Told to scrap investing

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Told to scrap investing

Rich Thoms
Real Estate Investor · West Haven, Connecticut (CT) · Member since 2008 · 35 posts · 3 votes

just checking others with experience here in CT. i am trying to put together my team to get me going toward my first purchase and stumbled with the first member... the agent. in speaking to them (known the person a long time) they warned in the strongest of terms to not do anything in CT for at least another year as things are looking grim (jobs, people leaving, etc.). the person also went on about the bottom not being reached here while other states are flourishing. does this seem to jibe with what you guys are seeing or should i look for another agent to help me out?

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Chris Martin
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
9y

Regarding "...they warned in the strongest of terms to not do anything in CT for at least another year as things are looking grim (jobs, people leaving, etc.)." What I would do, and people that know how I post, is ask for the facts behind their conclusion. I heard a similar type comment from a 'reasonable' person in NC. I basically challenged their conclusion. Although they were irritated that I inquired for their 'sources', I did get enough detail to explore on my own. Turns out, for their county, they weren't too far off. I learned a lot and found out I didn't want to be in that particular area of NC.

So, listen and probe. You don't have to agree, but you should get the details so you can make an informed decision.

My 2 cents.

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  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    9y

    @Rich Thoms,

    That is not someone you want on your team. They are too uneducated re: REI. Too negative, also, and narrow-minded: not looking at the big picture.

    I would keep looking, myself ...

    2Reply
  • James Caruso
    Real Estate Investor · Middle Island, NY · Member since 2016 · 147 posts · 68 votes
    9y

    Time to find another agent :)

    0Reply
  • Rich Thoms
    OP
    Real Estate Investor · West Haven, Connecticut (CT) · Member since 2008 · 35 posts · 3 votes
    9y

    thats what I was thinking too but wanted to see what others thought. says he lost half a million when he was in his mid 30s because he didnt get the advice he was giving me now.

    0Reply
  • Chris Martin
    Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
    9y

    Regarding "...they warned in the strongest of terms to not do anything in CT for at least another year as things are looking grim (jobs, people leaving, etc.)." What I would do, and people that know how I post, is ask for the facts behind their conclusion. I heard a similar type comment from a 'reasonable' person in NC. I basically challenged their conclusion. Although they were irritated that I inquired for their 'sources', I did get enough detail to explore on my own. Turns out, for their county, they weren't too far off. I learned a lot and found out I didn't want to be in that particular area of NC.

    So, listen and probe. You don't have to agree, but you should get the details so you can make an informed decision.

    My 2 cents.

    6Reply
  • Steve Kontos
    Investor · Great Neck, NY · Member since 2016 · 679 posts · 467 votes
    9y

    @Rich Thoms

    The only advice worth wild is to listen to those that have succeeded at whatever it is you ultimately want to do.  I always surround myself around the type of people who are movers and shakers, not the ones that just sit on the sidelines waiting.  

    1Reply
  • Brian H.
    Carolina · Member since 2017 · 519 posts · 222 votes
    9y

    @Rich Thoms While I am very new to all of this I feel like an agent that isn't seeking ways to help you find properties that could work for you both does not understand REI and is just going to be more of a pesimistic agent in the long run anyways. Red flag to me.

    0Reply
  • Rich Thoms
    OP
    Real Estate Investor · West Haven, Connecticut (CT) · Member since 2008 · 35 posts · 3 votes
    9y

    thanks for the feedback on this topic. im going to look for other agents in my area and see what I get. i really want to get going as i have put this off for years now

    0Reply
  • Matt Z.
    New Haven, CT · Member since 2016 · 23 posts · 8 votes
    9y

    Hi Rich,

    I think the old saying "all real estate is local" is true here, and applies to CT in a massive way.

    There are both positive & negative factors that should be kept in mind when investing here (that agent is not completely incorrect, but is speaking too broadly), and you need to truly understand your local area and your goals to make the best decision.  Don't rely on any agent.

