All Forum Posts by: Tracy Maddox

This laborious nature of the Berkeley permit process is really an issue.  I live in the Berkeley Hills but am looking for flips in Oakland. I would want to hear from your friend's contractor about scope of work and a timeline before putting any money into this.

I work in real estate in the East Bay and what I'm hearing is that our market is still going strong and will most likely for quite a while due to lack of inventory.  San Leandro is a good bet, because many buyers are being squeezed out of Oakland and are moving south.  I think you're right on track!

Nice split!  :)  You're right...that's what's happening.  However, it's gotten me thinking.  If I begin to buy and sell properties properties as a flipper I will be running the deals through my brokerage so it seems they will need compensation of some sort.  Anyone doing this on a regular basis with a big brokerage?

I'm wondering how fellow realtors run their flips through their brokerage.  I'm working on my first flip, dealing with an individual who doesn't have an agent, and it seems to me that I would obviously not want to take a commission on the buy as that will help incentivize the seller.  But this has made me wonder...do you pay your brokerage your split based on what your commission would be on every deal...both buy and sell?  That would really cut into profits, especially here in L.A. where home prices are quite high.  Does anyone have a special deal with their broker for their flips?

I've seen it go both ways as well.  My thought is that it really depends on the area and how shoppers are buying in that area.  Here in L.A. Zillow leads on the Westside are amazing...everyone's looking quickly and electronically.  However, just over "the hill" in the San Fernando Valley the leads I've seen fellow agents get are indeed junk.  

One last thing. Until you have a great profile on Zillow meaning lots of reviews and a full bio etc I think it makes no sense to be a premier agent.  You may get your face in front of the public but once they click on your name if there's nothing there they're going to move on.

Congrats on getting your license!  I would go a different route than what's been said actually.  My advice would be to join a team such as Tami Pardee or the like.  The reasons for joining a team are that there's built in lead gen such as open houses and Zillow leads that are given to you in a constant stream.  You're also working with more experienced agents that are there to help you learn.  You'll give more away as far as split but it's well worth it when you consider the volume of business and knowledge that you'll receive.  As an example, a friend of mine and I became agents about a year and a half ago.  She joined KW Studio City and I joined a team on the Westside.  After one year she had done one transaction...I had done 20.  I sold 20 million in real estate in my first year, learned a ton and then went out on my own.  87% of agents fail.  I think you up the odds in your favor by joining an established team.  Hope this helps!

As a realtor I can give you my boots on the ground experience.  This year we seem to be moving to a more stabilized market.  Inventory is increasing slightly in some areas and homes are on the market a bit longer before being sold.  The Westside continues to move at a faster clip than other areas however.  I think this is due to what I call "The Google Effect".  Google purchased 12 acres in the Playa Vista area and much tech is moving in creating the "Silicon Beach" idea among locals.  People who might have sold are now holding off a few years as they see more money on the table before cashing out and moving to Oregon. This seems to be keeping inventory tight in these areas and prices moving north.  My last deal was in Westchester representing a celebrity who could no longer afford the Santa Monica area.  We had to beat out 12 other offers to win the house!  With this kind of interest I don't see prices dipping, especially on the Westside, for some time.

Hi @Vanessa Ryder and welcome!  I'm a realtor in L.A. looking for my first flip and would love to connect to share knowledge. Love the idea of the contractor partnership.  I've seen that model work well here and am currently looking for area trusted contractors. The real estate market is stabilizing here and I see a lot of rehabbing happening but I still believe there are deals to be had for the savvy investor.  Wishing you much success!

There are areas that are quite a bit less expensive but are up and coming.  Ladera Heights and surrounding areas are much more affordable and might be a good candidate for your needs.

Hello all,

I'm a realtor working in Los Angeles with a goal of moving into investing.  I connected with an investor recently who has a small business flipping houses in the area.  I was able to bring him an investor who put $50k into one of his projects.  My question is what sort of bird dog fee would be appropriate for this?  I believe she will continue to invest with him over time so I would like to put a written agreement in place with agreed upon terms.  Would welcome opinions on what is reasonable and if anyone has done a deal like this before.