All Forum Posts by: Matt Joplin

I LOVE that this post is still has traction 4 months after I posted it.  Thank you to all who care to read it and reply!

To give an update, I decided to get my brokers license (title for agent in WA) and was able focus hard and secure a position at a desirable firm 6 weeks from the date I started my coursework.  Since I began 2 months ago, I have been working to actually understand the craft through on the job training.  Courses and trainings really just get you in the door, the real work and learning doesn't start until you are on your own right?...I now have first hand experience trying to market myself in an effort to get clients.  I expected it to be tough but it is tougher than I had originally thought.  I do recognize that starting out in this business you have nothing for a long time then all of a sudden growth happens exponentially if you have the skill and put forth the effort to do it right.  

I will tell you one thing, in my area if you say you're a GC (I am also licensed as a GC) people want to talk to you because they have a need or know someone who needs a good contractor.  They are in high demand.  Conversely, if you say you are a Realtor, they almost look at you with disgust and back away slowly.  A bit of an exaggeration here but there a so many Realtors around that provide no actual benefit that it is hard to get attention from someone that doesn't understand the value you can deliver.  

This true-life test might just be the answer to my question: Should I become a Realtor or a GC.  Seems to be a great deal of interest in GCs and there are so many high-end homes in the area that I know that I could make really good money servicing the Island I live on as well as the surrounding islands.  Mainland GCs just don't have an interest in coming onto the island with the work available to them closer by.  That said, there is a whole lot of money I can make too if I can establish and prove my worth as Realtor.  

As @Kyle Wells and @James Hamling basically said being a jack of all trades leaves one to be a master of none.  This I agree with.  Ultimately, I want control of what James highlighted as my number one resource TIME and being an investor in my eyes provides the best combination of time and potential to make money.  

I am trying to break into the full-time investor world which at this point, will require OPM and or a partnership with another investor. My selected vehicle of choice to do this was to become a Realtor. I am currently focusing my time analyzing my market and enjoying the perks of having MLS access as well as other tools that come along with it. There are 75 brokers that work through 5 different offices at my company and many of them are seasoned. I am hoping to network, assist, and learn from them because I think their wisdom, experience, and connections are invaluable as a Realtor or investor. There are so many investment groups in the Seattle area but few near me in my local area. Investors are out there but they are not organized so far as I have seen. Investing outside of my local area is definitely a possibility but would require further research and definitely some help from other investors to get started. I have been resistant to go elsewhere because I know that I can always jump in personally to correct any issue if my investment is within driving distance. This self-limitation I understand is restricting my growth and potential.

My vison as a Realtor is to always be searching for opportunity for myself.  If I come across a deal that pencils out I will work to buy it.  If it is close but fails my criteria and I have a buyer on my list the the house is fitting for, I will help them purchase it.  In my search if I come across someone looking to sell, and the deal doesn't work for me I have an opportunity then to potentially list the property.  Its a bit like a reverse funnel.  I search for opportunity run it through my own evaluation and then pass it along through different tiers. My GC business is legal and ready but I have it on the back burner until I get my real estate business going. 

As @Julien Jeannot suggest both are complimentary.  I would like to get both going but I don't feel able to start two new ventures at once.  

@Kyle Wells, @Julien Jeannot, @Barry Ruby Thank you for spending time to reply to my question.  

@James Hamling,Thank you again for your recommendations.  I love your analogies and I want to cut through steel and focus.  

To anyone else, thank you for taking the time to read this.  I am always interested in chatting about real estate and providing help if I can.  Additionally, if I can contribute to anyone's project or partnership I'd love to have that discussion.  

Thank you @Ran Iarovich, @Scott Mac, and @Marcela Hoag for your replies.  I appreciate the encouragement and feedback. 

@Scott Mac, thank you for the complements about making "a quirky looking house much prettier".  It is my specialty : )  Most of my projects have had aesthetic challenges that I have had to overcome.  It makes for a fun puzzle, and it helps to limit competition when making offers.  

