All Forum Posts by: Watson Smith

Whats your budget and why did you pick ATL?

50% is just an average. In the life of the property you are going to have good/bad years.  You could have 5 great years where nothing happens followed by 2 horrible tenants, a roof replacement, refridge goes out and a large water leak that the tenant didn't report.  Once you average all years together it'll come close to 50%... But it's just a rule of thumb.

Most off the MLS - Just have to act extremely fast. If a listing hits that day and I like it... I take an extended lunch and go.

I always scan through what wholesalers send me but I've yet to see anything that blows me away in the last couple of years.

I know this post has past... But I had the same issue with Atlanta.  Took over 3 months to get the water turned on... On top of that there was an active leak on their side that didn't get fixed for the same time.  It was a disaster... Now I'm having to go through the process of an electrical inspection. The last inspector that showed up at a previous property was drunk at 8am and stumbled as he went in the house... You can't make this stuff up.  I thought Dekalb was bad... But this city is a joke.

Ask the seller to explain how they reached their purchase price.  If the response is "the agent said it was worth X amount..." then educate them on how to value an income producing property.

Walk away from this deal.  No point in investing in something that doesn't return any money.  Give them your best price - no matter how low it is - and be done with it.

I really don't know of a good alternative other than FSBO if you don't want to hire a RE agent. "Normally" it'll run for seller a total of 6% of the sales price. 3% split between the listing and buyer agent. The MLS and FMLS are for agents only and they have to pay a fee to access them.

The agent should always look out for their client but they aren't going to work for free either.  They only make money when their client buys or sales and they collect a commission.  If there's no commission to be collected I probably wouldn't show the house either.

What price range is the house?  I just sold one by owner off Zillow in 3 weeks.  If its geared towards investors I would say do it but if its for a standard buyer I'd hire an agent and pay 6-7%.

The house must be your primary residence and you must lived in it 2 out of the 5 years prior to the sale.  If not it'll probably be considered capital gains.  I'm not an accountant so you really need their advice.

You can pay a flat list fee and have it on the MLS like you stated... But I doubt any agent will show it because they won't get a commission. You might get a few calls from agents saying they have a buyer who's interested and try to work a deal with you. The listing fee only gets it on the MLS for individuals to find themselves.

I'd walk away from the deal even if they dropped the price to appraisal.  Might be helpful if you list your expected numbers.  I think that would be a better starting place.

@Ethan Atkinson - I agree with him.

- The most popular way is through direct mail.  Find the pre-foreclosure individuals and send them letters.  This isn't going to work if the house is under water though.

- Driving around and finding abandoned homes.  Looking up the tax records and calling. (Head North to Macon and I'm sure you'll find some there...)

- Knowing someone who bought a package deal and is selling off the ones they don't want.

- Doing work for landlords and letting them know you are interested in buying one of their properties.

Many ways to do it but it takes some leg work.

Have fun!