All Forum Posts by: Steve Milford

@David Kim They are looking for a deal. I just tell them, "Yes, I will sell for appraised / retail value minus 5% for lack of Realtors." It stops then all lol, they all tell me no.

If I had $150k, I'd scour around looking for an assumable loan and a distressed seller. That's my next adventure.

There isn't really, except screen them in the order they come in. You basically need to screen like you can't see the people applying and have written policies of what you are screening against. If you are getting too many applicants, your bar may be too low.

@Kris L. The problem I see is that I suspect that comps were used in pricing prior to April or May. That was a totally different market than we have now. Appraisers value based on a short distance surrounding, but most Buyers don't think that way. The ability to work at home for many people has changed much in where people consider to live. I admit that I know nothing of the area, but I see homes of 3/2 from $430-$530 of similar kind on Zillow. Buyers can afford to be picky, because there is relatively so few of them right now compared to six months ago. Your showing count is a direct reflection of the price point value that Buyers see. They have choices and are telling you they don't see the value. The answer? Price!!!

Aside from that, read the description outloud to yourself, would you buy here? This made me chuckle, "The lot next door was recently purchased where the new owner will build a 2 story 2,700 sqft home that will add value to this sought after neighborhood." Why would I want a house double the size of mine next door? That's a turnoff. Here is another one, "living on a cul-de-sac which means traffic will not be a problem on this street". Duh, no brainer. Also consider the comical side of this, "The home has been remodeled with the highest level of detail in mind." So what's up with bathroom with the brown tile? Take that stuff out. Take out the verbiage that implies, "don't miss out," at 28 DOM no one has scooped it up yet and no one is missing out.

This spring I had a listing where the owner told me to list it for xyz. It was overpriced as comps were not relative because of a bad location (next to a freeway) and all comps were of 1980/90 or newer homes versus 1950's style, which this one was. But the owner was dead set.

After many days on market with few showings, Sellers tell me to change pictures and change order of the words. Still few showings and still didn't sell.

Problem? Same, price, value.

It sucks, I get it. Flip a home, spend a bunch, expect to get a bunch more. It should sell, yet it doesn't for the price, that's the plain fact. I liken this to a car lot. When there are no choices, you get what you can. But if there are 5 car lots all next to each other, people shop value unless they are seeking something in particular.

What happened to that listing? I told Seller, if it was me, I'd rent it out until market comes back. So I cancelled listing and it rented at market rate 4 days after being listed for rent. As a rental, being next to a freeway or style of home wasn't as big a deal.

The interesting piece is I learned there was another agent "friend" behind the scenes telling them what they should do and this agent was waiting for me to cancel the listing so they could swoop in and save the day, but that scheme got ruined when I suggested the Sellers rent it out. I confronted agent, who said, "I'm only friendly, we aren't really friends." Lol, with those kinds of friends who prey on each other for greed, who needs enemies?

I went to go look for the house you were talking about, and the only thing I can see is manufactured homes on leased land. These are not FHA eligible, as they require Chantel loans (like car loans). For the FHA to work, it needs to have the land attached and if there is a manufactured home on it, it needs to be de-titled. If you need help looking, feel free to give me a call. If there really is such a home available, you can always just add the closing costs to the purchase price to roll those costs into the loan, which happens all the time. Again, give me a ring if you need some more assistance.

You can look at crime maps. Vancouver is spread not very dense, except near downtown and every part of town offers something. Feel free to reach out to me so we can chat!

@Casey Decker

Without the learning curve of acquiring properties... you will still need a learning curve of evaluating more and more. Maybe set a goal evaluating 50 properties? Most people get antsy and can't wait that long, but if you do you will find better homes than others. The only cost in looking at 50 homes is the time and gas in looking. But you'll be learning at the same time. I know when I look for my next property that I will need to look at a gob. Personally, I like dirty houses, as they usually have hidden potential behind all the dirt and stuff. What's a few trips to the dump?

But coming out if the gate with a -$500+ monthly cash flow is not good. That's just a huge headache. Don't fall in love with a house, fall in love with the numbers.