 @James Hamling, received, re-read, and understood.  Thank you for the encouraging advice, you have me reflecting on something that has been in the back of my mind for years.  As you put it "...your sole focus is for your investing actions. So why get distracted from that?"  I would say the options I presented are in alignment with investing and that either could help drive me forward as an investor.  However, I would agree 100% with you that both options would ultimately be a time intensive distraction from my ultimate goal of being a full-time investor.  If there is a way to shortcut the process (you already gave the answer OPM) that would be the most direct route forward.  Thank you for encouraging me to stay focused on the end goal.  

@James Hamling,  Thank you for the reply and for the brutal honesty, I appreciate it.  Some of the best advice comes without filter and that delivery method results in a point that is hard to miss by the one receiving the advice.  I also like the motivation provided by a bet against me, I like to prove people wrong when they say something cannot be done or I am incapable.  I love a challenge!

I also appreciate the "none of the above" suggestion your mentioned as a path to explore outside of what I have listed.  What I want in the end is to own more real estate.  If I am a GC or a realtor I will be earning money, paying taxes on that money, and then using what is left to buy real estate.  OPM would certainly help me to scale more quickly.  My issue (and most everyone else's)  currently is deal flow and funding.  I'd love to unlock the secret to obtaining OPM but I have yet to break the code outside of private money from family and friends.  The first step is to get out in the world and this post is a step in that direction.  

Both paths I originally brought up (being a realtor or GC) were not simply to make money but to help me with deal flow and networking, the other issue I have with my investing business.  

Some added information for anyone else who might be confused is in WA state the nomenclature used is Broker (real estate agent) and Managing Broker (Owns or Supervises a Brokerage).  Based upon your response, it seems as if you thought I was trying to open my own brokerage which is not my intent.  Each of the managing brokers I have interviewed locally have great training opportunities and mentorship programs in their office. 

I would disagree that I am clueless regarding being a GC but would agree 100% that because, I have sold 2 houses ever, that I certainly am not qualified to run alone as realtor or act a managing broker.  My point was from personal experience, I would rather write contracts and show houses than be in a attic for days on end in the summer running wires or in a trench fixing a failed sewer line.  

In the greater Seattle area it is so difficult to find a GC who is not a hack / scam artist. All the good GCs have way more work than they can perform and they are booked out farther than most would want to wait. I have a degree in engineering, a BS in business, certifications (and experience) in project management and I grew up in a family that had a construction company that I worked for as a teenager through college. I am not saying that I will hit the ground ruining as a high end custom luxury home builder or that I am going to build a 500 unit commercial apartment complex. I will say though, that I could easily manage an ADU / DADU build, basement conversion, addition, kitchen remodel, bathroom remodel, etc. I got that no problem and there is enough work locally to make a decent living providing these services.

I've been working overly hard all my life taking the longest most challenging routes.  It is time for me to make myself known, ask questions, and listen to experienced people such as yourself and to start working smarter.  

If you have any more suggestions to steer me down the path of wisdom instead of the path of brute force I would be a gracious student.  

Sincerely,

Matt

Henry, thank you so much for the reply!  I have considered being a commercial broker but I have not researched it to the extent I have researched residential.  If you had the time, I would love to listen to your advice on how to approach this whenever it is convenient for you.  

Hi all,

I am at a crossroads and I am looking for a suggestive nudge in the right direction. I am a former engineer, turned vocational teacher, turned stay at home dad due to young children at home during remote schooling. The one thing that has stayed consistent career wise is my love for real estate. 

I have hustled hard the past 7 years working late nights and weekends building my humble but performing investment portfolio. Trying to keep my expenses extremally low, for each project I designed, engineered, GC'd, labored, listed, rented, and sold all by myself utilizing almost no subs. This includes, the skilled trades, plumbing, mechanical, and electrical.

During remote schooling / being a stay at home dad I discovered an addiction to my newly found freedom and decided to put in my notice at the school district and make my side hustle a full time gig. I had a project in process and dedicated my time to finishing up a major remodel, refinancing the completed project, and then finding great tenants to love an enjoy the house. 

Just as my last project was finishing, we found our dream house and moved to an area I can see myself for the rest of my life. It is the first time we have had a home. Every other house we lived in was purchased as an investment and was a stair step to the next project. 

I have spent this year (2023) recovering from the burnout I have experienced the past several years and I have been trying to be intentional with how I make my next step. 

