All Forum Posts by: Jake Alger

Hi David,

I’m a local broker and would be happy to chat about neighborhoods with you. Given your target price range, you’ll have some options. Being just on the edge where expansion is happening will bode the best investment opportunity in the long term. Have you thought about anything on the Eastside?

Feel free to reach out. 

- Jake 

Hi Jake,

Congratulations on the first child!  That's exciting and scary at the same time I imagine :)

I completely relate to where you're coming from.  I love what I do and would classify myself as a "workaholic."  Like you, I work at all hours and want to provide the best service to my clients.  Communication is something I pride myself on in my business.  If someone has hired me/is working with me, they get me.  If they need to get a hold of me, they can during similar hours as you mentioned (7am to 11pm).  If it's not important, you usually know when you see who's calling and can let voicemail handle it until later.

I too get irritated when agents don't answer the phone or return calls on the weekend.  Especially in markets that are hot, like Seattle has been the last few years.  When properties are selling within a few days, time is of the essence.  

Quick story (and long story short) - I had one agent not long ago who would not return my phone calls, trying to schedule an appointment to see their listing with my buyer.  Spoke to their office, left messages on their cell phone, sent them emails.  I'm still yet to receive a phone call from that agent, some 4 months later...  It always makes me wonder how agents such as that have clients.  I know if I was on the other end, I surely wouldn't be happy.  (Still bugs me as you can tell -- but nothing I can do about it).

Time management is important, and is something I honestly struggle with.  Sometimes my schedule is on point with and other times, not so much.  I don't really feel like i'm losing money on weekends if I'm not working, as i'll supplement downtime with something else (family time, working on house projects, check on rehabs i'm working on, etc).  What I do have a hard time doing is getting away on vacation for longer than a few days.  I feel like i'm out of touch and not focused while I'm away and when I come back.  This is perhaps my hardest struggle as my significant other would love to travel (with me) more.

In my opinion, our business relies on working around other people's schedules.  I think anyone having a long-term outlook for their career in real estate would say the same thing.  I understand how being overly busy can impact your family/significant other and would say you definitely need to make time for the important things in life.  Only you can ultimately decide what works best for your business, lifestyle and family. 

Perhaps this wasn't the answer you were looking for, but I hope it provides some comfort in knowing there are others out there (even with the same name :)) who struggle with the same exact issue.  I'm trying to work through a similar transition at the moment, although there is no child involved.

Feel free to reach out if you'd like to chat.  I'm all ears.

- Jake

Hi Robert,

Technically you do not need an agent in order to make an offer on a property.  However, it definitely makes more sense to be represented by a broker as it comes at not cost to you (typically) on the buy side.  Having a broker allows someone who is knowledgable in real estate transactions to prepare an offer, protect your interests and guide you through the process.  

Hi Noah,

AirBnB seems to be on the rise in our area (in terms of more properties being vacant and then listed as vacation homes).  I personally know of a few investors, a couple of whom I've worked with, who were looking for rental properties and ended up turning them into AirBnB's.  They key is to know what areas allow for "short-term rentals."

As @Brian Side mentioned above, there aren't many buildings within Seattle city limits that allow for this.  You're likely going to find your best opportunities outside of Seattle city limits, given how drastic the rentals laws have become over here.

I'd be happy to chat with you.  Feel free to reach out.

- Jake

Hi Jacey,

Welcome to Seattle! House hacking multi-family’s is a good the way to go right now when in that realm. Trying to cash-flow multi’s outright can be tough, but definitely doable. I had a client not too long ago who did the exact opposite relocation as you. He went from Seattle and bought a duplex in Phoenix. 

Definitely feel free to reach out if you have any questions!

Hi Henley,

@Christopher Phillips is exactly right.  Typically buyers agents show the home without the need for a listing agent to be present.  However, sometimes sellers will request the listing agent be there for all showings.  This could be related to pets, expensive items being in the house (which we always request be removed before listing the home) or items that could use some "explaining."  The latter is usually easily explained to the buyers agent when making the appointment request.

In my market, it's not super common until you start reaching homes above ~$5MM, and even then, it's hit or miss.  Once you start getting higher than that ($10MM+), proof of funds and a listing agent's presence are extremely common for obvious reasons :)

Don't get too caught up on the listing agent's knowing more about the homes than the buyers agent.  Almost all of what the listing agent will know is disclosed through the marketing description, seller disclosure, tax records, etc.  Aside from that, neighborhoods are usually the focus of knowledge, with everything property related being discernible.

