All Forum Posts by: Doug Shapiro

Hi @James Register,

I think it's perfectly acceptable for a buyer to contact the seller directly.  There are a lot of dishonest agents out there.  

The best case is that the owner's agent never presented your friend's offer to the owner, and the owner accepts your friend's offer or negotiates a deal with your friend. This would expose a dishonest agent and make a deal that wouldn't have otherwise been possible. 

The worst case is that the owner's agent already presented your friend's offer to the owner, and the owner just gets redundant information.  No harm to anyone. 

Hi @Jake Waslaski,

I'd definitely go with porcelain plank flooring.  This is more expensive flooring, but has just about the longest lifespans out there.  Also it is water resistant (tenants may not care to clean up a water spill immediately if it is on hard wood, or leaks in general would ruin hard wood).  

Porcelain plank also looks super nice and modern. Sometimes you can't even tell it isn't hardwood.  Downside is the higher cost and that is feels cold to the touch.  For rentals it is great because it is durable, water proof, easy to clean, and looks great.   

Hi @Robert Fisher,

Just remember that the seller is just a person.  I like asking the reason why they are selling - most times the story checks out but sometimes it is strange and other times they reveal something about the property that is off.   

Agree with @Don Konipol and @Jaysen Medhurst.

Found a stat on the NAR website "FSBOs accounted for 7% of home sales in 2017. The typical FSBO home sold for $200,000 compared to $265,500 for agent-assisted home sales."

Completely understand wanting to avoid the 6% fee though.  It is just not best if you want to sell your home for the highest price.  

On a side note, an issue I've seen with sellers either trying to sell or rent their place is that they are too emotionally attached to their home.  Studies show this again and again - how owners of a home or even as insignificant as a coffee mug value it much more than it is actually worth.  The result is that your property won't sell because it is over-priced.  

Hi @Demarion Presley,

If you are unfamiliar with the Georgia real estate market, then it may be best to sign a month-to-month lease somewhere so you can search for properties and then end your lease once you purchase the OO 2-4 unit. You'll want to see the property before you buy (and the neighborhood) and to see how it looks at nighttime as well (see if it is still safe, not too loud, etc.).

As for living in the property, if you are getting a loan to purchase, then the lender will typically require you to live in the property for a certain amount of time since the OO interest rate is lower than an investor interest rate.

Thank you @Corby Goade, @Jake Walroth, @Bala A., @Sam B., @Timothy M. for the replies. I'm following up with everyone. 

Hi @Joshua D.,

That is a good question.  I don't believe there is a correct answer to your question because it depends on a lot of factors, one of which is where you are in life and what your goals are. 

A simple answer is "don't sell unless you need to". But I think you should sell if it frees up some needed cash to invest in something else (or another property) that has a higher return.  Or, if one of your properties is keeping you up at night because, for instance the condo board is inept, then selling may be best because it will at least keep you sane.  

Many investors avoid selling because of the costs associated with it.  Sometimes it is worth it, but it really depends on your goals and what you consider important in life.  

Hi @Ron Fiscus,

If I were you I would find someone else.  I'm assuming you are paying this agent a commission if a deal closes?  The commission is meant to pay for the time, effort, marketing, negotiating, etc. that your agent will do for you.  It is for the value they provide in closing a deal.  

When your agent is not communicating with you, then how are you supposed to know if they are doing any work?  Maybe they are and just haven't been letting you know.  But for a 30-unit property you should expect weekly updates as to what is going on (# of showings, # of interested parties, feedback from showings, marketing efforts, etc.).  

I'm sure it won't be difficult for you to find other agents who would happily work very hard and provide you updates to list your property.  

Hello All,

I'm considering doing a 1031 exchange and need some advice.  I own a rental property with a market value of at least 700k, and after selling would have 300k in cash.  Are there any real estate markets out there where I can invest 300k (property(s) value would have to be at least 700k) and expect to get $3,000/month in cash flow?  Also, I don't want to do any major remodeling work. 

Thanks!

Hi @Mark Scott,

I personally just use an excel sheet because it is very simple and easy to use (and it is free).  I'm all for utilizing technology, so I'm curious to see the responses from others.  

Thanks,