All Forum Posts by: Alan F.

I think it lies in that a lot of service providers in the real estate space are incentivized(money wise) to promote thier business.

Real Estate agents are a small business, the more clients they have, the more money they make.
Property managers are a small business, the more clients they have, the more money they make.
Lenders, correct me if im wrong, are tied to some sort of bonus structure, the more loans they generate, the more money they make.

More promotion leads to more awareness which leads to more money

With all do respect I think REA's are commissioned sales people. I define small business owners as people who employ w2 employees. We pay payroll taxes and workers comp, we comply with state and federal laws regarding work place safety, PTO, vacation, labor laws et al. There's a substantial difference.

P.M.'s (at least here in CA) must comply with all of this if having w2 employee's. If they try to pay their labor as 1099 they run at great risk of violating a host of draconian labor laws such as AB5, the borello law and a litany of "misclassification" laws.

There are substantial differences in how "right to work" statstate as operate as opposed to "non right to work" states.

SBA defines a small business based on employees and revenue size. They don't mention anything about paying payroll taxes, workers comp, complying with laws, etc

Real estate agents can have a team around them where they do have employees if they have admin/support or marketing team.

Regardless, if you want to interchange small business for commissioned sales people in my post you can.

My post was mentioning that service providers in the real estate space are incentivized by their advertisements as it will increase their annual income.

Point taken, sorry for muddying the waters.

0 Votes

Quote from @V.G Jason:

Quote from @Joe S.:

My question is… Do people promote buying rentals due to some sort of personal benefit/conflict of interest?

From a birds eye view and in a perfect world people would buy a property and their tenants would pay for it. The proud property owner/Investor would make a little bit of a difference as they go alone. A good way to gain money for retirement, etc..
What most people fail to realize is that most of the turnovers at least the ones I’ve seen the house will need some repairs before a new tenant is placed. One month vacancy can eat up all the cash flow. The Property Manager will take half the first months rent if not the whole first months rent. A large ticket item could eat up the cash flow for years out.

Property managers don’t pay for problems. The owner does.

Lenders don’t pay for problems. The landlord does.

The real estate agent doesn’t pay for problems. The landlord does.

People that think they’re going to quit their day job because they bought some rentals. You Might actually need to get a night job to go with their day job just to pay for repairs etc on their rentals.

I realize there are some people that bought right number years ago in extremely good areas that’s singing the how smart they are song, but that is not the case for most of the landlords I have witnessed.

Lenders are saying rentals are great. (they’re not buying themselves.)

Many real estate agents are saying rentals are great, that are not buying themselves.

If you had a roofer come to your house and look at your roof do you think they would recommend a roof?
If you went to a surgeon, do you think they would recommend a surgery?

What are your thoughts?

You're one of my favorite people on this board. And it's not because you're a devoted Whataburger fan, but that sure helps. Let me share something with you that I am sure you know, but don't want to believe. @Dan H. can hear it, too, cause I think I read a post of his about not believing integrity is low.

You have to understand with society-- integrity is directly inverse with the money they are seeking. It's just like markets; more money is made in tragic and catastrophic events. Yet it's all a zero sum game, so think about it from winners & losers. Or as our fearless leader, DJT says, predators & victims.

Now, this is not all people and all events. It's just the most profound one's, so the outliers. And the average one's, so the mean. A healthy and wholesome percentage, for sure.

So to answer your point, yes it is a conflict of interest. Your job as the buyer, or seller, in any transactional event is take care of yourself. Either be take advantage of, or take advantage of them.

I don't know about you, but I'd rather be the suspect than the victim.

Damn VG, wish I had the gift of language like you lol.

Wholly agree, keep posting Joe, you come off as a guy looking out for others.

Nicholas L deserves a major shout out in regards to looking out for others too.

2 Votes

My question would be what position is the LP in? Hmmmm?

My years of Y Combinator meeting, pitched LP agreements etc. have helped me hone my BS meter, kitchy IG accounts n SM mean absolutely nothing.

Also 250k houses really set off my BS meter.

