All Forum Posts by: Mat Lewczenko

I hear this ALOT...
"I had a great PM company, paid them $X but they are gone, had to fire them. They were great in the beginning and then..."

What makes them great at the beginning?
What are the biggest let downs?

I ask because my partner and I are putting together a business plan to start managing other investor's properties as well.

What do you all think is the best Value Proposition that we could offer that the current management pool is lacking in.

Very interested to hear everyone's perspective.

Casey,
So what was your ad copy/Title?
What category did you post in?
Or what verbage was in your image?

Those are some nice numbers.

Interesting indeed.

I think the author brings up a point that I share as well. Criminal minds can be so creative, that if chanelled in the right avenues, the success should be equal to if not greater than drugs, guns, and prostitutes.

While it may seems simple, to just say "hey why don't you try something legitimate" we are dealing with much much larger socio-economic issues/roadblocks.

Interesting post title though.

I happen to be working through the same situation, working full time and trying to get to the point when I can break away and give my full attention to my business.

I think you are on the right track and no one way is "right". What may help you decide what to do is start with the end in mind and work backwards to flesh out your action plan.

If you want to be a landlord, flipper, PM, or wholesaler you can then work backwards to see what you need to accomplish and then time block your days to get to your goal.

Unless you are also licensed, you are not going to get anything from that realtor other than a thank you. RESPA has alot to say about referrals.

It is the responsibility of the investor to be able to expalin to the realtor and the seller why this transactionis in their best interests and is a win-win for all involved..

I'm an agent, but I am in investor first, many of my agent "colleagues" are not even aware that there are state approved option contracts approved by our board of realtors available and have no idea how to execute them. That's where you the investor step in.

It's more work explaining things to all parties involved but if you got a deal, then you got a deal.

I would suggest, if the realtor is not familiar with how to strucutre payment, ask to speak to their broker and see if how they would like to write up the comissions. Hopefully they are willing to be creative.

Best of luck.

A couple ways come to mind.

Has the property been on the market long? 120 days+? If its about to expire then the agent "should" want to work with you.

You could offer half of their commission up front, 1.5% (from your side of the option) and then a create a note for the remainder of the commision after you close with your tenant buyer.

Or, if your spreads are good, and you are getting more than 3% option consideration, give the agent all their commision up front, and then proceed as usual. If your cash flow is decent then you should still have some protection.

You may even get them to agree to reduce their commission to 2-2.5% to get the deal done and paid right away.

Just two thoughts that come to mind. I'm interested to hear some others as well.

That's pretty much the thinking that we came up with as well. With so much inventory, even if done right, retail buyers can just look elsewhere.

J. I wish our basement looked as good as those fancy wall plates. Ours is like a bad spidrman movie - cracks is all directions looks like a highway map.

Thanks for the insight guys.

Was this supposed to be a blog post?

I tripple concur with the above three :)

I think that if you can structure the deal all the way around and you are okay with each scenario(wholesale, pre-tail, retail, or rental) you just increase your opportunity for success.

When we look at a property we make sure we are good with keeping it as a rental (worst case scenario) so if our flip doesn't sell for whatever reason, we are still okay renting it until the market turns, or we need our cash back out.

Figure out what your big "why" is and then your strategy will become clear, i.e. : "Why am I getting into this?" then the "What do I need to do to make that happen?" will become clear.

Cash closings are the best, three forms or so to sign, grab your HUD, get your key and go.

5 minutes.

Sweetness.