"For Sale" Sign questions for a newbie!

"For Sale" Sign questions for a newbie!

Insurance Analyst · New York, NY · Member since 2017 · 31 posts · 7 votes

Hello everyone!

My name is Joba and I am a current insurance analyst for a mortgage firm in Manhattan looking to start my investments within RE. I'm completely new to the field outside of my daily job and consider myself a noob, but at the same time very much eager to land my first deal transaction. After many networking events, seminars, online courses, etc I do believe the time is now to start. It is my wish to start with a small buy and flip project and then move on from there, where I eventually build on buy and hold properties. 

Walking around my suburban-feel neighborhood in queens (B market), I have come across one or two properties with "For Sale" signs that I see as potential buys. They are being sold through real estate agents so I am getting ready to call but would like suggestions on how I should go about those conversations. What exactly should I ask with my initial call? What should I be looking for to get the best deal possible? Should I find a more experienced partner to help with the transactions? My plan is to use a hard money lender. Does that effect anything with properties that have for sale signs?

Just some questions that I would love if someone could guide me through so that I know I am doing things the correct way. Again as mentioned before, if partnering with an experienced investor sounds like the better option please do not be afraid to contact me!

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Residential Real Estate Broker · North Aurora, IL · Member since 2017 · 23 posts · 3 votes
9y

Being a licensed real estate agent there is really nothing initially that we can do prior to seeing the home that you can't do online.  Agents can provide you with a detailed market analysis by simply putting the criteria in a program and then generating a report, but you can also do that yourself.  You, being local to the area, will have a good feel of what the homes are selling for and what they should be valued at.  I suggest you pick a brokerage that has a good reputation and call it.  When you call it ask for the best agent.  They will be more than happy to help you or will point you in the right direction to an agent that handles investors.  The negotiation process on the agent is where we make the money (I suggest calling another agent other than the listing agent of the property that you are interested in,...dual agency can be tricky).  Good luck!!

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  • Residential Real Estate Broker · North Aurora, IL · Member since 2017 · 23 posts · 3 votes
    9y

    Being a licensed real estate agent there is really nothing initially that we can do prior to seeing the home that you can't do online.  Agents can provide you with a detailed market analysis by simply putting the criteria in a program and then generating a report, but you can also do that yourself.  You, being local to the area, will have a good feel of what the homes are selling for and what they should be valued at.  I suggest you pick a brokerage that has a good reputation and call it.  When you call it ask for the best agent.  They will be more than happy to help you or will point you in the right direction to an agent that handles investors.  The negotiation process on the agent is where we make the money (I suggest calling another agent other than the listing agent of the property that you are interested in,...dual agency can be tricky).  Good luck!!

  • Investor · Socal · Member since 2015 · 222 posts · 34 votes
    9y

    Some 3%-6% of the purchase price is going towards commissions  so I'd expect a rebate out of that if I was the buyer and found the home pretty much on my own such as searching on Zillow or Redfin. 

  • Lender · Stony Brook, NY · Member since 2017 · 31 posts · 22 votes
    9y
    Juan Barreneche
  • Insurance Analyst · New York, NY · Member since 2017 · 31 posts · 7 votes
    9y

    Thank you for the feedback gentleman! @Steve Peterson @Neil G. I will surely give an update on my venture.

  • Insurance Analyst · New York, NY · Member since 2017 · 31 posts · 7 votes
    9y

    Hello @Steve Peterson, following up on my venture. Quick question...you mentioned "I suggest you pick a brokerage that has a good reputation"

    As an amateur, what are some signs that would suggest I am dealing with a broker with a good reputation and service?

  • Insurance Analyst · New York, NY · Member since 2017 · 31 posts · 7 votes
    9y
  • Residential Real Estate Broker · North Aurora, IL · Member since 2017 · 23 posts · 3 votes
    9y

    I would start by the looking at the big name real estate offices (ReMAx, Coldwell Banker, Century 21).  Typically their website will have the agents and bios for each of them.  Choose a few that you think you could work with and then start looking into reviews on-line other than their companies website (very biased).  I hope that this helps, good luck!

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