All Forum Posts by: Luka Milicevic

 Hey Sam, welcome to the community. I'm an active investor and agent in the Nashville area. I'd be happy to answer any questions you might have about the area. 

Why the next 24 months? Why not today? 

 You can talk to 10 agents and you will get 11 different answers.

Everyone does it differently. 

In your example I see nothing wrong and no red flags with this request. This is very reasonable on the part of the broker.

I personally don't do it this way. I send off market deals to my investors with no markup or representation fees attached. I just ask them to let me list deals on the back end when they do end up selling. I also require no agreement to be signed promising me back end listings. 

Everyone is different...

 I read through your thread. 

I would equate this to the efficient market hypothesis. The value of your townhome being next to section 8 housing is already priced in. 

Same way it would be if it had a train the backyard, busy highway, etc. 

It would be a different story if you were buying something that had a proposed development, train tracks, road, etc. 

Where else can you find a new townhome for 255k that close to Nashville? That price point has a lot of limitations. 

Matt Anderson

Anderson Legal PLLC

Specializes in real estate

@Brook Warren

Yes, this is the reality of the current market environment. You're talking about one of the hottest real estate markets in the country. 

You might have to change your expectations of what you consider a "good deal" 

It also depends where you are in your real estate educational journey. What I mean by that is what episode of the BP podcast have you just finished? I have excited investors call me after listening to an episode from 2018 looking for 1% rentals. I can't make that happen....It's a different universe now. 

Anyone that tells you that finding good deals in Nashville is easy is trying to sell you something. It's not easy. Most of my investor friends including myself have stopped marketing in the Nashville core for rentals. 

The only deals that make sense now are going to be STRs, new development and renovations (if you can find them).

If you're looking through deals from wholesalers they are going to be about what you will find on the MLS.

Keep looking, you will find something that will work for you. 

 This x 1000000

This is what you need to do.

If you're working with an agent they should be doing this for you.

Recently, I was in the same situation with several buyers on new construction. I called all the agents that closed deals recently with that developer. They told me what they tried to get, what they got, what they absolutely couldn't get. It gives you an idea on what the builder is willing to give out in terms of incentives and puts you in a much better negotiating stand point. 

@James Hamling

You considered moving here and didn't tell me???? Come on now....

A house in my neighborhood just went under contract. What a missed opportunity, I could have had a RE mastermind as a neighbor!!!

What you said about Nashville is all spot on. I will add a few comments on recent developments.

The city.....and more so the residents are finally waking up to the problems that we have developed with the mass, almost unchecked growth over the past 10 years. The new mayor is heavily pushing infrastructure overhaul. He was formerly on the mass transit committee and has a pretty good handle when it comes to that. The former mayor had a proposal 5 years ago that was too ambitious and too ahead of its time. It was voted down. We have another referendum vote in November that I think might have a fighting chance. 

The airport is also having a MASSIVE expansion. Complete overhaul, new terminals, dedicated bus lanes, new interstate exits/on ramps, etc. 

Let me know when you decide to make the move to Franklin :-) 

@Tim George

It's all going to depend on what you plan on building. What you're describing is very possible. 

It's a bit of a process of getting something re zoned. Cleveland Bain is an attorney that specializes in doing it so might want to look him up. I will say East Nashville might be one of the more difficult areas to do it due to resident opposition. The people there hate developers and new development even though they have benefit so much from it....

I'm not the expert in re zones so I'd consult with someone that is. The REIN facebook group will be a GREAT resource. Maybe the best place to get started actually...

@Eric Rice

If you're looking at a short term outlook I would say real estate is not the vehicle you should be looking into. The most important ingredient in real estate is time. You're better off flipping or developing property with a short term outlook. 

The economy not looking hot and trying to time the market is a fools game. Imagine in March 2020 you looked at the economy and decided to wait on the sidelines...or worse sell. The economy was shutting down (literally), SP 500 was in free fall, widespread panic. What would have happened? You just missed out on 10 years of appreciation in 2 years. 

You will never be able to time the market and trying to time the market will cost you much more than you will lose in any downtown of any kind. 

@Eric Rice

Are you sure you're talking about the right Franklin TN? That's the furthest description of Franklin that I could think of. 

I live in Franklin and it is the goal of everyone in the area to eventually move there. My wife and I constantly talk about it - Once you move here and experience it, there is no going back to your old life. 

The pros you mentioned are spot on, but I have to add a few. 

The city is incredibly clean and well maintained. Can't emphasize that enough. I bike early in the morning - 5am. The landscaping crews are already out at that time with headlamps mowing grass, mulching, trimming, etc. Sanitation department has brush pick up every week. Leaf pick up through out the fall and winter. The city has predominantly buried utility lines so there are few overhanging power lines. This doesn't seem like a big deal until you actually go somewhere else and notice how big of a deal it is. They implemented under ground utilities decades ago so even the old subdivisions built in the 90s don't have overhanging power lines. 

You're skeptical about the growth??? Have you seen what's in the pipeline? Do you know how many companies that you've heard of are headquartered in Franklin? Have you seen how many companies are moving their HQ to Franklin? 

Nashville has had a mass influx of young professionals over the last decade. They are living predominantly in the high rise apartments downtown. Where do you think they are all moving to once they have children and need more space and better schools? 

I can't recommend the place enough. 

In terms of investing here, it depends on what you are looking for. The rent to value is not great. It's mostly class A owner occupied. There are places that will yield better rent to value ratios. It just depends what you want. I had an investor a few years ago where all he cared about was being in the best school zones. So this location worked for him. 

If you want to talk more please reach out. I know the area very well.