.kw.com/. You can receive training and tools at no cost to you.  It's a completely digital curriculum.  If you get your license and join Keller Williams, I would be delighted to be a (long-distance) mentor to you.

If real estate interests you (either as an agent, as an investor, or as a skill for future job change), if doesn't hurt to get the training and earn the license.  I worked in different fields for decades, was a stay at home mom, then activated my real estate license (it was inactive for 15 years and I stayed up on my continuing education).  When my youngest went to school, I changed my license status to Active, and have learned and enjoyed helping people buy/sell/invest for around 7 years now.

Everyone's journey is different....you might one day no longer be a firefighter...you might move to another state....you might want to buy a house one day and having a real estate license could save you some money.  My point is this:  it can't hurt to learn more and get the license.  Even if you never use it (Active status), you will learn something that can help you.

I'm in NC, and don't know much about CA real estate firms; I would think that as long as you pay any monthly fees, a firm would be happy to have you.  There are even online firms.  If learning is a lifelong passion of yours, Keller Williams Realty is know for it's amazing education and growth opportunities.

The years pass quickly...figure out what you want the next 1, 5, and 10 years to look like and go for it.

Best to you!

I agree with most of the commenters...get a written lease signed by all parties asap.  Then, check to see what a market-rate rent would be for the units.  Make gradual rent increases to get them back to market rates (research the legal way to raise rents).

If a friend or family member acts offended that you're finally taking the investment properties serious, that means they know they've been taking advantage of your ignorance.  Be polite, but be firm.  You've got to protect your interests because no one else will; at least you now realize that you made mistakes....you can learn and fix them so it won't happen repeatedly.

Maybe the friend/family member will be inspired by your actions to buy their own house/rental unit.  If not, they might be a barnacle....barnacles tend to join other barnacles on the bottom of a boat, until they are either scraped off or they sink the boat.  Happy sailing!

Just curious, how do you automate tracking expenses?  

My coach suggested (and I implemented) a "must do tracker"....it's a color coded spreadsheet (I like to print multiple copies and keep them on a clipboard to stay in my sight/top of mind).  Every day I mark how many calls to leads I made, how many people I contacted (and was it email, call, text) from my database/past clients....how many social media posts I answered or made, etc.

I don't know if that's automating, but every week I can quickly see how much of each money generating thing I did.

Do you use Google Calendar?  Or even a paper calendar?  I have learned to color code (highlighter) and plan the month/year or week ahead.  Family committments can be pink (or whatever color), money making tasks (green), follow up for leads/lead generation (yellow).

If it's on my calendar, it exists. Don't forget to annually mark time for vacation or family time.

You might consider hiring a teenager part time if there's something that is time consuming (for me, putting out 20 open house signs then picking them up).

Best to you!

Hello Robert,

I enjoyed reading your post.  You're correct, many investors think that using an experienced agent is just an extra expense.   Sometimes, it might be.  However, especially if the investor is buying in an area they are not familiar with, they probably will not know the nuances of the local area.  Yes, there's a lot of information online, but nothing replaces and EXPERIENCED honorable agent.

A seller whose listing expired with a different agent/firm is now my client; the other agent was from a town 45 minutes away from the flip property....the listing expired.  After it expired, I contacted the seller and they are now going to list with me.  What do I do differently to "earn my fee"?  I walked all the nearby comps, gave the seller my opion/list of what his property was "missing" (fenced yard, light staging, add a 3 board fence panel and landscaping here...) and advised him to get a surveyor to mark the lot corners...

The previous agent had not suggested they get a surveyor to mark the lot corners when he bought the property to flip....there's a chance the house or driveway may encroach the neighboring property.  

My point is this, I am actively involved/advising this investor, providing local vendors contacts (handyperson, surveyor, painters, etc) and I "don't wait for them to call me", I call them weekly.  I don't disappear when things get hard.

Luckily, the investor/seller agreed that adding a fence and some other things would bring the property a better sale price.

Not all agents are experienced, and not all investors need an agent.   But all it takes is one sour deal (investor loses a lot of money) for hindsight to kick in.

You're right....who you work with matters.

Do you have the financial strength to hold/carry these lots if they don't sell quickly?  It sounds like a good plan.  Just make sure you have stable finances.

Contact a local attorney who has experience in this type of thing.

Make sure to check the zoning to make sure mobile homes are permitted there; check for any hazardous waste designation for the area; will you need to have the parcels surveyed out in order to sell the size you intend?  You said public water was available...would the lots require a septic system to be installed or is public sewer available?  If a septic system would be required, you may want to check if the lots will perc.  (You said you could purchase them $20-$15,000 below market value.  Why are they so cheap????)

We all invest in real estate in order to make money, and keep in mind that someone who can only afford to live in a mobile home and seller-finance to buy the land is probably tight on funds.  Maybe also consider if they are "good people" that work in the community and just want a safe place to raise their family.  Money is...important, but it's also a way to make a positive difference in people's lives.  Just putting that out there.

"Be the change you want to see in the world."

Jaron Walling said something that caught my attention, "search for and buy a bad roof, leverage it during the negotiation"....especially of the property has been sitting on the market longer than normal for the current market, a "bad roof" might be a gift from the real estate genie.

My point is this: get good at estimating and fixing a bad roof (or any particular problem found with most houses that sit on the market longer) and you'll get comfortable buying/fixing properties that scare off other buyers.  You can use the "bad roof" or other problem to negotiate a lower purchase price.  You'll learn what contractors are good at such repairs, and eventually people will start bringing you "problem properties" with that issue.

Another related idea: contact a good local realtor and ask them if they know of any on or off market properties that would be a hard sell for most buyers.  Find out why, see if you can learn/hire to fix that problem, and you might have found your niche.

Do you know anyone or have a family member that is licensed in one of the trades?  You might learn from them, hire them, get advice from them.

Best to you!

My suggestion would be to manage it yourself for 1-2 years, then as you acquire more rental properties, you can start using a PM.  Meet other investors in your area and stay in touch with them; you can ask them questions that might prevent problems.

Best to you!