All Forum Posts by: Lorraine Hadden

 Interesting perspective - I have always represented myself in deals in the state where I am licensed. Mainly because I'm particular about certain details in the transaction.

QUESTION for the BP community - do you represent yourself on deals where you are buying in the state where you hold your license? If not, WHY NOT?

Recently I had a conversation with a friend and real estate agent who wanted to purchase a home.

At the time, they were looking for an agent to represent their family on the transaction. I suggested that the agent represent themselves --- that suggestion started a lively discussion on the subject of self-representation on real estate deals.

Do you self-represent on real estate deals where you are the buyer/seller? If not and you are licensed in the state where the property is located - Why not self-represent?!?!?!

@Kent Fang ching

I too am in CA but do not own any investment properties here - maybe will consider AirBNB in 2025.

My choice for OOS investment includes GOLDSBORO, NC.  --  Goldsboro has a strong real estate market, Low cost of living and affordable properties. Median home values are $170K range, Median rental income $1,275, YoY home value growth 7%, YoY rent growth 7.93%, Rent/price ratio .74%, Population 117K.

I also have my eyes on Watertown, NY; Warren Robins, GA; Gulfport, MS; Knoxville, TN, Rocky Mount, NC & parts of OK.

There are plenty of options out there --- hope you find something that fits your buy box!

@Dennis Gallagher
As for the 50% Rule (where your expenses equal about 50% of your revenue) - I might argue that the flaw in the theory is you will walk away from many great wealth building opportunities just because it doesn’t meet the formula.

@Dennis Gallagher

It's my understanding that the "Income-Expense Ratio" primarily use operating expenses as the expense variable, which includes costs like utilities, property taxes, insurance, maintenance, repairs, property management fees, and trash removal, all of which are considered when calculating a property's operating expense ratio (OER).

You calculate OER by dividing the total operating expenses by the gross operating income of a property.

NOTE: A lower OER indicates a more profitable property as a larger portion of the income is retained after covering operating costs.

Hope that helps!

Where do I start in analyzing this brokerage idea --- I'm diving right in:

I'm assuming with the .6% commission structure you are going to rely on volume because .6% commission - I'm hoping that's a typo? Maybe investors/flippers who may be more seasoned and not need a full service brokerage - in either case - WOW on that .6% commission!

While dual agency is  legal in most states, dual agency is controversial and can be risky!

In California, an unlicensed professional cannot independently let a client into a home to show it; only a licensed real estate agent can conduct property showings, although an unlicensed assistant may be present to let someone in under the supervision of a licensed agent for specific purposes like inspections or repairs, but cannot discuss the property details or engage in sales activities

Paying agents hourly would drive your overhead through the roof especially if the brokerage is not closing deals!!!

When you get this up and running I would love to hear about your progress!

Entering the real estate market with $10,000 is not only possible–but it can be achieved through innovative investment avenues like FRACTIONAL Real Estate investing or investing in TAX LIENS - research these two options. 

Keep us posted on how you end up investing that initial $10K and good luck on your journey!

This EMD did not sit for months. We completed our due diligence within 10days and once the report came back, we immediately requested our deposit back. Sellers had multiple "accepted" offers and all were placed in interpleader accounts. I have all the documentation on this dispute. Not going to argue the point.

@Samantha Springs 

Here are some options to help lower the mortgage without refinancing that is worth considering:

1. ask your lender to remove the PMI, if you have one, that would help reduce the mortgage. Lenders are required to remove this charge automatically when your LTV ratio reaches 22%, but you can actually contact your lender to request they remove the charge when you reach 20% equity in your home. Home values have been rising, and you may reach this amount sooner than you think.

2. can you lower your homeowner's insurance?

3. have you considered a bi-weekly mortgage payment? This is akin to making one extra monthly payment on your mortgage each year that you may not even notice, which helps you pay your balance down even faster. Over time, this can even help you pay off your mortgage several years ahead of schedule.

4. what about asking your lender for a loan modification?

5. Leverage the equity with an HEI. Tapping into the equity you've built may be worth considering when exploring how to lower a mortgage payment. If you have sufficient equity, you may be able to leverage it to pay down your mortgage and reduce your monthly payment. Alternatively, you can use your home's wealth to pay down other expenses, thus improving your cash flow to handle your mortgage payments.

When there are "no comps" to price a listing, I can usually come up with some comparable, by taking one or more of these steps:
1. Expand your search into the surrounding neighborhood.
2. Go a little further back in time.
3. Search in another competing neighborhood.
4. Look at pending sales.
5. Look for private sales in public records or on FSBO sale sites, and/or
6. Look at expired or withdrawn listings.

There are COMPS, you just need to find them.