Just keep an open mind. If you want to do it - go for it. If you stop looking at your job as who you are, what does it matter how you spend your time? A job is just one income stream. Having a rental is another. Being an agent is another. Rehabbing homes is another. STR is another. Lol. Do what the rich do, and build multiple income streams. When you get tired of working on one project then work on another. Mentally, I know I am good for about 45 hours per project (job, role, whatever you want to call it) per week. After that, I move to another. Plus I don't have a "career" in real estate. Take that out of your vocabulary. I help people buy and sell homes, and my phone doesn't turn off.

Some people golf in their off time. Some people like to drink or attend happy hour. Me? I help people buy and sell homes in my afternoons, evenings, and weekends. When I want to work as a Realtor, I go find a Seller that needs help. When I don't, I don't. Simple as that. All the nonsense about how you can't be good when you are part-time is hogwash. If you really think about it, those Realtors that are super busy, aren't always available either lol, and they defer to their assistant A LOT. It's a mindset. Where you are physically is irrelevant too. I've written contracts being in other time zones. Need someone to show a home to your buyer when you're on vaca? Just pay another agent to show on your behalf - easy.

Here is the ironic piece. As a part-time agent, I don't need to do a large number of deals to cover my overhead - lol, because I don't have big "overhead". Aside from hanging your hat (license) with a brokerage, all you need is a laptop ($300 at Walmart), cell phone w/ hotspot, $100 per mo, some business cards (not required), a CRM (the one in your phone works fine when coupled with a task list - both free usually), maybe a web site domain @ $12 from Google, and a simple one-page site as a sales sheet. Things that make your life easier = 1) Adobe Scan and DC ($17 per mo), 2) Docusign or another e-signature platform ($260 NAR rate +/-). These costs +/- are $2,000 per year total. Your forms and E & O often come from your brokerage, and if you sign on with a firm with a reasonable co-commission rate you won't be giving all your money away. Advertising, marketing, and mileage add up but realistically the only thing you need to do is spend gobs of time belly-to-belly talking to people, handing out your card one at a time as fast as you can, and listening for opportunities to help people. Talk a lot, to anyone and everyone, and listen even more, and you will find yourself helping people. Figure out where you spend your time and use it instead to learning all you can to be the best agent you can be. When I was a wanna-be I had lots of time for Bigger Pockets, now not so much. Read Profit First, Shift By Gary Keller, The Power of Human Connection by Kody Bateman. The biggest of all, which you can't buy, is being super organized and be a natural problem solver. There are systems that help, but these are mindsets too.

My motto is to help anyone that wants help. That is the ironic rub - many potential buyers and sellers are just tire kickers, but you don't know until you talk to them and go through the steps toward a listing or putting an offer on a house. Talk to everyone you meet about real estate. 

I.e. I was walking to my neighbor's house to pick up my kid today. The neighbor is outside cleaning up his yard minding his own business. I make a point to interrupt him and say hello. He asks me when the homes prices are coming way down. In my market, it is NEVER, not for what he wants. He is a renter that wants the "super-good-deal". That's great, but he needs to talk with a lender and I have referred him to a few. But he is not truly interested until he gets his financing in order. And so I just keep following up with him every month or two or three, until he is ready to buy. It may be never, he may refer me to a friend, or he might go to the next stage. We just never know. Rinse and repeat, over and over again. And follow-up. You may have heard that the money is in the follow-up. That is 1,000% correct. 

You just never know - never judge a buyer or seller by their cover. I have helped people that didn't look like they had two dimes, buy and sell houses. 

@Julie George Just let her change the locks as she sees fit and give you a spare key. That way she can feel safe and she has the choice of the lock set. If she wants to go cheap, that's her choice.

@Kar Sun I see the issue is really that your tenant-landlord relationship is no longer a business relationship. You care too much about your tenant's "reasons". Who cares. I don't care if my tenant paints the walls pink if that makes them feel better, just pay the stated rent.

When the cost of doing business increases, your price should increase. That's it. All this banter back and forth is just a waste.

When my costs increase, I raise rent by same percentage. It just is.

I am assuming you screened the guy well in the first place, after that, why would you care what income he has? Likewise, if he loses his job he still has to pay rent.

I personally would rather charge a little less than market rate, as I receive less squeaks but that doesn't mean I don't raise rent though. It is still a business.