All Forum Posts by: Ty Coutts

Hello, Ben Mardis, here are the specifics for Washington State:

Buyer’s Responsibility: Technically, the buyer is responsible for paying their broker's commission. However, it's common practice for the seller to cover this cost. This means that the buyer's broker’s commission is usually taken care of as part of the overall transaction, similar to the standard practice mentioned above.

Broker’s Agreement: The buyer's agent will typically negotiate this arrangement upfront, ensuring that the seller covers the commission from the sale proceeds. It’s part of the agent's duties to make this clear in the purchase agreement or the buyer's brokerage agreement.

Clarification: The broker you met with was likely emphasizing that, according to the letter of the law or the standard contract language, the buyer is technically responsible for their agent's commission. However, in practice, the broker always negotiates for the seller to pay this commission.

Negotiation Tactics: Good brokers negotiate to ensure that the buyer is not out of pocket for their agent’s commission, aligning with common practices and making the process easier for the buyer.

How to navigate this:

Ask for Clarification: If you’re unsure or need reassurance, ask your broker to explain how the commission will be handled in your specific transaction.

Review Agreements: Carefully review the buyer’s brokerage agreement and the purchase agreement to ensure that the commission details are clear and that the seller is covering the buyer’s agent commission as negotiated.

Hello, Hazem Abdallah, when choosing a company for cold calling, especially in terms of calculating KPIs and ensuring lead quality, it’s important to consider several factors, including their reputation, services, technology, and customer reviews. Here are three that I like:

Callbox
Overview: Callbox specializes in B2B lead generation and appointment setting services.
Strengths: Offers robust KPI tracking, multi-channel marketing, and high-quality lead generation.
Technology: Uses proprietary CRM and lead management tools to track and optimize KPIs.

SalesRoads
Overview: A B2B appointment setting and lead generation company that focuses on quality.
Strengths: Known for high-quality leads, detailed reporting, and KPI tracking.
Technology: Provides detailed metrics and performance analytics to clients.

CIENCE Technologies
Overview: Specializes in lead generation, appointment setting, and data enrichment.
Strengths: Strong emphasis on data-driven approaches and KPI measurement.
Technology: Uses advanced analytics to track lead quality and performance.

Here is some information to consider when you make your decision:

Reputation and Reviews: Look for companies with positive client testimonials and case studies demonstrating success in your industry.

KPI Tracking: Ensure the company has robust systems in place for tracking key performance indicators (KPIs) such as call volume, conversion rates, appointment setting rates, and lead quality.

Lead Quality: Evaluate how the company sources and qualifies leads. High lead quality is crucial for effective sales follow-up.

Technology and Tools: Companies that use advanced CRM systems and analytics tools tend to provide better insights and more efficient lead management.

Customization: Look for companies that tailor their services to your specific needs and industry.

Transparency: The company should provide clear and regular reporting on campaign performance and KPIs.

Hey Pinny,

When considering purchasing a turnkey property here are a few key points to keep in mind:

Experience and Reviews: Research reviews and testimonials from other investors who have worked with RentToRetirement. Look for feedback on their service quality, property management, and overall investment performance. Join real estate investment forums or groups where you can ask for firsthand experiences and advice. However, I have seen some weird listings on this site and it also does not have the best reviews. As an investor in real estate myself, I much prefer working with an individual rather than a site like this. However, that is just my preference. 

Market Selection Criteria: To choose the right market, consider factors such as:

Economic Growth: Look for markets with strong job growth, a diverse economy, and increasing population.

Rental Demand: Identify areas with high demand for rentals, which can be indicated by low vacancy rates and high rent-to-price ratios.

Affordability: Ensure the market offers properties within your budget that also meet your cash flow and appreciation goals.

Property Management Quality: Verify that there are reliable property management companies in the area to handle day-to-day operations, especially if you are investing from a distance.

