All Forum Posts by: Tom Goans

Please Seek Professional Advice

Legally, legal advice can only be provided by a licensed attorney in the state where the property is located. You should only consider legal advice that is provided by an attorney you hire. Any other legal advice is ILLEGAL and may be very incorrect.

Seeking advice from an attorney in the area where the property is located can be a wise and very economical decision considering the alternative. An attorney will assure you are abiding by the federal and state laws. Every state has unique laws. The attorney will also provide the best advice and options for your specific needs with a consideration for your future. The results will be legally drawn up agreements for your use.

Just they way you communicate with a tenant is regulated. Your attorney will help you with this process.

It is also wise to seek advice from a licensed professional tax and financial planner to make sure the agreement structure best fits your present status, strategy, and future plans - including building an estate. It is one thing to make money; it is a completely different strategy to building wealth.

Legal advice from an attorney and a financial planner you hire will be the cheapest and wisest investment you will ever make.

Moreover, every investment, partnership, and individual is unique. There is no one correct answer. There are numerous options that must be considered and many costly mistakes that need to be avoided. Dissolution is one many forget. Death, incapacitation, spouses, and children are others.

And, yes, you will disagree on the smallest issues. The courts are full of such lawsuits.

Seeking professional advice from licensed professionals can be an extremely wise and very economical decision considering the alternatives.

May your future be full of great success.

@Qasiym Glover,

First question to ask yourself; Why have more experienced investors ignored these properties?

Second, thoroughly research the target market. Understand more about the target market than they know themselves. Do your best to realistically determine and understand the possible economic future for the target market and the trends. This may help to explain why the more experienced investors are not buying.

Third, numbers today are mostly irrelevant months from now. There are many variables that you must consider other than the present-day numbers and squeaking by on a thin profit. This one factor is critical when understanding the target market. Moreover, have you noticed property values are ever changing - up and down?

Research and realistic analysis with an eye to the future are critical to enduring success.

@Renee Munro,

If you are questioning your possibility for success, and so are some of the local investors, then perhaps you should consider adjusting your investment business plan.

It is my very seasoned opinion you may be coming too late to the party. It is a common general consideration among long-time experienced investors that once a way to make money becomes popular and trendy by those with less experience, then the investment opportunity has mostly peaked and passed. This is true of any investment consideration, stock market, real estate, etc.

• Please keep in mind, I am not selling my opinions or books containing my opinions. My thoughts are based upon almost 50 years of experience in the business and having a grandfather and father who were also in the business teach me the art of real estate investing, developing, and financing.

• I am not attempting to throw cold water on your career pursuit. Just offering words of caution.

With that being said, listen to the reasonings the local investors gave you. Take the time to understand. Every area is unique, even within the same city. Every investor is unique and so are their personal goals and especially their acceptable risk vs. rewards.

For your consideration, most times investment opportunities are presented first to seasoned investors who can buy and close quickly. Ask yourself every time you are presented with an opportunity, why was it turned down by the more experienced investors? This does not mean it may not be a worthy investment opportunity for you. It may have just not presented an acceptable risk vs. reward for the others. But wondering may be a good internal watchdog.

Best wishes for a long, successful, and fun career.

@Jessica C.,

It is the opinion of this old investor that you may want to walk before you run. Consider several small investments over putting all your funds towards one or two - especially as a beginner.

This is the advice my grandfather and father always stressed to me and it makes great sense. Should one or two small investments become challenging, it will be less financially harmful to you and more easily corrected. Yet, the big deal can permanently be your downfall.

One of my mentors once suggested to only invest half of my available funds - cash on hand and credit. The reason, costs are always much higher than anticipated.

If you are just beginning, please be careful. You will sleep much better. Your health will be better and you will get fewer lines in your face.

Consider this, there is a high probability that more experienced investors were shown this same investment opportunity and turned it down. Ask why?

Best wishes with your endeavors.

@Account Closed,

I feel there are three ways to view your question and thoughts.

1. What goes around; comes around. Are you a good future business for the real estate agent? If so, this is a great introduction opportunity for both of you. How hard will the agent work in your best interest no matter the commission amount. If money is a motivator, find a different agent.
2. The real estate business is the real estate agent's business - no matter the size of the commission. Yes, the more successful and busier agents may pass on working on selling your property. It takes just about the same amount of effort to sell your property as it does selling a $300,000. Both require marketing and taking time to deal with prospective buyers. YET, there are more qualified buyers for your property. It may sell much faster and be a faster payday for the agent.
3. It may be a great learning experience for you to sell the property yourself. This will give you an opportunity to experience the two primary sides of real estate ownership - buying and then selling.

Good luck.

@Jon Klaus,

I would be surprised if you get much of a response on this question.

Laws are unique in every state, but in Colorado, it is against the law to fix commission rates - price fixing.

In most cases, law or no law, commissions are negotiable and very much determined by the area. $1 Million listing in Aspen, Colorado or New York City are tiny listings. Even in Dallas, $1 million in some areas of the city may be considered undesirable listings.

Good luck.

Equity Trust Company is a company that has a very long history. I am aware of many people who have had great success with the company.

@Marcus James,

It has been my experience that if you want to flush out and deal with the numerous nuts, Craig's List is the place to start. I am not a fan.

The following is my thoughts and philosophy on marketing.

If you want to catch a fish, you must think like a fish. Thoroughly understanding the target market is critical.

-Who is the target market?

-What are they willing to pay?

-What are they capable of paying?

-Is your property considered a value?

-Are you marketing to the target market in a way that will reach them and communicate with them? Focus your marketing to reach the target market.

-Are you speaking to their needs and desires?

-Do you list the features and amenities that are most appealing to the target market in your marketing material?

-Is dealing with you easy and fast?

-Do most of the target market own pets, but your property is a pet-free rental?

-Do most of the target market smoke, however there is not smoking allowed in your property?

Walk in the shoes of the target market. Then you can enhance your methods for better results.

Approximately 90 percent of real estate tenants and buyers begin their search on the Internet.

-Do you have a well-designed website that provides the information the target market seeks?

Lastly, a picture is worth a thousand words. Be sure to include large, high quality photographs with all marketing and promotional plans. Include photographs of what the target market is seeking. For example, if they are prone to having friends over, include photos of the backyard grill.

Best of luck.

This would greatly depend upon the target market desires. Each target market is unique with varying desires.

Please Seek Legal Professional Advice

Seeking advice from an attorney in the area where the property is located can be a wise and very economical decision considering the alternative. An attorney will assure you are abiding by the federal and state laws. Every state has unique laws. The attorney will also provide the best advice and options for your specific needs with a consideration for your future. The results will be legally drawn up agreements for your use.

Just they way you communicate with a tenant is regulated. Your attorney will help you with this process.

From reading your post, I feel you are omitting some very important details. Any ideas from this thread may be very incorrect.