Hope this helps.

Hi Kishor,

First and foremost, congratulations on getting started in Real Estate investing! You're taking the right first steps which is educating yourself and reaching out to those with experience on the subject.

You mention looking to acquire rental properties but are mentioning flips. Are you looking to start with flipping and eventually build a portfolio of rentals?

To answer you questions, i'll go through one by one.

1. Eastside Funding is the main HML in the greater Seattle area. They close on a lot of deals and have a reputation that speaks for itself. I've used them, investors I work with have used them, even a couple of developers I know have used them. As with any HML, you need to make sure your numbers, contractors and timelines are on point. While I believe ESF will hold a note for up to 12 months (don't quote me on that), you don't want to be holding something that long and paying 12% interest on the deal... you will lose profits, fast.

2. It's customary in our market that the seller pays both sides of the agent commissions. This means that when you're buying, you will not be paying the buyer's agent's commission, the seller will. When you finish the rehab and become the seller (listing the property on the market), you will likely pay the commission for both sides when a ready, willing and able buyer is found and closes on the property.

To expand on this, typically the agent who brings you the buy-side of the flip (before the rehab), would like to become the listing agent when you're ready to sell. Working in partnership with an agent who understands these types of investments can be invaluable when identifying properties. This is typically how deals are structured when investor friendly agents work with investors.

-- Team Building --

1. I'd be happy to recommend great contractors to you when ready.

2. Listing agent -- I am an investor friendly Real Estate Agent from Bellevue :)

3. HML - I've always worked with and trusted Eastside Funding. As I mentioned before, I work with plenty of investors who are either cash or finance their deals through ESF. There are other options as well (Intrust Funding, Private Lenders Group, Veristone, Seattle Funding, etc.).

4. Title Company & Escrow - Normally this is something handled by the Real Estate Agent you're working with. Each title and escrow company works a little differently, but the outcomes are the same. I typically use Fidelity or First American. I also have private law firms who I escrow through frequently as well.

5. CPA - I'd be happy to recommend a CPA to you as well.

I hope I was able to answer all of your questions for the time being. I'd be more than happy to chat with you about your goals and answer any followup questions you may have.  Feel free to reach out!

Hi Kyara,

In Washington an Agent is synonymous with a Broker.  It’s a different name for the same person. Most people consider us “Real Estate Agents” and up until a few years ago, that was the correct terminology in WA.  Since, the state has changed it to say we are “Real Estate Brokers.”

As far as when to reach out to one, I would say it’s never too early to start the conversation. Should you  actively be looking at properties with them if you’re not ready? Probably not.  But learning the market and asking questions, absolutely. 

Perhaps attend some local investor meetups and chat with/get a lender referral to understand what it takes to accomplish your goals.  I’d be happy to chat with you and/or refer you to some local lenders. 

Hi Devin,

Congrats on working on your first deal!

I would say that if you know you won't be working with a particular agent, let them know as soon as possible.  The best way in my experience has been to be very upfront.  Maybe let the agents know you are interviewing others.  This isn't something most agents like to hear and you'll weed out those looking to make a "quick buck" or get the "easy client" because they'll stop responding.  Those who remain interested and are willing to fight for your business or at minimum stay engaged, are the type of people you want to work with.

In terms choosing an agent, explain to the others that you've connected with someone else who you feel is able to help with your needs (if they even follow up).  If you have multiple agents sending you listings and you only intend to use one, I think you've gone too far.  This could lead the other agent to feel led on when they see you aren't buying or have bought with another agent.  One thing nobody likes is to waste time and I'd want to know upfront.

Not saying this is you, but just to share -- I've had a few potential clients in the past who have gone as far as to get their pre-approval, through my lender referral, start sending me properties (and vice versa), only to then dodge phone calls, emails, text messages, etc. leaving me wasting my time and effort for someone who isn't motivated.  Did they go with another agent?  No clue, don't care.  But you learn to cut those ties real quick because as I said, nobody likes to waste time.

Just my 2 cents for what it's worth.  Just be upfront and honest, it's far better than the alternatives.

Best of luck!

- Jake

@David Spencer,

Awesome, glad to help. I’m happy to be a resource and can provide you referrals to great lenders I work with if interested. Feel free to connect and we can chat 😀