Comparative Market Analysis: Perform a comparative market analysis to compare potential markets. Assess historical data on property appreciation, rental income trends, and market stability. Tools like Zillow, Realtor.com, and local real estate websites can provide valuable insights.

Choosing a market involves balancing risk and potential return. Thorough research and a clear understanding of your investment goals will help you make a more informed decision. I am an experienced loan officer and I have multiple investment properties myself. Glad you are looking into real estate investing as, in my opinion, it is one of the best ways to build generational wealth. Please feel free to DM me if you have any other questions!

Hey Sahara,

Given your situation, there are a few immediate actions you can take:

Continue Negotiating with PennyMac: Request an urgent escalation of your case. Explain your medical and family situation and ask if they can reconsider the payoff amount or provide any temporary assistance or delay in foreclosure to facilitate the sale. Persistence in reaching a supervisor or someone with decision-making authority can sometimes yield better results.

Contact HUD and Explore Options: Immediately follow up with the HUD counseling representative. Explain the urgency and seek advice on any potential waivers or deferrals for the partial claim. HUD might have programs or options for individuals facing pre-foreclosure due to COVID-19 related hardships.

Communicate with Your Buyer: Discuss the situation with your buyer transparently. See if they might be willing to increase their offer slightly or cover some closing costs. This might be a long shot, but open communication can sometimes lead to unexpected solutions.

While these steps may not guarantee a resolution, they could help you find a path that avoids foreclosure and allows you to relocate your family. I am a loan officer so I could be able to help you navigate this. Please contact me if you need further assistance or if you just want to chat. Feel free to DM me at any time. 

Hello, Elijah Householder, I believe I can answer your question.

Using rental income from a room in the house to qualify for a mortgage can be challenging, especially if this is your first home purchase. Here are the key points:

Lender Policies: Most lenders require proof of stable rental income, typically shown through previous tax returns or a history of rental payments. Since you're purchasing your first home, you likely don't have this rental history.

Lease Agreement: While a signed lease agreement is a positive step, it might not be sufficient on its own for a lender to consider the rental income in your mortgage application. Lenders usually look for established rental income history rather than future projections.

Alternative Documentation: Some lenders may consider future rental income if you have a solid lease agreement and other supporting documentation, such as a detailed rental market analysis. However, this is less common and highly lender-dependent.

Using income from an unpermitted ADU is typically not allowed by lenders for qualifying purposes. However, here are some considerations:

Permitting: Unpermitted structures are often a red flag for lenders because they may not meet local building codes or safety standards. The income from such units is generally not considered reliable.

Occupying the ADU: While you could theoretically occupy the unpermitted ADU and rent out the main house, lenders still might not recognize this arrangement for qualifying purposes due to the unpermitted status of the ADU.

Permitting the ADU: If possible, consider working to get the ADU permitted. This process can be time-consuming and potentially costly but may significantly enhance your ability to use the rental income for mortgage qualification in the future.

Hi, Nicholas Nocella, I would love to chat and relay ideas off of one another as you sound knowledgeable in both real estate and sales. I think what you're doing with your plan for your future is very smart and hope to contribute to your goals. Please contact me below, I hope to hear from you soon.

https://app.wavecnct.com/profile/ty.coutts.2mod

Hello, John Mason, yes, a second home can be operated by a management firm that has control over occupancy. Many property owners choose to hire management firms to handle the logistics of renting out their properties, especially if they do not live nearby or prefer not to manage the rental process themselves.

Here's how it can work:

Hire a Property Management Firm: You can contract a reputable property management firm that specializes in managing rental properties. They will handle all aspects of renting out your second home.

Long-Term Rentals (LTR): The management firm can find long-term tenants for your property, screen potential renters, handle lease agreements, and manage any issues that arise during the tenancy.

Seasonal or Short-Term Rentals: If you prefer to rent out your property on a seasonal or short-term basis, the management firm can handle marketing, bookings, check-ins, check-outs, and cleaning between guests. They can also manage the listing on various vacation rental platforms.

