All Forum Posts by: Jesse B.

I think this is a fascinating topic that opens a lot of potential for thought.  

I agree with both Bill and Richard above.  I think we will see a major shift away from the standard 6% commission we see today, mainly because with all the resources and information available today, people are realizing that selling a house yourself isn't all that complicated.  Couple that with the fact that most people seem to rate realtors somewhere between used car salesmen and lawyers, and I think you have a recipe to send people looking for an alternative.

However, as Bill mentioned, realtors have several things in their favor that stock brokers do not.  Each house is unique.  Houses are fixed, you can't up and take it with you when work transfers you halfway across the country.  From my own experience trying to sell a house while buying a new one and settling into a new job was the last thing I want to do.  Not that I believe the seller provided 6% worth of services either, but options are limited.

Technology is changing things though.  I am impressed to read about investors landlording from long distances and some of the things they are doing to make it happen.  I think at some point there will be a major shift in the way homes are sold.  Maybe it will be as simple as someone creating a service that packages up everything a person needs to do for fsbo along with technology to show homes over a distance, teams with zillow and does a good job of marketing the product?  

Interestingly enough, I find the best use of a realtor is as a buyer.  Even this has changed though, twenty years ago I relied on the realtor for every bit of information about a community.  Today you can find out most things with a little research on the internet, but that never tells the whole story.  I find it ironic that the biggest service a realtor could offer me as a home buyer (or investor) is to be straight up honest about neighborhoods, but they are limited as to what they can tell you.  Instead you have to ask the right questions and decipher the answer.  I would much rather pay for solid information as a buyer than for the work performed as a selling agent.

As with stock brokers, there are people who still use real live ones rather than discount internet brokers.  Realtors will always have a place, but I remember in the late 90's when I first heard about online brokers and the thought was foreign, today I cannot conceive using a real live brick and mortar brokerage.  I don't see how the change can happen as fast or even to the same scale for realtors, but I do believe the change is coming.

I would want to know if sober living co is going to be in existence for the next five years and if they have any ties to the sellers.

A few of those sound more like things they don't want to get dinged for when they move out.

I think you have it stated correctly, coc return helps you determine whether or not to invest as compared to other opportunities, but return on equity is to help you decide if you should stay invested.  

I tie my expectations to a solid REIT such as O which is currently yielding just under 5%, about as safe as you can get. Therefore under no circumstances would I accept a 5% coc on a property. I currently target above an 7.5% coc for a good property in a solid market. For weaker markets or lower class homes I will expect 10% to 12% depending on the property and market (all cash purchase.). But I am constantly reevaluating based on what REITs are yielding. I don't consider appreciation at all but do factor it into determining an acceptable coc return.

It really depends on your goal.  If your goal is to be financially independent it takes cash flow.  What difference does your net worth make?  I live in wyoming where there are plenty of large ranch owners with multi million dollar ranches generating little cash.  It's called land rich, cash poor.  Does nothing for me, but to each his own.

The city council that passed the law are probably apartment complex owners/developers and don't want any competition.

Thanks for the welcomes! Mark Ferguson - The Greeley market has always been appealing to me and still seems to have some reasonably priced opportunities. Although I would live to get into Loveland or Fort Collins, just always too pricey for me. I would certainly be spending more time researching the area if I were living closer, the rents and taxes seem to be pretty close to Cheyenne, not as familiar with the employment base or laws though. The weather is certainly nicer once you come off the plateau! Michelle Y. - I have been amazed at how this spring Cheyennes market changed. I still see some attractive opportunities...although mostly older places that I am afraid to deal with living away. I really hope we don't get too much of a boom as I plan on retiring in Cheyenne (someday) and have lived in other boom towns when it goes bust...slow and steady growth is all I ask! Cheers, Jesse

Hi all!

I have followed this site for a couple of years and really appreciate all of the good insides! So thanks everybody!

I currently reside in Perth, Australia but I still follow the market in Cheyenne, always looking for a good opportunity. I am primarily a buy and rent investor, I pretty much focus on newer places, being out of town. Hopefully when I return to the states I can spend time with some projects, as I used to build houses on the side. Other markets I am considering are northern colorado, Rapid city, and Sioux Falls, I just don't have a team in place to consider these seriously at this point. I mostly focus on sfh to 4plex's, but suspect there are opportunities in condos since so many people are scared of them.

I spent five years researching investment property before making the plunge...I wish I hadn't allowed myself to be talked out of it when I was younger. Today it is a form of diversification for me out of stocks. I am excited to be here and hoping I can contribute as much back as I have gotten out of this site!

Cheers!

Jesse