Ready to Learn!

[Kirk Shelton]

Hello all! I've been browsing BP a bit and it's already apparent that I can learn a lot from the more experienced users here regarding flips, rentals, etc. Being in real estate for about a year now has taught me a lot about myself as an entrepreneur and how there are so many other ways to make money other than working a 9-5. When I was a teacher, I thought like an employee and looked forward to checks every month with no regard for getting extra income. My wife teaches now, so we still look forward to the checks, but there's such a freedom in going out and getting business for yourself! I applaud investors and agents alike that have met and surpassed their financial goals by simply keeping their ear to the ground and paying attention. Being a millennial myself, I've connected with people in my age group through real estate. I taught before, but once the opportunity came to switch careers, I chose real estate both because it was interesting and because the next step for my wife and I (currently renters) is buying a home. Since making that decision, I've talked to lots of people who just realized that they were paying an amount of money per month that equates to a full mortgage PITI payment in rental money to an apartment complex. Money that they'll never see again or gain anything from. But since I've jumped into real estate, it's been revealed that so many of my friends and associates have thought about buying a house and simply don't know the first steps. They havn't decided whether to dip their foot in the water with leasing property or to get educated and go all-in with a mortgage. Then, there's another group of friends who want to try out investing in property. They've never been landlords before, never had to chase anyone down for rent, never had any kind of passive income before. So, with that being said, my goal here is to gain a better understanding of investing as it relates to the Houston market and to eventually become an investor myself. Also, I'd like some insight on how a Realtor like myself can help an investor who only wants to pay 70% or less of the price of a single family home (most of which are on the MLS). That's a tough sell lol.

[Mario Tavares]

Hello Kirk.

It's good to hear that you have both decided to become an investor and have taken steps to educate yourself in Real Estate by becoming a Realtor.

I also find it enlightening that you have realized that there are many, many types of individuals that will always give an opinion about Real Estate investing, but have never and probably will never actually invested in Real Estate...They simply speak as experts from what they have heard on social media, news, blogs, etc.  Now, because you know of these critics you are able to listen out of respect but able to NOT let the comments alter your investing efforts.

I am an investor, Broker and Property Manager of 16 years and I've been through about five different Real Estate cycles. The down cycles when the entire country is going through financial crisis, hands down, have been the most profitable for me as an investor. However, the cycle we are in currently is not conducive to Real Estate investors, but this cycle also separates the experience investors from the hobbyists. I say that to say, I do still purchase investments off of the MLS but only after I've negotiated a Win-Win scenario for both the sellers needs and my wants. In this cycle, 80% of my investments are NOT on the MLS. So, to sell off of the MLS only to investors would make it hard to feed your family as a Realtor.

I service my RE Investors by finding the deals off of the MLS. I find 70% of my GOOD deals through a combination of Cold Calling and Direct Mail. The other 30% is Referrals, Birddogs, Bad Property Managers, Inexperienced Investors and Other. I will say that, I very seldom work with investors who do not work with me exclusively. The main reasons for this is I know exactly what my investors are looking for and I know how fast they are able to perform on each and every opportunity. Now you don't have to work with exclusive investors, but in order to not have the hobbyist waste your time you must qualify your investors in detail so you know exactly what they are looking to invest in and when (some investors you'll have to guide through the process, but that is apart of the business since you are suppose to be the expert).

Overall, as an investor and Realtor in this market cycle you are going to have to find properties off of the MLS. Why, because most of the properties on the MLS are not good investments. Therefore, don't focus on making a sell, but focus on servicing the needs of your clients and if your clients are going to be investors you will have to be able to locate properties far below market value.

Feel free to reach out to me if you would like to connect.

Enjoy life to the fullest!