All Forum Posts by: Andy Sabisch

Quote from @Fernan Nava:

I think a better question is, what do you expect from an agent that brings you a deal. Do you expect the agent to bring you another? If so what are you willing to do for them. In other words, do you want a relationship or just people doing things for you.

I think it goes back to my original post.  An agent that brings you pocket listings knows what you are looking for and in bringing them to you before listing, gets the full commission.  Knowing that the agent can sell the property with minimal effort (no photos, no open houses, etc.) and receives the full commission brings value to the table.  Not every pocket listing they have will be in your wheelhouse and  if the agent knows your target, they will sort through their pocket listings and bring you those that are likely to be a match.

As far as using them to sell flips, again, discuss this up front.  If you use a flat fee service you save the listing commission but the agent can sell it if they have a client that is interested in it if they understand that the listing commission factors into your budget.  

It comes down to what you bring to the agent as well as what they bring to you.  Not every pocket listing is of interest to every investor and the agent should know that.  If you have discussed the exit strategies you employ, if you are flipping you should discuss  the role the agent will play.  Your flip may become another pocket listing for the agent and the commission as such should be negotiable - they get first shot at selling the property and you get a break on the commission.

As they say, everything is negotiable.

If you have decent photos of the exterior you can get a pretty good estimate of dimensions using a known item such as a door to scale to get lengths, etc.  Google Maps has a measure function that allows you to measure exterior dimensions if you can zoo in enough.

Quote from @Carlton B.:

I agree with most of what has been said and to continue with the recommendation theme. Get recommendations from other contractors you trust. They know who they like to follow painters would know good drywallers electricians know good plumbers. They are on jobs together and know who is making there job harder or easier. Another sign of a good contractor they are booked up. If they are never working there is a reason.

I have always found that the saying "If they say they can be right over and can start right away, hang up and keep calling" often holds true as they are looking for work which in today's environment, is not usually a good sign.  The one that says they can get to your job in a few weeks is usually booked for a reason and if you build a track record with one of these they will be willing to fit you in where they might have otherwise said a few weeks

Quote from @Rhea Campbell:

Amazing comments. Thank you. I sadly missed out on this one. It was fabulous deal that got away…..:(

The problem with long distance investing like this deal was is that you are competing with other investors that have boots on the ground and can get the numbers they need to make a deal happen while the long distance deal is still in the analysis stage.  I know that there are long distance deals that work but if they require renovation and you do not have boots on the ground to actually look at the property quickly and then make an offer, you will often find yourself looking at the deal driving off with another buyer.  

If you are looking at a long distance deal, do the upfront activities like get a contractor or someone that can look at the property critically to let you know if the deal is good or not.  Then you will have the information you need quickly to pull the trigger and make an offer.

In this case, finding out what woudl be required to split a lot specifically from the county is easy but can take time which you might not have.  Getting people lined up to look at a property in advance will also get you the information you want quickly.  Hope this helps.

This list is a general list and as Tyler said, it may not apply universally across the country.  Without that caveat, it is doing new investors a disservice as they might spend money that offers little payback or in some cases, hurts the sale.

For example, the open floor plan was the rage up to the pandemic . . . and now with many working remote, they are finding that open is not the best option and are looking for office space and areas which can be closed off for privacy.  This is a change that should be assessed for your specific area so that your open concept is not an deterrent from a sale.

Similarly, the updated flooring suggestion can be dated in many areas.  Sure, getting rid of worn carpeting is a must but LVP has taken the housing market bu storm and adds value at a reasonable cost.  On the other hand, in many areas tile has gone the way of the dodo bird so again, see what your market sees as a must and avoid dated updates that can hurt the sale.

Get recommendations is the #1 thing to do . . . that is why connecting with other local investors (REIGs, BP, etc.) is critical BEFORE you take possession of the property.  Spend time nurturing a relationship before you call for the first estimate if possible because most contractors are getting slammed from new investors that want to look at 100 homes hoping to buy one.  After a while, your phone will stop ringing with callbacks from contractors.

Several of the other bullets in the original post are applicable to larger projects and asking for this for any project may turn the contractor off before even starting.  If you are having a bathroom replaced (no changes in structure), then asking for photos of past projects may be overkill.  

Not paying upfront is another critical factor that many people forget and get burned (and I am speaking from personal experience).  If you have not dealt with the contractor before and are asked for 50% or so down, keep calling and find someone else.  There are reputable ones that do not require that in advance which often means that they are floating one job to pay another and so on.

There are a number of good contractors out there and when you find one, hang on and become their steady work and they will remember that when another project comes up.

Depends on the relationship you have with the agent.  We have one that we rely heavily on when we are buying properties and she is worth her weight in gold but we have talked about flips (she has helped us with both rentals and flips) and understands that there may be some that we market ourselves even if they were pocket listings she brought to us.  We work well together but we both realize it is a business . . . she makes money on selling the pocket listing since the commission is not split and makes money on deal that we reach out to her on (on market listings).  I would definitely talk candidly with your agent BEFORE you find yourself wondering what is or is not acceptable with that agent.

As far as using a different agent, not something I would recommend but going with a flat fee listing company saves you the 3% listing commission and we have gone that route with the last few flips we sold.  But again, we were clear up front and did not wait until the sale was in play.

I would add one more thing to the list above which is a great primer for sure . . . . that is avoiding ANALYSIS PARALYSIS.

Everyone needs to be sure of what they are getting into both from an aquistion perspective as well as the exit strategies and everything in between but once you have run the numbers and had them checked by someone that you reached out to in advance or are partners with, you need to be ready and willing to pull the trigger.  Over the years we have found a deal and then either over thought it and lost it or tried to shave that last bit of fat off the bone to reach some predetermined percentage like that ol' 70% number people are still tied to and guess what, another investor took the deal and reaped the rewards.  Sometimes a 15% ROI deal is worth taking rather than holding out for 17% and losing it all.  The real takeaway is that have your tools ready and assistance on standby to check your numbers and then be ready to say yes or no and either buy the deal or move on.  Over analyzing is not always a good thing but when you are talking the money we do when buying property, better to be safe than sorry.

As Tom said, once you start with roots penetrating the line, they will continue to look for other points to access the water inside.  We had a similar condition on a property in TN and had to replace the line from the street to the house which thankfully being down south was not that deep and the cost reasonable.  Depending on the depth they need to go to replace the line and the overall length it can be considerable in terms of cost.  Have your PM / GC monitor it and jet as needed but a new line will be needed sooner than later.  Dumping root killer down the drain is a temporary solution at best and may not do anything to extend the time to replace.