All Forum Posts by: Michael Dumler

@Camerron Feagin I guess it depends on the company/institution, but is turnkey viable in this market? If you have a solid deal, why not list on the mls? More likely then not, putting the property on market will receive multiple offers over asking. Do turnkey companies have a certian buyer's list that they want to keep satisfied? I'm just thinking out loud here, but how do turnkey companies make a profit selling properties that hit the 1% rule in today's market? I undertand how this strategy worked back in 2008/09. Do providers get incredible off market properties? 

@Allan Pilapil generally yes. These larger platforms will pull sale comparables further outside from the recommended radius (0.5-1 mile) thus, skewing realistic list prices. Zillow's estimates have a 7.5% median error rate, and sometimes even greater in different markets. In my opinion, no resources to back this theory, platforms are incentivizing sellers to list their property given the misleading estimates. Always best to use local resources or a trusted broker to pull accurate comparables to give the seller a better understanding of the market. Hope this helps!

@Peter Morgan all offers should be presented and viewed by you. Your agent should certainly help and advise when needed, but at the end of the day, you make the final decision. Have your agent manifest sold comparables within the past 90 days to give you a sense of what the market is taking. If someone offers 30k over asking, but a similar property down the street sold for 10k over list, this will provide a better insight and awareness of a buyer's true motivation/intentions. You get the idea. Best of luck! 

@Justin Megna this may sound broad, but study every factor/variable that may have an effect on your investment strategy and specific target market. I find it extremely important to know and track your numbers on a consistent basis. Learn housing metrics such as, average SFH sales price, average vacany rate, lease comparables for different properties/subdivisions. Study potential economic trends like, new job growth, relocation of companies, overall increase/decrease in employment . Look into local governmental policies, for instance, laws that may regulate/cap rent, property tax increases, different zoning laws that may hurt or help your strategy in the long run. All of this info can be sourced from online platforms and articles, real estate investment meet-ups, and general networking with folks in the industry.

Maybe studying all of this is unnecessary, but at the end of the day, the more you can perceive change in the RE space, the better you can adjust your strategy and criteria to profit in the market. Hope this helps. 

@Kevin Young you need to build rapport with the owner. Reach out and let them know that you are interested in purchasing the property and what your future intentions are. Determine if they are even motivated to sell, sounds like they may not be, but circumstances change all the time. If they have zero interest in selling, then keep them in your back pocket and move onto the next. Consistency is key, reach out every few months and regulate if anything has changed that may motivate them to sell. Hope this helps! 

@Carlos Tapia congrats on taking action and identifying a potential deal. Is the property listed on market? If so, I highly recommend using a real estate agent that is well accustomed in your specific market of interest. Working with a buyer's agent will cost you nothing, given the seller usually pays for broker commissions. This is also beneficial, as the agent will handle/delegate the bulk of the transacton and will negotiate on your behalf. A qualified agent will be able to pull sale and lease comparables for you to run the numbers, thus allowing you to determine if the deal checks out. Lastly, make sure to account for all expenses when analyzing. Best of luck! 

@Tony Thomas check your local laws, but I believe most states require a 30-60 day written notice before asking a tenant to move out. In this market, you may have luck with listing the property tenant occupied and still getting a handful of interested buyers. Unfortunately, if buyers only want the property vacant upon purchase, and the current tenants rufuse to move out, you may have to file an eviction. Set up communications now with the tenants and let them know you plan to give them a notice. Best of luck!

@Kevin Kim congrats on getting under contract. I hope this deal works out for you. 

Your situation is fairly common, and I believe none of these potential repairs should kill your deal, nor do I advise backing out. Simply reach out to several contractors and have them provide an estimate/quote for each repair item. I do recommend that the is home completely safe for future tenants, but some of these repairs may not even be necessary. Once you receive an estimate, run the numbers and see how this will affect your overall monthly cash flow and CoC. Best of luck!

@Dominic Taylor agree with @Tyler Gibson You need to first study the market and determine if flipping is even a feasible investment strategy. What may work in one market, may not necessarily alter to another. Network and connect with different meet-ups, see what strategies have worked for some and not others. Most importantly, as I'm sure a majority of experienced investors would advise, you need to get crystal clear on your goals and criteria. Make a plan of action and stick with it. Best of luck! 

@Steve Adler a lot of variables at play here man, and to be honest I'm probably not the most suitable person to be giving such major life advice, but a couple things do come to mind. First, is your girlfriend employed? If business is not going well for you, having this to fall back on to ensure income is viable each month will certianly help. Second, have you had any sales experience or dealings with investment properties before? To be blunt, this industry can be ruthless. A lot of rejection and hassle. Do you have the time and resources to maybe start out as a part time agent? I would consider seeing if you can get a deal or two done while still working full-time in finance. 

The entrpreneur part of me wants to tell you to go for it, but then again, I don't have any kids nor any major responsibilites so, it's a totally different position.