All Forum Posts by: Cameron Tope
Cameron Tope has started 14 posts and replied 1752 times.
Post: Switching Property manager's mid lease?
- Property Manager
- Katy, TX
- Posts 1,807
- Votes 1,392
Hey Davis,
Just as @Nathan Gesner mentioned - you do not need to sign a new lease and be sure to thoroughly communicate about any changes to the processes.
Post: Real Estate Agent Commission
- Property Manager
- Katy, TX
- Posts 1,807
- Votes 1,392
Originally posted by @Preston C.:
@Cameron Tope
I do think you're right about commissions coming down, similar to other industries. If it costs agents less now to sell and do business, prices should come down in my opinion. You don't really have to spend much, if anything at all to get listings exposure anymore with everything online and mostly free.
I don't offer subpar work for lower end houses or lots, so I definitely don't need to for offering a lower commission on the higher end listings.
It's just so odd to me that agents think commissions need to be flat %, and not based on the amount of work. It's just as easy to install a light bulb in a 50k house as it is a 500k house. But in the case of selling the house, the 500k house is typically easier to sell.
Exactly! I 100% agree!
Post: Real Estate Agent Commission
- Property Manager
- Katy, TX
- Posts 1,807
- Votes 1,392
Originally posted by @Marcus Auerbach:
The question is are your clients paying for a service or for results?
If you just want a service to take photos and list on MLS you can find a flat fee service in your area. You will still offer 3% to the buyers agent - you'll shoot yourself in the foot if you cut that. It incentivices agents to stay clear of your listing and if they don't the buyer has to pick up the difference. Flat fee listings are often at 4% or 5% total - of which 3% go to the buyer agent.
If you pay for results - meaning your bottom line, what you pay in commission does not matter so much. Its the outcome you are interested in. I know that I make my clients on average more money than I cost. People who hire me, do that for a reason: they pay me for my experience and for results. They are not willing to save 5k on comission (1%) and risk a 20k or 30k lower result, that could have been avoided by an experienced agent.
Agents who negotiate down their own commission typically do not fight very hard for their clients money.
Hey Marcus,
You mentioned a seller shouldn't cut the 3% commission to the buyers agent as it "incentivizes agents to stay clear of your listing".
This is the exact problem with agents and goes against the National Association of Realtors Code of Ethics to act in your clients best interest, regardless of your commission.
If you're not showing your client a property because of the commission, then your not acting as a fiduciary - which is buyers and sellers biggest fear, and why I think real estate commissions will be revised over the coming years.
Post: Property Management Companies in Houston TX
- Property Manager
- Katy, TX
- Posts 1,807
- Votes 1,392
Hey Michelle,
Are these single family homes? If so, we may be able to help.
Post: Seeking to maximize cashflow ASAP and leave W2 job
- Property Manager
- Katy, TX
- Posts 1,807
- Votes 1,392
Hey Marc,
What area do you have a competitive advantage? It's not all about the housing prices in your market. There are things like your expertise and your team that you can't replicate in other cities.
Find your competitive advantage and utilize that to reach your goals.
Post: Cash out Refi if I don’t need the money?
- Property Manager
- Katy, TX
- Posts 1,807
- Votes 1,392
Hey Jordan,
What are your goals? If it's to maximize the equity in your portfolio, then pulling cash out is a great way to increase your return on equity - just be cautious of going into negative cash flow territory.
If you want cash flow for some income, then maybe leaving the mortgage as is would be best.
Hope that helps!
Post: Property Management Basics
- Property Manager
- Katy, TX
- Posts 1,807
- Votes 1,392
Hey David,
The rent analysis will vary slightly depending on the PM as it's more of an art than a science, but they should have MLS access to pull the most recent comps to get a solid value for your rental.
Any reputable PMC will have a software used for collecting rent. We use Buildium which is usually too expensive for just a few properties.
We conduct semi-annual preventative maintenance walkthroughs where we focus on looking for water, any major issues and illegal activities. We'll handle any major issues but we'll save any repairs we can for the turnover.
When we turn the property over here are a few things we look for:
- Proper gutters, splash blocks and downspouts.
Tree and/or tree limb removal away from the house and off the roof.
Conduct an HVAC assessment.
Re-caulk any wet areas as necessary (toilet, shower, countertops, etc)
Remove garbage disposals.
Clean dryer vent line
Flush Hot water tanks - Test smoke & CO detectors
Hope that helps!
Post: Business vs Personal Loan
- Property Manager
- Katy, TX
- Posts 1,807
- Votes 1,392
Hey Rachel,
Unless you're extremely worried about protection and are going to operate the property poorly (not fix anything or without professional management), I really wouldn't mess with an LLC.
I didn't get an LLC until I had over 10 properties.
Use your personal financing (which is cheaper than commercial) then when you do want more protection, deed the properties over to LLCs.
Hope that helps!
Post: Repair price points on rental properties
- Property Manager
- Katy, TX
- Posts 1,807
- Votes 1,392
Originally posted by @David Evans:
@Cameron Tope Im making a power point for myself and the main objective is "Charting average expenses for repairs and upgrades to identify what makes sense for specific properties"
This going to help me locate common repairs that may have to be done on properties that I'm interested in buying. The cost will help me get a better idea of what a good deal looks like vs a bad one.
Once I am comfortable with the list, I would like to post it so other beginners will have a better understanding on common expenses when investing.
David,
That sounds great. But to be honest, I think your time would be better spent acquiring more properties.
Rental repairs are so sporadic and costs vary depending on location, material and labor availability, and quality.
To be honest, I don't know how much value you'll see from putting this together.
Post: Real Estate Agent Commission
- Property Manager
- Katy, TX
- Posts 1,807
- Votes 1,392
Hey Preston,
The agents of the whole want to protect the 6% "standard" commission because it's been under attack by iBuyers and other legal battles as information becomes more available for home buyers and sellers.
So what they don't want you to know is the commission is 100% negotiable. When I first started I negotiated with an agent to list my properties for 2%.
I will also cut my commission for friends and family.
The brokers don't want you doing it too often because it cuts into their pockets and is a race to the bottom.
Do what you have to do to stay competitive. 2% of a 300k house is better than 0%.
This will ruffle some feathers but I have no doubt that like broker commissions on stock portfolios, realtor commissions are going to be significantly reduced over the next 5-10 years.