All Forum Posts by: Peter Mckernan

When selling a house as you know the fees typically come from the seller's net proceeds (commission, closing costs etc.). So, if you are taking 2% of the 5% from the listing commission, it would not come from the agent, the agent has the contract with the seller for the 5%. It (2%) technically would be coming from the seller by reducing the 5% to 3% and then you get a closing cost credit for 2% at COE. Agent gets paid from the net proceeds unless the seller is unwilling to pay the buyer agent fee/commission, which in this case you do not have an agent; that agent would ask (if they were representing you) for the buyer/you to pay them their commission from a buyer broker agreement (if the seller was not paying commission).

So it's the same difference, the seller will pay it (2%), and the agent will not come out of pocket for it. It will be structured as the seller's concession to the buyer of 2%, then the agent gets 3%, or whatever the seller agrees to pay that agent after the 2% goes to you. The agent will not be paying you/seller/buyer because the agent does not bring money to the seller/buyer in any fashion in a transaction (typical transactions), unless this agent is a partner to that person buying the property, or they are a principal to the property.

Let me know if that makes sense. 

The off-market strategy is like a business strategy as a whole. As you were in property management, not sure if you ran your own company, but as you look at it.. It is like building a business, there is a tactic(s) to get those leads. 

Couple off-market ones to go after:

1. Probate 

2. pre-foreclosure 

3. trust/estate (could be nitched out of probate due to the different messaging)

4. Tax liens 

5. REOs
6. Family law attorneys  (divorce)  

I would say going on a team.. Agents on teams will get leads, learn the business and leverage the team for their higher income and future business success. 

Using and running a CRM is what you need to help the business you have in real estate grow. The automation is helpful to the emails that you send to the text, this is all nice to have along with great drip emails for birthdays, reminders in escrow, and much more. 

This is something you need to find by developing relationships with realtors in that area who have connections with GCs and property managers in that area that have GCs that they use as well. 

These really do not do much these days for people finding most of the listing online; however, you need to be sure that you put one out because any lead is a lead to put in your database to market to. 

There is a misnomer about times to call, it is not always the first one that calls.. It is the one that gets in contact with the person/owner and connects. Some people that they are calling (the owners) might be at work until 6pm so that is when they can answer. There are always stats on what times are the best to call, that is not what I would look at.. I would look at when can you call and actually make the calls, and work on scripts.. Those are the two/three most important things (actually doing the work, persistence, and scripts).

I am always an advocate if you can fix up a property to make it more marketable, that is really the way to go. For your example, making the basement fully operational as a livable space seems like a great value add. If you were going to just do a remodel like a flip and not add living space I would say that would not get you more money. The things that give a rental a value in cashflow are benefits to the tenant in the form of living amities. 

For example of above, there was a person I know, they bought a house for a rental, the square footage was enough to make a 3rd bed out of a dining room, that would increase the month rent by $400.00 a month if they did that.. So they permitted the room as a bedroom and do the work through a contractor for $20,000 and now they get more money today due to livable pace added verse a dining room that was not providing as much value as a rental. 

Agreed with the above, your problem will come when you need to get someone out there on a Saturday morning around 6 am and you are three thousand miles away on vacation. The PM rate in every area is different, in my experience, some are low percentage and low quality and then there are some that have high percentage and low quality. You will need to vet them to confirm they are good for your property. 

It is always great to hear someone coming from a place of giving to gain knowledge. I would check the events page in your area for meet-ups on BP, I would check for local meet-ups in meetup.com, and I would get coffee with as many investors on this site that are in your area as you can to get the ability to showcase what you are willing to bring to the table for them.