All Forum Posts by: Clay W.

So I will have to find out how to join each individual MLS for the areas I would like to research. If anyone knows how it works in Northern California, then your input would be appreciated. My interest stems from various posts and podcasts where the person says that they have their license (although they do not always say if they are employed under a broker or not) and they easily are able to scour the MLS for comps or to actually search for and bid on tens or hundreds of properties with ease.

I would not have a problem to untilize the help of a full-time residential agent to acquire a property in the end, but I want to find out how to obtain this "freedom" to search and learn and bid independently.

Forgive me if I misunderstood. I work for a boutique commercial capital markets firm and we have nothing to do with residential RE (which I assumed was the main core of the NAR). We also transact in all markets in the Western US so tough to pick out a "local" market as we have our hands in many of them.

I don't believe that my firm is associated with the "Realtor" classification, nor do we use the MLS for our business practice (although we are actually one of the heaviest users of CoStar in the US).

So, as actively licensed, I can simply join the local Realators group and pay a fee for MLS access? Any idea as to actually submitting bids on properties, etc - since I cannot hang my license under mulitple brokers?

@J Scott, Out of curiosity, why have you not chosen to obtain your Broker's license as of yet - given your annual volume? I assume the cost benefit somehow remains with simply holding a salesperson license or am I missing something?

I recently received my California RE salesperson license. I currently work in the industry for a broker (where my license is registered). However, I work in the commercial transaction realm and have nothing to do with the residential side of the business.

Therefore:

- How can I use my license to get going with research (i.e., using MLS) and to approach deals as myself being "my" licensed agent? In other words, I cannot use my current employing broker to fiddle around on MLS and to use for acquiring/selling/making offers on properties.

- Must I register/pay fees with some other type of "independent" brokerage house to act as my own agent and to take advantage of all that being a self-representing agent has to offer?

- Is it even possible to have my license registered with/under the supervision of two separate brokers?

Bryan,

Can you tell me what is the 'general' equity outlay % you've seen recently for spec-home construction/major flip projects in established neighborhoods?

Is it 20%-30% like home-buying or much more?

If someone sought to put down, say, 50% of total project budget costs, would lenders normally consider this level very favorable to make a loan? ...or does it always depend on the property/project?

Emilio R -

I know that there are probably 1,000 other posts here on BP about spec building, but I was just curious (from the generic example above) if you, have found it possible to do spec homes (or have known others) who honestly manage to pull off consistent 30% returns on specs and/flips.

Ex: Sales Price $450k ($135k profit) #'s adjust for any area/market

The reason I ask is because - *in a perfect world* - it seems like a no-brainer business when a 30% return could mean an 80% + cash-on-cash return if the initial equity outlay was a 'respectable' 50% down.

In other words, without walking on a thin blade of <=20% down, it seems that incredible returns can be made over and over if given a year's-horizon.

Question for Rich and other "new build" investors:

Do you any thoughts / input regarding modular construction pertaining to the frame of the home?

In my study of new building practices (energy-saving, etc.) I did some research on modular design. It appears that it has come a long way and adds many benefits to the overall construction process including:

- Reduction in build time: Because the frame of the house is built off-site, it can prepared while the site and foundation work is being done. Once it arrives on site, the frame can be installed in a matter of days versus weeks.

- Increased efficiency: I've read that a typical stick-build home is framed with 2x4 and modular walls usually have 2x6 with thicker insulation.

- Less wear: Because the panels are built in climate-controlled conditions, there is less chance of weather damage during construction which can lead to warping, etc.

I've seen estimate that this type of build can also lead to savings of 10% or more in total construction costs. However, there is still debate as to the long-term appreciation values of the homes.

What are your experiences with this?

Karen Margrave

Yes - given how many different plays there are (and seeing how carried away folks got when I was briefly in the mortgage arena 10 years ago), I suppose I was just thinking about how best to optimize this type of paradigm.

Every situation varies, but you provide a very concise outline, nonetheless!