Control Over Occupancy: The management firm will operate within the guidelines you set regarding the rental periods and occupancy. You can specify blackout dates when the property is not available for rent if you wish to use it personally during certain times of the year.

Legal and Regulatory Compliance: The management firm will ensure that the property complies with local laws and regulations concerning rental properties, including obtaining any necessary permits and adhering to zoning laws.

Maintenance and Repairs: Property management firms often take care of routine maintenance and emergency repairs, ensuring the property is well-maintained and ready for tenants or guests.

This arrangement allows you to enjoy your second home for part of the year and generate rental income when you're not using it, with minimal effort on your part.

It may be helpful to fill out the app, but give me a call anytime today, and I will answer any questions you have, or DM me your number and I will call you when I can. 

Hi Tim,

Here’s how you can make the most out of CoStar Premium to track future development planning:

Market Reports: Utilize CoStar’s comprehensive market reports which cover various aspects of real estate markets including upcoming projects, new developments, and market trends. These reports can give you an edge by highlighting areas with significant planned developments.

Property Analytics: CoStar provides detailed analytics on properties and their surrounding areas. Look for properties with recent transactions or those under construction to identify potential hot spots for future development.

Search Filters: Use the advanced search filters to find properties and development projects. You can filter by type, size, location, and development stage to pinpoint areas with upcoming projects.

News and Research: CoStar offers a news section with articles on recent and upcoming developments. Regularly check this section to stay updated on new projects and market insights.

Maps and Overlays: The mapping feature in CoStar allows you to visualize current and planned developments. Use overlays to view zoning changes, permits, and demographic trends that could signal future growth areas.

Alerts and Notifications: Set up alerts and notifications for new listings or changes in specific areas of interest. This ensures you get real-time updates on any new developments or planning activities.

Network and Collaboration: CoStar enables networking with other real estate professionals. Use this feature to connect with developers, agents, and investors who might have insider knowledge about upcoming projects.

Data Export: Export data and reports to conduct further analysis or share with your team. This can help you make informed decisions based on the latest market intelligence.

Feel free to reach out if you need further assistance or want to discuss more ways to utilize CoStar Premium effectively. Hope this helps!

Hi Ashwin,

It sounds promising that these are brand new homes, which can be very appealing to renters. Here’s how you can evaluate the investment potential in this area and ensure it aligns with your goals:

Local Market Research: Since these are new homes and there isn’t much inventory for 3-bedroom, 2-bathroom properties, you could benefit from a high demand and low supply situation. However, it’s essential to research the rental market trends in the area thoroughly. Websites like Zillow, Rent.com, and Realtor.com can provide insights into current rental rates for similar properties. Also, consider reaching out to local property management companies for their input on rental demand and market conditions.

Comparative Market Analysis (CMA): Your agent's assertion about good rental comps should be backed by a Comparative Market Analysis. Ask your agent to provide a detailed CMA that includes recent rental prices for similar properties in the area. This will give you a clearer picture of what you can expect in terms of rental income.

Neighborhood Appeal: Evaluate the neighborhood's appeal by considering factors such as proximity to schools, parks, shopping centers, and public transportation. Additionally, check crime rates and the overall safety of the area, as these are crucial factors that tenants consider when choosing a rental home.

Financial Analysis: Perform a detailed financial analysis to ensure the investment is viable. Calculate your expected rental income and subtract operating expenses such as property taxes, insurance, maintenance, and property management fees. Ensure that the net operating income (NOI) meets your investment goals.

Future Developments: Investigate any future developments or infrastructure projects planned for the area, as these can significantly impact property values and rental demand.

Financing: If you are planning on taking out a loan to purchase a property in this area it is imperative to make sure you are getting terms that align with your investment objectives. We can discuss your financing options to ensure you’re getting the best terms for your investment. I can help you explore various loan products that suit your needs and maximize your returns.

Please feel free to reach out to set up a time to discuss this further.