All Forum Posts by: Peter Mckernan

I would review the lease you had with the last tenant, if it talks about tenant covering fees on this then I would ask for them to repay you or take it out of the security deposit check. If not, it is a learning lesson and I would include it on all leases going forward so you do not get left holding the costs for you paying them. 

Side note: I would also check your state policy/local policy for what the tenant could be held liable for when moving out.. I.e. fixing holes in walls, ripped carpet, oil replacement at tenant costs.  

I agree with Bruce, these things like adding ancillary businesses, mortgage, title, etc. are hard to do while running another company. Most real estate agents as I have seen are hard-pressed to just get another deal under their belt, I mean the skills built to follow up, call, and text new clients all while running a transaction is hard for a lot of agents. It takes years to get into the habit of doing this stuff while running multiple transactions. Add a new business and the wheels fall off quickly. This means now you have to do all of the above and start to hire. It is a recipe for disaster. I went to a Tom Ferry event the other day, he shared a slide that last year 968K agents out of 1.5M agents last year did not do a deal, or another stat that is floating around is 71% of agents did not do a deal last year. 

I would have any agent start on a team, get deals under their belt then start to build up a war chest of funds, invest in real estate to reduce their taxes, and do that over and over again while doing active income (selling homes). Once they get to a place of building their own business, anywhere from 7-10 years down the road and they are doing it successfully then they can look at doing an ancillary business.

If you close in the same year, then there is no savings to the seller. But if you can delay it since it is a flip, close later this year, have him/her hold a note for $500K, and fund the rest with a HML/Loan. You can sell next year and he would get hit with the rest of his taxes. It would spread the burden between two years versus one year for the seller. This is not a huge saving for him but could give him relief to not get hit with that amount of taxes all in one year.

Jared! Great question, there are many people out there in the forums and posts looking to do the same! I would say, go to local meetups, go to networking events and keep pounding the pavement to find those partners and deals! 

You can ask for seller financing on the property, he holds the note for you and you bring in cash to close along with a certain amount of money to the seller at closings (i.e. $100K etc). Then you can pace out the sums of money, year two is 50K, year three is 150K, and so on. Then you talk to them about a rate for their interest rate they want and payments they want per month..

If you can do a lengthy escrow, 90 days, then if your rehab is long 3-4 months.. you could do half payment this year for the property, pay them interest/payment on their property and then pay them the second half of their net proceeds when you sell the place which at these timeframes would be into next year. 

The LLC is a little different than adding someone to title for instances. You can form an LLC with a partner and give them a majority stack in the LLC, or form the LLC making you a minority and the other people having majority voting rights. These are just a couple of examples, and it is true the bank needs to see this to agree to change the Mortgage/Title into the LLC. They do not want to add someone to the mortgage/title that could negatively effect the property/loan. The banks interest (no pun intended) is keeping the loan solvent for years to come and putting the loan into an LLC depending how it is structured could jeopardize that position.

You should not have any issues answering this question, it should be found it through a friend/person I know etc. The bank will not stop the deal because of where you found the deal.

Pretty much all the signing services are going to give you a small amount of free signings, 10 signs a year, 20 signings a year, and then they'll want you to sign up for a subscription. I would suggest if you run into this Docusign is pretty easy, reliable, and the most well known. I use Glide and Docusign, those are the only two I use for signing leases, contractors etc. 

You can check the PM list above on the toolbar to find local PMs in your area. Also, I would check local meetups in your area to get suggestions on people who are using good reliable contractors/subs. These same people you can find to give you good reliable PMs in your area too. 

You have to be prepared and ready going into appointments. Listing presentations, four things you need: CMA, net sheet, Listing Presentation, and RLA (listing agreement). The one nice thing I have my agents and I do is a box of cookies.

For buyer consultations, this is a formal buyer's journey presentation (typically on zoom), and go through the MLS, pull up properties along with examples of what we were able to get our buyers for a house etc.

These are critical, the people that do not do this have a decreased rate of getting the client and will look unprofessional. I saw a dramatic increase in business when I changed my buyer conversation to an intake call and then setting an appointment for a full buyer consultation, and that goes for the stuff I talked about on the listing presentation.