Shiloh you had a great opportunity to garner interest and engagement

0 Votes

Gilbert, Arizona

Quote from @Shiloh Lundahl:

@V.G Jason Wow, you don’t work partners. That’s great for you. I’m just not sure why you would give your perspective or advice about partnerships to people who do work with partners

The majority of deals that I do and have done have been with partners. I built a portfolio of 250 units (80 Single family, 30 in multifamily, a commercial building, and 100 in mobile home parks) with a partner. And various other projects and deals with other partners. I have found a ton of value in partnerships. I’m just curious why you commented on a thread about partnerships if you don’t do them. Maybe I should have stated in the original post, if you don’t like partnerships or don’t do partnerships then don’t feel the need to comment.

And yes, every post I make, whether it’s on BiggerPockets, Instagram, or my YouTube channel about real estate sells my services. See what I just did there. Smooth like butter. King of subtlety.

Not smooth, blatantly self serving. Read your own posts objectively, your blowing your own horn.

I'm not attacking you so don't get your panties in a wad.

You're selling, plain n simple. Selling is a very important service in the world, without sales people things wouldn't get sold.

Read VG's other posts, he's provided IMMENSE value on this forum with genuine information and never blowing his horn. He understands macroeconomic, business cycles etc.

Its okay for people to simply recognize when folks are selling something, so relax

5 Votes

Gilbert, Arizona

Quote from @Henry Clark:

All the bad spelling above. Must be the drugs. Doing great after right hip replacement.

Oh snap! Hip replacement is painful. I'm so sorry Henry, wishing you all the best and a speedy recovery.

I can really empathize, I've been under the knife many times.

FWIW So far my kiln dried lumber is still going down & I only by American made electrical materials from Schneider corp. I highly suspect theres more inflation to come down the pipe regardless of tariffs, only time will tell.

2 Votes

Quote from @Basit Siddiqi:

There are substantial differences in how "right to work" statstate as operate as opposed to "non right to work" states.

0 Votes

Quote from @Jay Hinrichs:

Quote from @Alan F.:

Quote from @Jay Hinrichs:

Joe I think one of the issues with rentals that need to be fed is how people have such a fixation on ROI and leverage . these issues are easily fixed by just putting more cash into them up front so your not having to feed them at the back end.. or better yet pay cash for them.

Buying in cash! Utter blasphemy, only "unsophisticated" investors buy in cash.

An experienced investor once told me "why use my cash, when I could just default on OPM"

I know its not popular thought on BP.. and of course ramp up requires it unless you inherit a ton of dough but as we age out I sure like free and clear and no debt.. just the hassle factor of having to make payments :)

Couldn't agree more! One day I'll have to meet my maker :)

0 Votes

Quote from @Jay Hinrichs:

Buying in cash! Utter blasphemy, only "unsophisticated" investors buy in cash.

An experienced investor once told me "why use my cash, when I could just default on OPM"

3 Votes

installing PSL flush beam

Some of my other favorites are undersized electrical services (particularly underground) aluminum and knob n tube rewires. Asbestos HVAC ductwork and HERS upgrades. Galv plumbing, clay flats. Sagging roofs and purlin retrofits. Coffered ceilings, low corner additions etc.

Anyone can slap lipstick on a pig, looking for high value add in high demand markets is where the $ is.

0 Votes

Quote from @Kyle Hess:

I'm building a list of tools you could have handy while touring a potential fix-and-flip.

Is there anything you would add to this list?

Flashlight
Tape measure/Laser measure
Paper/Pen/iPad
Binoculars
Receptacle tester
Level
Marble
Drone
Respirator/Face Mask/Eye Protection/Gloves
AQI tester
Water pressure gauge
Thermal camera
Endoscope camera
Knife

Good list, in addition in my truck; ohm meter, megger, magnehelic, steel ball, air compressor generator, plus stuff I'm forgetting

1 Vote

All Forum Posts by: Alan F.

Alan F. has started 14 posts and replied 946 times.

Post: Is promoting buying rentals due to a conflict of interest?

Post: Is promoting buying rentals due to a conflict of interest?

Post: New Partnership Model

Post: New Partnership Model

Post: Tariffs and commercial buildjng

Post: Is promoting buying rentals due to a conflict of interest?

Post: Is promoting buying rentals due to a conflict of interest?

Post: Is promoting buying rentals due to a conflict of interest?

Post: Planning a Home Renovation? Think Beyond Design!

Post: What tools would you bring with you when touring a potential flip?