All Forum Posts by: Matt Shields

 I think those numbers are for the average incomes. usdebtclock.org pulls income information from the Social Security Administration which uses median incomes. https://www.ssa.gov/oact/cola/central.html

Median Income $29,309 in 2000 - $30,421 Now

Median Home Price $166,626 in 2000 - $313,878 Now

The math doesn't work.

Dual agency is illegal in many States, and I don't know of any where an agent can represent both sides if they own the property. Is this an owner/agent? I frequently must send people to buyers agents with my own listings.  Even when it is allowed some brokers will prohibit their agents from participating in dual agency. It is a legal gray area and comes with much more liability for the agent. While the broker is supposed to represent both parties in the transaction fairly, ask yourself this "Who is paying the broker?" Money sometimes corrupts. 

Disclosure

I think most of the upside is covered here, so as an associate broker I'll give you some downsides (At least in here in AZ). 

You may not save as much on commissions as you expect. Dual agency (representing both buyer and seller) is illegal in many States, and I don't know any that allow dual agency when the agent is also the owner, and even if you could the liability would be very high. You will have to offer a selling broker/agent a commission, so now your 6% savings is down to 3%. You can pay less, but agents boycotting you is another story.

Subtract from that 3% the costs of training, brokerage fees, E&O insurance, licensing fees, National and State association fees, and required continuing education.

You are held to a higher standard. If you ever end up in court, it is assumed that you are more knowledgeable than other people, and will be held to a higher standard. A judge/jury may believe that you took advantage of someone with your licensing.

It is illegal to pay anyone except a broker a commission or fee. This prohibits paying unlicensed bird dogs/wholesalers to bring you deals. 

Many owners do not like, trust, or want to deal with agents. You must disclose that you are an agent in all offers and advertising.

Real estate investors and agents are very different things. It may surprise you that most agents do not invest in real estate. If you want to be an agent, then, of course, get the license. If you want to be an investor, I would recommend finding an agent experienced with investing. You will learn a lot working with a good agent, not one wanting to slam you into a property just to collect a check. When you become successful and are doing many deals a year, it may make economic sense to get a license, although many successful investors are not licensed, and many who were have relinquished them.  

Good luck.

Article about tensions between landlords wanting to start repairs before mold sets in and their tenants who have no place to go.   https://www.nbcnews.com/storyline/hurricane-harvey/first-they-fought-storm-now-they-fight-their-landlord-n799206

If you live in an area prone to natural disaster's maybe the lease should spell out a course of action.

I'm convinced that they all suck. 

Thanks!

I tried to Google the info for REI Guard but couldn't find the company.

Does anybody know of some type of insurance for flippers. I'm paying an obscene amount for insurance for each flip property because the initial policy fees are so high. I'm constantly opening and closing policies. This also makes wholesaling nearly impossible. Is there some type of umbrella insurance that would cover any homes that my company owns up to a certain amount?

I was at ground zero during the crash working in real estate. While there were many things that contributed to the market downturn, two problems were the main cause, and neither has been fixed. First no money down loans. Despite what the government and pundits tell you they never went away. For example, an FHA requires only 3.5% down, but the dirty little secret is that buyers can receive up to 6% in seller concessions, and add to that another 4.5% from down payment assistance programs.

The second is non-recourse loans required by many states including here in Arizona. When you combine homeowners with no equity and a loan that they can walk away from without a possibility of being sued by the lender, it is a recipe for disaster. What began as a small downturn in the housing market became a crisis because homeowners with no equity and nothing to lose began walking away from their mortgages, further driving down the market. Many didn't even try to short sale because it was of little benefit to them, and this resulted in entire neighborhoods being nearly vacant. These homes then became the targets of thieves and vandals lowering values to a fraction of their original worth.

If homeowners have substantial equity in their homes they are not likely to default in a small downturn, at least not until the market falls below their equity. Even then, if homeowners know they will face a lawsuit by their lender this will deter a foreclosure, and if needed mortgagers will sell off everything to make the payments. During the crash, it was so frustrating to watch people let their current home go back to the bank, while they moved all of their cars, boats, motorcycles, and giant TV's to a new cheaper home. Their only punishment was damaged credit, but now enough time has passed that their credit is restored and they are ready to start the process all over again. It's not so much that history repeats itself, but people never learn.