All Forum Posts by: Kelly Asmus

I'm a full-time broker and I also work with wholesalers. The wholesalers I work with only put properties under contract that are NOT on the mls. They find the properties on their own by knocking on doors/mailers/bird dogging/etc, put them under contract and then offer the properties to agents like myself, and others, who have potential investor/flipper buyers for these properties. 

This transaction works well since the property is not advertised on the MLS and the whole situation is above board and all parties understand it. I then bring my buyer client into the deal and they purchase the property. Whatever the purchase price is that is negotiated, the commission for my services is added on top of that. All parties understand this. The buyer is getting a property that isn't on MLS, isn't advertised, isn't in a bidding war, etc. All parties are happy.

I, and most other agents, won't write low ball offers for properties on the MLS, tie them up and waste the sellers time and the listing agents' time. This is not ethical since you have no intention of really closing. It also gives me a bad reputation in the real estate community if I'm constantly sending low ball offers that won't close - eventually you will get a bad rep and other agents won't work with you - or just disregard your offers as worthless. My reputation is important.

Wholesaling can work as long as it is done ethically and all parties are privy. 

Absolutely agree on the database building. This is the CORE of your business. Everyone in your sphere needs to know you are now in real estate. The other thing I don't think mentioned yet is you must understand the state and local contracts inside and out. Understand how to do the paperwork, how to protect your clients and focus on the building blocks of your business. 

There are a ton of good markets with affordable multifamily properties. Find yourself a good real estate broker in a solid mid-west or southern market. That broker can then help you find a lender licensed in that state you are looking as well as referrals to property managers. You want to build yourself a solid team of people in whatever market you decide on - that's your ticket to success. 

Depends on the insurance carrier. Some companies deem STRs as having potentially more property damage, so do your due diligence and shop around. 

If you feel comfortable with the paperwork and know that you have your legal end covered, then proceed without a broker. If you are nervous about doing the correct paperwork and disclosures, then hire an agent. Find someone you trust. Sign a broker agreement that keeps everything confidential and proceed with the contract, disclosures and documents. If the agent went around you to the sellers direct you have cause to sue the broker because you have a contractual agreement. 

This list completely confuses me. Never heard of any of these "hotspots." I am not in agreement that these have the highest profit potential for STR. I have many clients with STRs who would absolutely disagree.

Yes, disclose it. And get yourself an exchanger right away to handle the 1031. The exchanger can answer all your questions and help you through the process. I'm licensed in OR and WA. DM me if I can help you or you need a referral to an exchanger. I have a great one in Portland. 

Our local MLS offers "seller financing" as one of the options for financing. So if that's an option for you locally, have your broker set up a search to send you all properties where seller is interested in seller carried financing. If that isn't an option, then yes you'll have to start knocking on doors, sending mailers and talking to/networking with wholesalers.

Yes - I use Troy Reichlein, CPA. He's out of Lake Oswego, licensed in Oregon. www.Reichleincpa.com.

503-653-9592

Good luck.

Also consider that smaller home you buy now could be a perfect first rental property. Secure owner occupied financing, live in it a few years and make repairs, then when you have additional funds, but something bigger and rent the first place out. Build your real estate empire slow and steady. Or buy a small multifamily now with owner occupied financing, rent the other side for income (pays a good chunk of the mortgage so you can save for another property, stay in it a few years, then buy your first single family, again with the intention to rent it in a few years. Lots of ways to meet your goals.