All Forum Posts by: Patrick Connell

@Tyler H. this applies EVEN if they have a listing agent. It doesn't matter, I asked LOL. I also asked if they were to sue me, what amount of liability would the listing agent have; the answer I got was that TREC legal has not and would not provide a specific answer to that quesiton.

@Wayne Brooks that is not true, in this case. That's why I added "Also, if you're actively licensed and practicing in any way, shape, or form, you're acting as a real estate agent." If you're licensed and practicing in any way, shape, or form, you're acting as a real estate agent in all real estate transactions. It doesn't matter if it's for your personal residence or investing, TREC looks at it all the same. It's all designed to protect the general consumer population.

All:

So, I was at a CMA class today at my local Board and I was directed to a piece of the TREC Rules that would apply to ALL licensed Brokers and Salespersons who do any kind of investing.

Per TREC, whenever you make a purchase from a seller, you are required to provide them with a CMA on the property you are trying to purchase. This includes an entity that's purchasing a property, if you're the decision maker for that entity. You are not required to explain it to them or discuss it.

TREC 535.16(c):

(c) A real estate licensee is obligated to provide a broker price opinion or comparative market analysis on a property when negotiating a listing or o?ering to purchase the property for the licensee's own account as a result of contact made while acting as a real estate agent.

Now, the instructor is experienced, well-rounded, and I trust her information. They said, as usual, if nothing ever goes wrong then it's no big deal, but if a seller then comes back and sues you or reports a complaint to TREC, your CMA better be legitimate and factual. Also, if you're actively licensed and practicing in any way, shape, or form, you're acting as a real estate agent.

I had no idea of this rule and makes me want to go back and re-read the TREC Rules line by line again. I provide this simply as an FYI and hopefully to protect you in the future. I don't necessarily agree with the rule, but I wouldn't want to be the one fighting it in court one day.

Joe,

I hope you get back every penny, and then some.

Would you follow-up down the road with a cost/benefit analysis for those of us who believe it not worth it. It may very well be eye-opening :-)

Rob,

What you describe in your first post is a smart business decision, low cost and low time make it smart to try and collect on. That's why I said these types of decisions should be treated as business, take the emotion out of it.

The use of Facebook as a tool to locate a former tenant is a GREAT idea. Although, I find your comments which follow a bit tasteless and childish; i.e. "a portion of his puny paychecks were going to me right before Chirstmas..."

Investing is a business, there's no room for emotion or pleasure in others peoples pain.

Joe,

I'm jumping in a little late but this statement made me want to respond.

It's not about holding people accountable, it's about smart business decisions. I hold my kids accountable because I want them to grow up and be a certain kind of person. The people you're going after are already grown and holding them accountable, while making you feel better, isn't going to change their ways.

If you had a judgement for say $20,000 and they had assets, then it may make sense from a business standpoint. Treat it as a business decision.

Just my 2 cents, plus interest.

Very Nice!

You bet @Mike Todd

Another thing to remember is this, your Broker will only get a portion of the commissions you are paid. Meaning, they will get a portion of the commission you get when buying a house yourself; maybe a few hundred dollars, but won't get anything when you sell the house. So your profits are left largely, if not entirely intact; since you'll be the one selling it and won't pay yourself a commission.

@Bill W. without giving away your secret location, can you narrow down where in 23 this is located.

I have to tend to agree with @Brian Mathews that you get little pockets of good and bad in that particular area. @Jeff Clawson also makes a good point that anything around Mueller is pretty hot right now, but I don't know if I'd consider something closer to 290/183 still near Mueller for that purpose.

Here's a link to APD's Crime Viewer (Crime Viewer). You can input the address, distance from the address, and time frame; I usually do the last year and 1000 feet. When you get the results, you can click each category and it will tell you where on a map it happened. Look for violent crimes around the unit; I usually look for things like Agg Assault, sex crimes, family violence, burglaries, etc. This will give you a good idea of whether or not it's a good pocket or a bad pocket.

I'll second what @Bryan Hancock said.

The suburbs around Austin are exploding, try looking at Round Rock, Cedar Park, Leander, Buda, Kyle, Bastrop, etc. if you're wanting to cash flow better.

In a few years, I see Austin becoming more of a DINK (Double Income No Kids) type city; with the exception of the bigger wealthy families coming from other parts of the country. But even then, they usually rent for a year and then buy.

Oh, and Welcome!!!

@Mike Todd I have found that those companies usually have a lot of hidden fees, limitations, and charges; i.e. a limit to transaction amounts, amount of transactions, etc.

My recommendation would be to find a Broker in your area with some experience and negotiate with them about your compensation split. Remind them you require no leads, no training, no office space, etc. and offer them maybe 10-15% of your commissions. See what they come back with and go from there.

A few things to keep in mind. 1.) Regardless of what you're doing with your license, if you screw something up the Broker is still responsible for it which means risk, which means compensation for them. 2.) A knowledgeable Broker shouldn't be undervalued as they can provide you guidance on market trends, contracts, regulations, etc. And 3.) when something looks to good to be true, it usually is (100% Brokerages).

Just my opinion though.