All Forum Posts by: Jake Alger

Hi @Aditya Veluri,

I am a broker in Seattle and can tell you, investing for cash flow is not dead up here.  Depending on where you look, it can be difficult.  Almost everywhere here is competitive, but if you look in the right areas, it can be done.  I just helped a client who found a cash flowing property outside of the city down in Kent.  I'm currently working with another buyer who is looking for a cash flowing property in Tacoma.  They can be found, you just have to hop on them quickly.

Cash flowing properties paired with the appreciation value we are getting up here is a tremendous opportunity in my opinion.  With our values increasing so rapidly over the past year (in particular), anyone who purchased 12 months ago has seen amazing returns on both rents and overall value of their properties.

The main thing to watch out for in Seattle is the rental rules and regulations within city limits. I won't list them here but recommend you check them out and see what other investors within the city limits are saying. Many are moving their money outside of the city by liquidating their homes.

There's a lot to learn when investing, especially in hot, competitive markets.  Having a broker, fellow investor or mentor in the market you're looking at is definitely an added value.  Don't let anyone tell you otherwise.

Feel free to contact me if you have any questions regarding the Seattle market and surrounding areas.

Hi Peter,

I can't say definitively that a handyman service for helping agents makes sense as a business for YOU.  Whether or not it's good for you depends on, well, you. :)

However, yes, there are countless times where we (as agents) refer out to people we know and trust.  Home inspectors are one of those referrals.  So having a handyman in our back pocket would be a great benefit.  Heck, it would be a great benefit even for home inspectors.  Most inspectors, at least the ones I've worked with, typically have come from the construction trade and are able to fix what they find wrong, but most simply don't want to do that kind of work anymore.  Thus, they're Mr. (or Mrs.) Inspect-it, not Fix-it :)

That's my long way of saying, in my opinion it could be a good business.  I would definitely use it, unfortunately I'm way up here in Seattle.  If you do decide to pursue it, I'd be curious to know how it turns out.

Best of luck!

Hi Shishir,

There are plenty of areas around Seattle where you can find cash-flowing properties around 300k.  I just worked with a client who was able to find exactly what they were looking for down near Kent / Auburn.  Further south in Tacoma is a good area and up north in Everett.  The only thing I would watch out for are the rules and regulations imposed by the city of Seattle for rentals within the city limits.  As this market continues, the more those properties outside the city are going to cash-flow and appreciate due to more and more people looking outside the city for property.  I'll send you a message and see what I can do to help you out!

Hi Elijah,

When I started out I used Real Estate Express for my coursework.  I've heard of people using other online platforms although the names escape me at the moment.  From my personal experience I would recommend Real Estate Express.  Their platform is easy to use, they are well priced and you get access to a certified instructor if you have questions.

Best of luck!

@Robert Yousef sounds good.  Also, BP means  Bigger Pockets (saw your post to Bill).

@Kareem Lyons Understood - just keep in mind that whether the price tag is $100k or $10M, the process is still the same.  The only thing I've noticed is that the clients can be more demanding.  That in all honesty, in my opinion, is better.  That tends to mean they are more involved and willing to move forward.

Hi Kareem,

First off, don't give up!  We have all had times where it's hard, a buyer backs out, a closing doesn't take place, people decide not to buy, decide not to sell, etc.  I know it can be discouraging, but this is why we have such a high failure rate in the industry for brokers / agents.  The tough stick it out and overcome.

Per the advice of your office manager, I would echo that.  Maybe not exactly how they put it, but definitely similar.  

I've always been a proponent of "start out where you want to end up."  This is how I started.  I thought at first I would work with smaller clients, smaller budgets but that only made me realize that my whole book of business would become a demographic I didn't plan on working with.  Sure, it can be harder to break into a higher-end market, but ultimately I knew I wanted to work in $1-5M homes (which for my area is very common).  Everyone I ran the idea by ultimately said the same thing, don't try breaking into a market later after you're established - establish yourself where you want to be.

Just remember, you miss 100% of the shots you don't take.  What's the worst that can happen if you decide to try taking on bigger clients, they tell you no?  Guess what, if you never ask the answer is going to be a default no.  So give it a shot!  Team up with a few agents who have experience, advice and most importantly, clients!

I hope this was helpful in some way.  We are all here for you.  We've all been through it.  Some of us have overcome it.

Hi Robert,

Real Estate isn't something that shows returns immediately, it's a grind.  My recommendation aside from smiling and dialing is to network, network, network.  Oh yea, and network!  

Reach out to other agents in your firm, ask if anyone needs help with open houses, showings, etc.  You wouldn't believe how many established agents don't want to do their own open houses.  This is a great way to pick up buyers.

Attend local networking events, fundraisers, conferences, happy hours.  Even if there aren't buyers or sellers in attendance, handing out cards, shaking hands, kissing babies helps show that you're part of the community.  The people you meet may have leads, or if they don't right away, giving them a business card or getting theirs and following up at a later date, may give you a referral to someone they know or have talked to since.

Go to local sporting events, even games for local elementary schools, high schools, etc.  Network with the parents in the stands.  Sponsor a little league team, a girl scout troop, whatever the case may be.

Send mailers, post cards, market updates, letters.  Include a business card and some personalized touches.

None of these may give you instant results, but it's all about the end game, right?  Get out there, network.  Don't get stuck behind a desk all the time, people need to see you're part of the local hustle and bustle.

This is simply what I could come up with in a few minutes.  Hang in there and keep working hard, it will pan out eventually!  Nothing comes easy in life and the longer you can hold out in your new career, the more successful you will be down the road!

Feel free to reach out if you need anything.  Best of luck.

Hi Mike,

That is quite the question and to be honest, after reading it slowly, I see all sides here and I'm sure everyone will see it a little bit different.

I agree with the point about the seller not paying commissions on monies used to assist the buyer.  It doesn't make sense that the sales price would include concessions, but in all reality, that's how it's reported, at least here in WA.

As far as the argument part, I would argue that producing an "able" buyer doesn't necessarily mean that the buyer isn't "able" to purchase the property without the concessions, but rather unwilling.  For instance, purchasing a home and asking for seller concessions may have nothing to do with qualifying for a loan.  It could purely be a move to close with less cash out of pocket for any number of reasons.  That to me would mean they are unwilling to purchase at any other terms, but have every right to do so.

I've always understood it as:

Ready - is in a position to offer on a property, actively looking, etc.

Willing - makes offer on a property at the terms of the seller

Able - has the financial means to close at the terms of the seller

This is a good thinking question, it's going to be on my mind all night!  Thanks for posting :)

I agree with everyone above me.

Between the drive and a little more inventory for renters, that may be the effect.  The travel time during rush hour can be pretty bad.

I know a lot of people I have talked to lately have clients who are looking in Kent on the East Hill and south (still between 167 and 18).  That area is really, really hot right now with not a lot of inventory.  It's only a matter of time before there's nothing left between 167 and 18 that people can afford.  It'll push out, just a bit too far away for some people at the moment.