All Forum Posts by: Becca Summers

No you probably won't make 6 figures your first year. The average agent makes $40k according to the national association of Realtors. However I've always felt that number is skewed. Because 20% of the agents make 80% of the money so there's a lot of Agents out there doing one or two deals pulling down the top producers averages. It's possible you could join a team as a buyers agent have less expenses and a shorter learning curve to get you producing quicker.

I hit send before I finshed. We also have rules set up to help him feel more comfortable. Each property has 20% equity. Which we have done by forced appreciation with renovations and buying low. Each property we could drop rents by 25% if needed before we hit a break even spot. Enough savings to cover the mortgage for a while. It sounds like your living below your means so another thing we do is live off my husbands income and invest mine minus vacations. The last few years that has allowed us to invest 60% of our income. Your numbers rent vs purchase for Utah are pretty good. It's rare to see a 1% rule property our market is to strong. Get on the wholesalers lists there are a lot who would love a buyer in Ogden. Last thing: some of the best Realtors I know were servers once. It's not as easy job serving and putting up with those you take care of. I'm sure that will help you have the thick skin you need to be successful.

I'm very simular to your situation he is W2 I'm a Realtor but a few years removed from it. I'm the one who loves investing my hubby doesn't care to much. He does like the renovations. He won't read Rich Dad Poor Dad and will play cash flow if I make him. What we found works is when I find deals I'll run them by him and because he is more cautious if he says no we don't buy it. At first this was hard but the more deals I'd run by him the more he felt comfertable.

20% of the agents do 80% of the business. This means not all agents are equal. How are you finding your agents? Have you proven your a real buyer and worth there time? As someone mentioned to be successful and make a lot of money Realtors balance multiple clients in the buying cycle at a time. If it isn't apparent your will, able and ready to go they will spend time with others. I get multiple "investor" calls and messages a week so I need to filter who is worth my time so I'll actively look or waste of my time (hint if you want comps for wholesaling don't call me). Are you looking for an investment or personal home?

You can work with multiple agents but in the long run you should find one that fits your style and needs. Everyone knows a lot of real estate agents but not all real estate agents are the same about 20% do 80% of the business so there is a good chance some of those agents only sell one or two homes a year. Being an " investor friendly" is even less common. Many agents have no idea how to evaluate ARV or tell you monthly rental rates. Once you find the right agent commit and they will take care of you as long as you take care of them.

@Lincoln Selk depending on location that isn't a very good deal. If you are going to help them not have Realtor fees and closing costs I'd want a better deal. Your saving them a lot of stress marketing and selling. Have you had a market evaluation done on the property to know market value?

No getting your lisence won't teach you to be a better investor or how to run your numbers. The only two benefits are access to the MLS and getting commission if you buy off the MLS. However you might lose out on better deals because agents will no longer bring you deals.

Maybe I look at it differently but I make money day one once it's rented. I buy distressed properties and spend $10-$20k getting the property rent ready I consider this a cost of purchase along with down payments. I save all my cash flow for the next down payment and future repairs while I'm in acuistion mode. When running the numbers I look at the cash on cash return.

To not live in the home you have to use a conventional loan. The lowest non owner occupant loan I've seen is 10% down payment. Most of the time you'll need 20-25%. FHA has mortgage insurance if you don't put 20% down.

@Heather O. then I'd say no to refunding the prorated rent since he choose to leave when he did. If he didn't pay rent the last month that is yours to keep as well. It sounds like he knows he is a pain and wants to push you around. I don't blame you for wanting to move on and get him out of your life these renters cause more stress.

What I meant by asking if you got a deal on the house I mean did the seller sell for less than they could have just to get rid of the tenant? If so that might be some of the compensation you get for dealing with the problem renter.