Week 2/Researching Markets,Finding an agent

8 Replies

Hello everybody,

I just finished my first week in the 90 day journal of intention and I made some good progress towards my real estate goals.

Goal 1. Find a real estate market

This task was made a lot easier by referencing the spreadsheet that @JonathanSchwartz created which provides a great analysis of a towns growth and development. I also analyzed each city on the list in terms of vacancy rate, price to rent ratio and a median home value that was within my price range. I settled on three different markets that I will dive into researching more thoroughly this week and bring it down to just one. Once I'm focused in on one market I'll start looking for a good real estate agent in that area and hopefully start getting some leads coming in to analyze.

Does this seem like a good progression towards my ultimate goal of buying a property in 90 days? Any tips or tricks on finding a high performing agent?

The one thing I had trouble with this past week was finding time to work on my real estate knowledge. I usually listen to 1 or 2 podcasts a day at work but I need to find more time after work to read/research. To make more time for myself I'm going to plan on doing nothing after work two days of the week and dedicating that time solely to real estate. We'll see how this week goes.

Thanks for reading,

Jonny

Instead of Realtor, I would start with a good and reputable property management company first. A good PM company will have realtors who can help you find properties. You might want to not only do research on them online, but also might want to talk with their clients..  Its very vital to have a good PM.. They can make or break your investment. Realtor's job is only to get you a property.. PM is on going relationship.. Bad PM can be very costly. 

@Jonathan Lubenko That's good advice from @Chinmay J. - property managers can really help you understand your local market. 

But to answer your question - you're making minimal progress towards your goal of buying a property in the next 90 days. Select a market - this shouldn't take more than a couple hours - and GO!

There are deals in every market. Start marketing every day, week or month for motivated sellers and tell everyone you know what you're looking for. That will get you a deal in 90 days. 

The only thing you'll have to remember when it really sucks during the next few months, is your "why". It will be difficult but as long as you remember why you're doing it, you'll be able to push through. 

Best of luck!

@Cameron Tope @Chinmay J.

Thank you guys for the advice this is exactly what I was looking for. I'll kick it into overdrive and take a quicker approach.

Originally posted by @Jonathan Lubenko :

@Cameron Tope @Chinmay J.

Thank you guys for the advice this is exactly what I was looking for. I'll kick it into overdrive and take a quicker approach.

Jonathan is right.. Don't do analysis like you are doing PhD in Real Estate. Successful investors don't get into analysis paralysis.  You are 3 hrs from Reno, NV assuming you are recalling from Fiddletown, CA.  Have you considered Reno market? 

Updated about 1 month ago

Not recalling.. *really from* Gawd.. This new format is not MacBook friendly.

Updated about 1 month ago

Not recalling.. *really from* Gawd.. This new format is not MacBook friendly.

@Chinmay J.

The city of Reno is a very appealing market and it would be nice to invest a little closer to home but it's just a little bit out of my price range unfortunately. Hopefully after I've built up my financial position from a few years of good investing I can start looking to invest closer to home. 

@Jonathan Lubenko I echo what others have said, and if I were in your shoes I would most definitely focus in on finding a good PM company. Another thing to think about though, is that if your realtor is connected with the PM company, you will not have anyone to keep the PM accountable. I would try to find good folks to work with who are not connected in any way so that you can ask the realtor to keep the PM accountable and also so you can have the PM keep the realtor accountable (make sure your property is in a good location, good tenant quality, etc). 

Originally posted by @John Warren :

@Jonathan Lubenko I echo what others have said, and if I were in your shoes I would most definitely focus in on finding a good PM company. Another thing to think about though, is that if your realtor is connected with the PM company, you will not have anyone to keep the PM accountable. I would try to find good folks to work with who are not connected in any way so that you can ask the realtor to keep the PM accountable and also so you can have the PM keep the realtor accountable (make sure your property is in a good location, good tenant quality, etc). 

How does a good realtor keep PM accountable if he screws over the client down the road?  The most he can do is give the client some references of another PM company, and hope that they won't screw him up. The realtor is not going to fight with the PM on his behalf once the deal is closed.. 

Furthermore, a good PM has the pulse on the rental market better than realtor. A lot of successful realtors in low rent areas, don't even do rental work. 

 

The realtor can easily be an outside set of eyes to keep an eye on things for a client. It is an ongoing relationship with most investor friendly agents. A good agent and a good PM will probably have the same feel for the market in reality. Of course, a bad PM or a bad agent will know less about the market and vice a versa. 

I just fired a PM that had far less knowledge than me about Berwyn where my town is located. He wanted to rent out my 2 bedroom apartment for $975 when the market is over $1200! No skin off his nose if he gets the place rented out fast. He gets paid either way so who cares!

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