All Forum Posts by: Phillip Bicker

Just read the comment about you listing on your own. Glad you have been able to make it work. Just make sure you are still getting full market value - you may consider paying buyer's agent if they come with a buyer as these are usually the most qualified/motivated buyers that are willing and able to pay top dollar. In Seattle this may work - but in Denver most FSBO's actually end up leaving money on the table even with paying full commissions.

Not sure how you came up with the $70k for selling two houses - I might need to move to Seattle! Half of commission goes to buyers, half to sellers agent and then their broker usually takes a big portion of that piece as well. So on a $500k home at 3% - a listing agent's brokerage is paid about $15k and then pays out around 70% or $10.5k to the agent. Two homes would be $21k which is still good money, but a good agent will be able to get far more for your home than you would by yourself, making up for the commissions paid. 

Anyways, it sounds like you are set without an agent, so no need to go back and forth on that point - but good luck with the sale/purchase anyways!

Congrats on building the equity and being ready to capitalize on that appreciation - good luck! Feel free to PM anytime with Real Estate questions or help finding an agent in your area. 

Please let me know if you still want help finding an agent well versed in REO's.

Also, make sure you are fully aware of how commissions are paid on these REO's that may or may not be covered by you (and how much these commissions are - however don't get too hung up on the amount as a quality agent will save you far more than the commission paid by you, if any).

One last piece of advice - even a professional/quality agent would likely consider a discounted commission if you are willing to use them to both sell your current home and purchase two new properties (think volume discount). 

As you likely know, sellers typically pay the commissions so to save yourself some money, find someone who is willing to take a reduction in the sales commission by you signing a buyer's agreement for your investment properties (where the commission is then covered by the seller). 

That said, please make sure not to select an agent solely on commission as this can cost you major $$$ down the road in lost sales potential/poor negotiation/poor marketing and/or staging. 

@Jack B. That is a very valid point and important to consider. After getting your home ready to list (you should start on this now if you haven't already) I would give yourself a 45-60 day window to list, get under contract, and sell your home and then 45-60 days on the buy side to find, get under contract, and close the rentals. So if you list mid March expect a late April/early May close. Then you immediately search out your rentals and hopefully get under contract by mid May and close mid/late June. Late June still gives you a nice buffer to be able to get those tenants in during the peak summer months with any delays like you mentioned. Just make sure that whatever month you get tenants in, make the initial lease term end during the peak summer season so you can find tenants quickly.

I would disagree strongly with Trulia's claim - both that August is the best time to sell and that you would receive anywhere close to $70k more for your house. My view is much more along the lines of Zillow and I believe that to be fairly accurate. 

In my experience and based on the data I have seen (and frequently analyze), the best time to sell a home is April to June. In April and May the number of properties under contract surpass the number of properties on the market causing a major shortage and "bidding war" type of scenario on housing. Just make sure you get a well experienced agent that will be able to maximize the offers and put you in a position to get the most amount of money possible for your home. Home prices tend to slightly increase on average during the summer June-August, but some of this is due to more expensive properties being put on the market. However, most people believe this is the best time to list a home but the demand does not increase as quickly as supply during these times, so it is actually harder to sell your home in July/August. In August and September there usually starts to be too many homes left on the market as compared to the demand that tails off towards the end of summer. This is one of the major reasons I do not agree with Trulia. Also, make sure to understand if the data you are looking at is when the homes are listed or sold as there is usually a 1-2 month lag due to the time it takes to close on a home (in Colorado the average is 30-45 days unless it is a cash offer which can be much quicker). 

I read something on Inman news yesterday that showed that over 65% of homes sold in Seattle last summer went above asking price. Just make sure not to overprice your home and miss the potential buyers and you will do well!

Let me know if you want me to dig in to find a Realtor that is well versed in multiple bid situations, negotiations, and can fully maximize the amount you get out of your home. A well qualified agent will more than be worth far greater their commission!!

I have a great agent named Ginger Knox that is extremely knowledgeable and investor savvy. She personally has investments in many real estate investments from residential to storage facilities and a commercial building. She may help you to broaden your investment horizon if wished. She knows Weatherford very well. 

 Just let her know I sent you her way and she'll take heat care of you! I'll PM you her number

The ROI on your invested money could be put to much better use than $2800-3000 on a $700-800k house. You could sell and use the equity alone to buy a multiunit in cash where you are headed and make similar gross rents (or use the equity as a down payment to or invest in more properties!).

I don't see the continued appreciation continuing much longer or at least slowing down greatly, especially in the $600+ price range where new builds compete with existing homes. 

I just came across a portfolio of 9 Denver Metro Condos (across the metro from Westminster to Lakewood). The numbers are pretty enticing for the Denver market!  One 2 bed/2 bath, five 2 bed/1 bath, and three 1 bed/1 bath.

9 Condos - $1.2MM ask - Averaging $133k per unit. 

Current tenants in place renting at $950-$1,370 per unit / month for a total of $10,920/month or $131k per year. 

The listed annual expenses are $46,616 leaving $84k NOI or just over 7% cap.

So Gross $131k, Expenses $47k, NOI $84k, Cap 7%. To my knowledge, they are not willing to separate at this time.

Let me know if you have any interest - it is hard to find condos with tenants at this rate right now.

Phill Bicker

303-250-5090 or email/text me if you want to see the flyer with individual addresses, beds/baths, sq ft, and rent rates.

Listing was provided by Madison & Company Properties, LTD

@Andrew Reyes I would basically just echo what has been said here. As far as small multi-family goes in the Denver Metro, you will be hard pressed to find anything under about $140k per door. As was mentioned earlier, there are some condos that you can find that would go for around $100k, but these will also be burdened by an HOA (typically around $200/month - but can be much higher).

In Colorado Springs, you would be able to find something around $80-90k per door. 

As an agent that services both Colorado Springs and Denver metro, I advise most of my clients to look toward the Springs for better returns, strong rental demand, and much better inventory (as there are opportunities the Springs and next to nothing in Denver as far as multi-family goes). 

Good luck with your search!