All Forum Posts by: Brennan Harms

This is an issue with your agent. I regrettably have been this agent and sometimes there are viable reasons someone is unavailable.

 You have to strike while the iron is hot in this market. Without a superstar realtor who has your best interests in mind, you will get beat out or lose the deal. When the time comes to find another deal, go straight to the Seller's Agent. In the case that you cannot if there is none, then you need to find someone (or likely a group of someones) you can call on anytime and will become available so you can jump on it. If your agent does not have time to show you a property that requires quick action, you are not their top priority and thus, they do not have your best interest in mind.

Bottom line, mitigate your risk of losing a deal and maximize your ability to purchase good deals when they hit by building better relationships with reliable agents. Then when the need is present to see a house quickly, you will have options and will no longer be waiting on someone else to lose the deal for you and thus, waste all of YOUR time and hard work you've put into locating this deal.

 Ricardo:

What do you look for specifically in a community, like the ones listed above, to make a decision on which property? What does your process look like?

 John:

Thank you. I think you're very correct with being conservative with your numbers to create wiggle room and unexpected or unanticipated exposure coverage.

What programs do you use to run your analysis? Do you use the BP programs, and if so, which ones specifically?

As for the concept of purchasing STRs in areas that you like to vacation in, I think personally, is an excellent idea. For example for myself, I went to college in Scottsdale and love going out to golf and spending time with friends. Therefore, if I can find short-term rentals there that have a vacant rate of 5 days a month or so, I now have free housing where I like to visit whenever I want.

Other than looking for tourism areas, what other criteria do you use to look for good STR areas? I would love to chat with you more to learn about your process if you're free.

 Remington:

I just messaged you. Lets chat. 

 Tyler:

I am open to chatting further about investment properties in your area! Feel free to reach out to me to discuss further.

 It seems that there is a large influx of high-paying companies promoting remote work for people flooding to cities such as Columbus and essentially away from coastal cities like SF, LA, and NYC. So other than looking at emerging markets through large corporate decisions and trends, how else would you identify profitable markets? I know first hand, there is plenty of money to be made in properties that are not necessarily "pretty" and aesthetic but rather serve a purpose to produce income beyond the regular operating expenses of the property.

I have been working in real estate for about five years now in Newport Beach, CA. I have worked on hundreds of deals and learned a ton at helping others acquire real estate and sell. I just purchased my first property and I am looking to expand. I have a fair amount saved for downpayment money to invest in some new properties but I am struggling to figure out where I should go and what specifically to look for.

I have identified a few things that I am looking to accomplish with these properties though:

1. Acquire title as an individual (and would prefer this);

2. Create some amount of passive income (or at least in excess of the base expenses for the properties);

3. Purchase properties as long term rental holds to build a portfolio and rented either as short term rentals (Airbnb's, etc) or annual rentals; and

4. Find properties either in emerging markets or at least stable and steadily rising appreciating markets.

If the properties are in CA I can do the transactions from A-Z myself with no problem (assuming I know where to look, which I currently do not). If they are outside CA (likely as the prices in CA are crazy) then which areas, markets, trends, etc. do people look for? What are indicators of emerging markets? How can you tell if a property would cash flow initially? I am a novice when it comes to performing a real estate investment analysis and I do not have any software, etc to run the numbers to determine if the detail is good.

Finally, what kind of properties best cash flow, appreciate the fastest, etc. Any advice, help, or connections would be greatly appreciated as I am a new member of the BiggerPockets community! FYI I am based out of Santa Monica, CA.

How does everyone choose vendors for home projects? I have a few projects I am looking to do and I do work in real estate as an agent. So I have some good contacts but they mostly work in Orange County. The projects I have are not big enough for the large developers I work with anyways.

What are some good ways to find for example:

1. Plumber;

2. Electrician;

3. Carpenter; and 

4. Handyman

It seems that there are not too many great review sites and it is mostly by word of mouth. I looked into Angie's List, etc., and found that I am now being relentlessly called by third-party agents trying to connect me with the vendors I need. The issue is I have no way of reviewing these people or knowing the quality of their work at all.  Any recommendations would be appreciated, both for how to find and also vendors if you know anyone good!

Investment Info:

Townhouse buy & hold investment.

Purchase price: $1,070,000
Cash invested: $240,000

Wonderfully updated 2 bedroom, 2 1/2 bath townhouse in prime Santa Monica. The ground floor's open floor plan lends itself to intimate gatherings or relaxing alfresco entertaining. Spacious and private backyard patio accessed by modern panoramic doors. Panoramic doors open up completely to the patio. Dark tile flooring, a wood-burning fireplace, and high ceilings. Upstairs, you'll find a generously sized master bedroom with a luxuriou en suite bathroom.

What made you interested in investing in this type of deal?

The appreciating market is close to the beach. I lived in Ocean Park and Sunset Park (and numerous other areas in LA) before purchasing this home. So I knew this was a great area that would appreciate quickly.

How did you find this deal and how did you negotiate it?

I am an agent and found it myself.

How did you finance this deal?

Conventional loan with 20% down.

How did you add value to the deal?

I have done multiple projects to increase the value of this property, within my control. Currently, I am working on getting on the board of the HOA so that I can speak to other residents and elect for a special assessment to update the exterior of the property and better update the complex. Thus, adding value to all units and modernizing the complex to compete and ride the appreciation wave of the area to the fullest extent.

What was the outcome?

In the works but going well!

Lessons learned? Challenges?

The down payment is obviously one of the largest hurdles. Thereafter I would say that qualifying for the deal (on your own) is tough. Especially for me as I am self-employed. Finally, the most important part of any real estate transaction, you have to get the deal! Working with a diligent agent and making sure all of your documents can withstand the "4-Corners Test" is essential. Everyone is friendly until they are not. Once issues arise, walls follow and the documents are scrutinized.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Myself! lol