    I find CT is interesting because the Real Estate picture can differ completely in the same city, block-by-block.  Or even Single Family vs. Multi Family on the same street!  Nevermind massive swings on a town-by-town basis.  Someone above mentioned ruling out a particular NC County - in CT, each (tiny!) county has hundreds or thousands of different micro-situations when it comes to real estate.

    I know my little niche very well.  There are other markets in the state that I also think would fit my strategy, and others that I absolutely will not touch.  However, there are successful investors even in the state's most-struggling areas.  Strategy & experience.

    5Reply
  • Brad Ter Beek
    Investor · Mystic, CT · Member since 2016 · 26 posts · 6 votes
    9y

    Matt's right.  

    When I began looking for an agent in SE CT it was immediately clear that some of the agents were excited and positive about the area we're living in.  You want to work with someone who advocates the area and believes in what you're doing.  The agent you're describing will be constantly bridling you and holding you back.  A voice of reason is always great to have, but not to someone who'll so seriously discourage you from ever getting started.  Many investors across the state of CT are having success....today!

    0Reply
  • Rich Thoms
    OP
    Real Estate Investor · West Haven, Connecticut (CT) · Member since 2008 · 35 posts · 3 votes
    9y

    pretty much thrown in the towel on local CT agents. contacted several of them and have experienced various levels of frustration trying to  line one up to help me find properties. Im probably going to start with a so called "TurnKey" to get things going

    0Reply
  • JD MartinBusiness Member
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    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    9y

    Anywhere that both people and capital congregate, there are opportunities. The trick is recognizing and exploiting those opportunities. My first question to him would be "How do you manage to keep working in real estate if there's no activity?"

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    3Reply
  • Armando Angulo
    investor · modesto, CA · Member since 2015 · 4 posts · 1 vote
    9y

    Rich what are you looking for in your potential investments is what the question should be. If your looking for equity and appreciation then that's tough to find unless you have cash and are looking at auctions also short sales. What I'm looking for now is strictly cash flow and not 2 couple hundred but 1000-1500 a month so if something happens and you have to lower rents it won't be a problem. Good investments are still out there you just have to look harder. Personally I'd rather have a agent that's cautious in the end your the one making the final decision 

    0Reply
  • Jason Piccirillo
    Contractor · Cheshire, CT · Member since 2017 · 14 posts · 3 votes
    9y
    @Rich Thoms rich I have a good guy im working with. There is mony to be made in CT.
    0Reply
  • Rich Thoms
    OP
    Real Estate Investor · West Haven, Connecticut (CT) · Member since 2008 · 35 posts · 3 votes
    9y

    started looking at the standard turnkey guys (norada, memephis invest, morris invest) while waiting to see if i could find someone good in CT. 

    Im a dividend (buy and hold) stock guy but the market is out of control now.  I am now  looking to do the same in real estate (acquire, almost never sell, and simply buy cashflow)

    1Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    9y

    May as well go TK if you're just planning to buy retail with an agent on the MLS anyway.

    At least then you can buy anywhere so they say.

    14 yrs and never used an agent once. Not having one may prove a blessing. You'll learn more or realise RE isn't for you. Good luck either way!

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Steve Vaughan  never used an agent  you just crushed me  !!!

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  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    9y
    Originally posted by @Jay Hinrichs:

    @Steve Vaughan  never used an agent  you just crushed me  !!!

     LOL. I just bet you are the type to cart folks around on Saturdays, Jay.

    Nope, my first 3 offers on stale properties were all shopped by the LAs when I first moved here. All were from the big 3 agencies in my little area so I decided to go solo always.  Wish it were different. I could have done much better than I did I bet with a quality BA on my side.

    I did list a house for the first time if that makes ya feel any better, Jay ;)

    1Reply
  • Mark Holencik
    Investor · Coplay, PA · Member since 2015 · 404 posts · 315 votes
    9y
    Originally posted by @Rich Thoms:

    pretty much thrown in the towel on local CT agents. contacted several of them and have experienced various levels of frustration trying to  line one up to help me find properties. Im probably going to start with a so called "TurnKey" to get things going

     Find the agent in your area that sold the most properties last year. They know the market and make things happen. Even if they can not help you, they know who will.

