All Forum Posts by: Rick Santasiere

Where is the SFR located?

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Stephanie Cabral 2%+ in CT is fantastic as Kevin stated. If your key priority is cash flow, and you ran your numbers including a slightly higher capex/vacancy rate (higher turnover area I would presume), followed by property management that you trust, go for it. If self managing, it may not be worth your "time," but I am not sure how you have the rest of your properties set up. I, personally, would not invest in that area because I run my own property management arm, and try to shy away from areas that may challenge my "time value." I actually would consider investing in an area like that, if I had another trusted PM that handled it, if the numbers still worked that is. I think appreciation, value add, and resale would have to also be low on your priority list as well. Of course value add "could" be an element that works in this deal if BRRRR is your end game. Keep us posted and I look forward to hearing more about it later this month in rocky hill!!

@Mark Campo. I think you received multiple insights on why an agent would not "vet" every MLS deal for you. An agent would absolutely do that for you if you had an established relationship where you have helped one another in your respective businesses. There will always be mixed review on exclusive agency. I can argue both sides (as an investor and a broker). I think it will be extremely hard for you to find an agent that will "vet deals" for you if you are not committing something to them (they deserve to get paid for their time).

All successful business relationships exist when two parties an "add value" to the other.  Most agents will shy away from sharing their deals with you if they have reservations about your loyalties to them.  It's almost like a wholesaler / rehabber relationship:  A good wholesaler has 2-3 top rehabbers that they have built relations with over time because they have both made money together and have built trust.  A brand new rehabber trying to grab the best wholesalers deals is highly unlikely because of their lack of track record... Just a different thought from a slightly different angle..

Find the right agent that you can work with.  If you end up not working with an agent exclusively, I would suggest either a direct mail marketing campaign (where you can find your own off market deals), drive for dollars, hit the eviction court lists, look for older tired landlords, etc.. There is a lot more "value" in some of the real estate profession than people think; and with that, you can do that same work on your own.  Only issue is that if you are not in it full time, you run the risk of missing a deal that might have come to you had you built a strong relationship with a professional. I know a young guy, who is taking action on his own (without the use of an agent) and is coming up with potential leads down the line, but HE is working it, not the agent. My $.02

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Nice work!!

@Mark Campo.  Mike and Scott had some great points, so I will not address those points.  What I will address is chemistry.  Scott did mention testing out your agent, maybe on one deal and see how you like how they work.  What I will tell you is that there are all different personalities in any business you go into.  You have to find the person who makes you feel heard, valued, and also offer you advice that you can buy into (trust) and feel like it is in YOUR best interests.  You mentioned that your current agent is a little head strong and maybe "old school." The technology and ways we use it are key to working with buyers and sellers effectively in this time period for sure.  My advice is to make sure your agent can adjust to YOU and your style, while being able to act quickly for you.  

Your comment on a young agent to bully around made me laugh, and I completely know where you were going with it.  It is clear that you value hard work and motivation, in fact, you made the comment that you would pay dearly for that motivation.  I urge you to think very seriously about what value's you feel are in your best financial interests.  You can absolutely get a newer agent to run around for you, submitting offers, and you can probably be in control of that business relationship.  That same newer agent could make mistakes.  The newer agent may not have dealt with difficult transactions before.  There are extremely valuable lessons learned in this business that come in time and experience. A newer agent might not have enough "failed transactions" to be able to cope, and you may not have the patience with his/her inexperience when the going get's tough. Let me tell you, it always get's difficult. A good agent knows how to manage the transaction, the other agent within the transaction, him/herself, as well as guide you in your own thinking. Your new agent (that you think is motivated) may lack all of the key ingredients to SEAL THE DEAL, which is what you are looking for; someone to help you build wealth and create income. My suggestion, go to some meetups, like Scott mentioned, or simply reach out to other agents to see if you feel you would get more from them. I hope to meet you at one of our meetups or feel free to message me.

@David Zheng. Great story.  I appreciate the inspiration! I love your description of how you ran your business, and I actually agree with you on one thing:  Doing everything yourself (or as much as you can) when you are just getting started will give you a better edge when you decide to transition some of the BS (let's use Property Management for example) years down the road.  It will show you how to "value" others contributions to your hard work, and certainly set the precedent for your expectations (of others)  down the road.  Cool story, and I always love when 20 somethings share their success (well at any age for that matter).  

@Perry CotterWelcome! You have lofty (but attainable) goals if you work it. There is so much information out here for the taking, and so many people willing to help and share their experience with you. I have been through a fair amount of REI in my years, and would be happy to share with you. PM me any time. I am "up North," but would welcome a message, call, or coffee chat if you ever ventured up this way. Congrats on taking the first few steps.