All Forum Posts by: Chris Ayars

Ask the inspector how they do their reports and see if they can provide you a sample. I do not like using inspectors that do not have pictures with arrows pointing to the trouble spots that go along with their text. (A picture is worth a thousand words.) This speaks to what @Russell Brazil said about being thorough and making sure you understand what needs to be done.

I certainly agree with what @Bill J Fay said about the before & after, but, if the property is bad enough, you might want a contractor for the first inspection. That way you know what you are getting into. An inspector does not specialize in every area, and will often recommend a contractor inspection for specific areas. You can hire an inspector for after the work was done to see what was missed by the contractor. That way you are less likely to have surprises. 

@Melinda Francis Being a real estate agent is not as easy as it looks or as people might expect. It also tends to be costly. Some people have the personality and contacts to be able to get their license and experience success quickly. Others struggle immensely. 

When I discussed the possibility of going into real estate with someone I trust, he said that I should not expect to start earning back my investment of time and money for 6-12 months. He was right, but that is the nature of investing time and money.

As a person who has introverted tendencies, yes, being a real estate agent has helped me to get beyond my insecurities and forced me to network with people. I keep learning as I go, but I still have to step outside my comfort zone to do these things.

There is a certain level of satisfaction that comes with stepping out and doing something you are not comfortable doing and experiencing the success in doing so. I do really enjoy helping people to achieve the dream of home-ownership or seeing the relief of getting a property sold for someone who needs to move on.

One thing to keep in mind... I provide a service. I do not see myself as a salesperson (even though that is what my license says).

Whether or not you personally find it beneficial to become a real estate agent as a stepping stone to other investment, like I am trying to do, is really up to you. You need to assess what you are trying to achieve and what paths will produce the opportunities to get you there. Choose a path and follow it without looking back. Grow and change as you go.

I have several things that have been keeping me back that I am working on simultaneously.

1. Financing: I have always had a tight personal budget. Some years are better than others as you can all relate to. At one time, my only debt was my mortgage... then I moved 1000 miles and all that changed. Working that out and making sure I have good cash flow personally has to take priority, but soon I expect to talk numbers with lenders to see what is possible.

2. Knowledge: I do not come from a construction background, and I certainly lack the skill to do most of the work myself. I am learning what it takes to look at a property and evaluate what needs to be done and how that will affect the value. Which leads me to...

3. Contacts and partnerships: I need to build relationships with local investors, lenders and contractors and learn from them how the process works, who to go to for what and when as well as how I can help them reach their goals.

Since my broker has done a few flips himself, he has provided insights and will continue to do so.

I agree with @Daniel McDonald. Find an agent who believes in the value that you bring to the community and desires to partner with you in that venture. Make sure the agent has a desire to learn what they do not know about your side of the industry and is willing to work with you to make a partnership work. This could offer the best of both worlds for both of you.

For example: myself... 

I am looking for a team of flippers to buy and sell in partnership with because I hate seeing derelict houses when there are so many people who need to purchase their own home. I do not have the contracting skills to do the work myself. Nor do I presently have the capital to buy and contract out the work.

Just because I do not answer the phone immediately or get back to you right away does not mean I am not interested (though that may be the case for many others), it just means that I cannot talk right then. I may be involved with something and cannot get back to you for several hours or the next day. I take calls on Saturdays when I can, but try not to do anything Sundays. Everyone needs to set boundaries and have some down time. "A one-man 24/7" expectation is unreasonable and will eventually cause a person a multitude of problems.

I hope this helps.

@Denise Holder That really depends upon the "whole picture" of their financial situation and the, Chapter 13 verdict and their physical/emotional being. If you offered them enough to cover their mortgage and closing costs, I am sure they would feel relief. If you choose to offer less, they would still be on the hook for the rest of their mortgage and could potentially have more stress because of the lack of collateral. The result could be up to the judge either way.

*Disclaimer: I am in no way experienced with Chapter 13, this is my viewpoint only.

@Jennifer Wood I was at a property today from a lead I obtained that needed an investor to flip it pretty badly. I did not know that before the appointment, but saw the issue as soon as I stepped inside the door. The family knew it and did not expect much out of the property.

Even though they had an agent in the family, they were looking for a quick cash buyer. I contacted an investor, but within a few hours they had already accepted another cash offer.

With that said, as a REALTOR®, I need someone on my immediate contact list that can place a cash offer for a property that quickly. Someone I know who will be able to make that quick of a decision within specific price ranges. Like in the case of today, I would represent the buyer and the seller would be unrepresented.

So having a prearranged deal and a good working relationship with a real estate agent can most definitely be to your advantage. Then, you could turn around and use that same agent to help you market the property when you are ready to sell. Remember... contracts are always negotiable, but you both have people to pay and food to put on the table. It could be a win-win situation. That's what I am looking for.

You definitely need to check with the city or county about permits. For that matter, you need to check on past permits for work that has obviously been done to make sure it has been permitted. As a real estate agent, I have run into unpermitted work. It has to be permitted retroactively or torn out.

Property records should be public record. It might cost you a few dollars, but may be worth preventing a headache later.

I was in a house just today that had what was most likely an unpermitted renovation done many years ago. The cash buyer will need to find out the status...

It really depends upon the person. When I travel, I live out of a suitcase. If we are staying in the same place for more than one night, my wife will use the drawers to keep things contained.

Let me ask you this... Do hotels have dressers? How long have they been in the hospitality business?

Whatever you choose, make sure it is durable and fits the decor for the right aesthetics. I doubt if anyone will fuss if you do have dressers, but they may fuss if you do not have them. Consider your clients and think about what kind of reviews you want.

@John Seitz Congratulations on your first flip-investment property! I have always been of the opinion that the first line of defense of a home is the exterior... Roof, foundation, siding and windows. Once those are taken care of, you can work on the interior. Be sure that the plumbing and electrical are all good before replacing walls or ceilings or you could have serious trouble and expenses down the line.

Regarding finances: I have used QuickBooks Desktop version (saves a lot of money but does not get the constant updates) for five years. It works for me for two businesses simultaneously. I am pretty sure it will allow up to five total. I also use Excel a lot (for this I have MS 365).

Whatever you decide to use, if you are consistent, you will learn how it best suits you. Just because a program has a lot of bells & whistles does not mean that it is the right program for you.

Please read the article on chapter 13...https://www.uscourts.gov/services-forms/bankruptcy/bankruptc... 

This article indicates that a chapter 13 allows them to maintain possession of the property and develop a plan to pay back their debts rather than be foreclosed on. My suggestion is to give them an offer that meets their needs before someone else does.