    1Reply
  • Rich Thoms
    OP
    Real Estate Investor · West Haven, Connecticut (CT) · Member since 2008 · 35 posts · 3 votes
    9y

    Still trying to locate a good one. I think I am just drawing some short straws at the moment...

    0Reply
  • David Faulkner
    Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
    9y

    Hang on guys, before y'all go saying find a new agent and get that guy off your team, let's take a step back and think this through ... this is a RE agent, and sounds like a long time friend, telling the OP to NOT buy anything for a year at least ... the agent has negative incentive for giving this advice, so I'd say it is safe to say that it is sincere and not biased by financial incentive. Now, the agent may still be wrong or right, but I would say hear the guy out and dig down into WHY he thinks that now is not a good time to buy, and then see if you agree or disagree with his assessment and if there is a way that you can still buy and mitigate that risk, or even better yet craft a strategy to profit from it. Even if you ultimately disagree with him, it could still be a great analysis and critical thinking exercise for you and that doesn't necessarily mean you should kick the guy off your team (or not). What you definitely do NOT want to do is get into the habit of only keeping people around on your team that will always tell you only what you want to hear ... that is a sure fire road to financial ruin IMO.

    5Reply
  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    9y

    @David Faulkner,

    I understand where you're coming from. So, I went back and re-read the OP.

    As @Rich Thoms is portraying him(?), the agent seems to not really understand his own market, especially since he's talking about a "bottom". We're in a housing shortage now and even those negatives he cites are not enough to seriously harm the market, based on experience here in IL ("the sky is falling" here with regard to people leaving, etc. - I've yet to see any ghost towns in IL - yet!).

    Best to find a better team member, while keeping this relationship intact if the OP feels he should. The guy may have his value. For the OP's purpose, however, he's not the right guy, IMHO. 

    0Reply
  • Ben Leybovich
    Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes
    9y

    There are a couple of red flags here. For one thing, the real estate agent is not warning you about rents, values, cap rates, or any other real estate investment-specific metric. I understand the desire to discount what an agent's opinion on those, because, well - this is an agent, not an investor. However, considering that this person is talking to you about market-wide economic characteristics, I feel that and experienced agent would have good perspective on that. Are people coming in for jobs? Are they coming in for retirement? Are houses moving fast, slow, or not at all..? Is population growing? Are employers coming in or leaving? An agent would know these things, and if you're not stupid, I would listen to the agent carefully, and ignore commentary on this thread telling you to find another agent. Do you see my point?

    And then there's this - if the agent is right, and your market is indeed weak, then I would feel much trepidation buying there. At this juncture in the cycle, if your market is still bottomed, it's not a cyclical bottom - it is death spiral.

    I think you need to buy the agent dinner, and ask questions for about two hours. And listen...

    5Reply
  • Rich Thoms
    OP
    Real Estate Investor · West Haven, Connecticut (CT) · Member since 2008 · 35 posts · 3 votes
    9y

    Thank you for this. CT is largely on the decline as it is very expensive (super high taxes / cost of living) and business unfriendly. people are leaving in droves while the state government keeps making it difficult for those still here.

    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    9y
    Originally posted by @Rich Thoms:

    just checking others with experience here in CT. i am trying to put together my team to get me going toward my first purchase and stumbled with the first member... the agent. in speaking to them (known the person a long time) they warned in the strongest of terms to not do anything in CT for at least another year as things are looking grim (jobs, people leaving, etc.). the person also went on about the bottom not being reached here while other states are flourishing. does this seem to jibe with what you guys are seeing or should i look for another agent to help me out?

     No risk, no reward. 

    When I was starting Holton-Wise almost everyone I talked to thought it was too risky. Nobody wanted to invest and thought I was crazy to quit a stable job to try and build this business. There is a reason the majority of the population works for a smaller number of individuals.

    1Reply
  • James McCard
    Investor · New Hartford, CT · Member since 2016 · 282 posts · 104 votes
    9y

    @Rich Thoms I would reach out to Rick over at Santa Realty - it won't let me tag him for some reason. I am sure he can give you some advice and if he can't help you I know he can find someone who can. 

    0Reply
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