Pictured is the last house I sold. Of the many roles I took on for this home, I enjoyed analyzing, finding, and buying the home along with analyzing, listing, showing, and selling the home. I am a licensed, insured, bonded GC but I have only utilized my services for my own projects. 

My question for anyone that has made it this far is if you had the capability to be a GC or a real estate broker which would you choose? Would you go a completely different route? Would you suggest trying to partner with someone? My short term goal is additional income but the ultimate goal is to buy more real estate. I recognize eventually I can do both but I don't think I can take on starting two business at once. 

My intention is to do something in the real estate realm that compliments my goal of buying more rentals as soon as I can. I am reluctant to return to engineering or teaching though this would be the only option that guarantees a paycheck and therefore it makes lenders happy in a shorter period of time. 

Thank you to anyone who takes the time to read this.

Matt

@Steve Vaughan, Thank you for your reply and for the recommendations.  My father was born and raised in Cashmere WA.  Wenatchee and surrounding areas have certainly been growing the past several years.  I am a fan of the east side myself but I would have trouble leaving the saltwater for too long.  

Thanks again for the reply, I am encouraged that I am pointed in the right direction now.  

Hi Everyone,

I am looking to restructure an agreement with a private lender so that I can Refi in the next 6 to 18 months and hopefully do a "rate in term" refinance instead of a cash out refinance.  

I have a private loan for $384,000 that is due August 2024 which represents a 60% ownership of an investment property.  I am the other 40% owner and will take full ownership of the property upon refinance.  We own the property together outright at present and I have a note in place with my private lender.  My private lender is on title with me and I am recognizing that this may cause issues later when it comes to refinancing in terms of excise tax and loan terms.  

Moving forward, my plan is to do a Quitclaim Deed to get them off title and then to record our agreement with Island County, WA.  I am hoping to structure our agreement in a way that a future lender can do a "rate in term" refinance to better our rate in comparison to a cash out refinance.  

I am hoping to record our agreement with  a Deed of Trust and I am referencing Fannie Mae's Washington (3048) Standard form from https://singlefamily.fanniemae....  I am hoping that this commonly used form, if completed correctly, will help to validate our agreement in a way that a refinance could be treated just as another conventional refinance.  I recognize that this is a 3 party commitment requiring a Borrower - a Lender - and a Trustee.  

I am currently not sure who I would approach to be our trustee.  I know that it is possible for an attorney or title company to act as a trustee but I am not sure who I should approach to provide this service.  I also don't feel this part to be necessary since I have a trusting relationship with the private lender.  I only am interested in assigning a 3rd party trustee to help with the eventual refinancing of my property.  

In researching recently recorded document in our county, I found that most are Deeds of Trust.  I believe a Mortgage agreement is a simpler two party agreement between the borrower and the lender and doesn't require a trustee.  

If anyone can help provide their input and recommendations for how I can do this without anymore corrections I would greatly appreciate their feed back.  I love the learning process and I am already looking forward to using this knowledge the correct way for my next purchase.  

Best regards,

Matt

Hi Susana,

I have used cash, private money and conventional loans to finance the initial purchase of my real-estate projects. Each of my projects have been value-add projects sourced from the MLS but requiring rehabs to make them desirable to the mainstream buyer. Because of such, I got them for a good discount. I have owner occupied all of my properties for a period allowing me to refinance into a conventional owner occupant loan.

I am a huge advocate of the BRRR strategy and that is an understatement. The houses we sold, we lived in for 2 or more years and we were able to realize all profits without having to pay capital gains taxes. The houses we kept we owner occupied and have lower rates and better terms as a result. Because my family knew that we were going to live in our investment, we held a high standard for school district, neighborhoods, and amenities as well as home quality and finishes. The fact that we held high standards for our purchases made it harder to find an investment in our market but, resulted in higher appreciation, sales prices, and rents.

I am not sure if you'd consider living in any of your investments but it definitely has its pluses.  Good luck with your journey.  

Thank you Mike for the contact!  I sent Ralph an email to see if he would be able to help me out.  It appears that he is in KS and my property is in WA.  We will see if he can help and if not, if he has contacts in my state.