All Forum Posts by: Stephen Morales

Quote from @Melissa Lindsey:

The loss is that we had not taken into account the realtor fee. 

On another note-according to the realtor, there is a downed tree on the property that we were unaware of aren’t sure if it was already there or if it happened after we got it under contract. The realtor also mentioned that the buyer is planning to have it removed himself. So I don’t think they’re expecting us to fix it.

I would work with the realtor and explain the situation to them. I would renegotiate on all ends of the deal, Buyer, Agent, and Seller. 

Hopefully you can come out from this as a net zero. I would also double check with a real estate attorney to see if there is anything else you can do to protect yourself. 

Hi Melissa,

Sorry to hear your going through this situation! 

Need more context and stipulations of the novation agreement you signed before I can really give sound advice. 

In the future you can include under additional terms and conditions a minimal profit clause to keep this from happening. 

Was the loss outside of closing fees? Like repairs? 

I would try renegotiating with the buyer and see if the Seller will take the difference. 

Is there a broker involved? Can you negotiate commissions? 

I totally understand! It's awesome to be super motivated but beware of shiny object syndrome! I have always been pretty focused in my real estate endeavors, but I will say in the past I have been over zealous which can be just as dangerous. (TLDR over extended on buying too many flips at once and got caught when the interest rates hiked)

I would maybe get a few transactions under your belt first in SFHs, there is a learning curve for Multi-family acquisitions. There are a bunch of free resources online and there are also some CRE classes you can take through your local NEFAR board. There are also some extracurricular studies and courses online that you can take for learning proper UW and utilizing UW models. These courses and certs are normally around $2400 + but are totally worth it if this is what you are looking to pursue.

If you want to go an easier route as a deal finder and make some capital before jumping into CRE, then I would definitely advise looking at wholesaling SFHs. I actually pivoted from traditional real estate sales to wholesaling and REI after my first year or two as a licensed agent. I eventually wanted more of a challenge and worked with local PE firms to gain more knowledge in CRE and CRE Multi-family developments.

Now I am involved with all facets of real estate and help new users by working on PrimeTracers which is a free property data platform for investors and agents alike. I also provide free advice where I can so if you ever need future advice no matter what the question is, I'll be happy to help! Just shoot me a DM.

Quote from @Jared Rice:

Quote from @Stephen Morales:

Hey Jared, 

I would suggest picking up properties with value-add opportunities. Nothing is better than finding a property that you can purchase with a comfortable amount of equity while being able to add more through improvements. 

Are you trying to find an off market opportunity? 

BTW congrats on taking the next steps towards your real estate investing goals!

@Stephen Morales Thanks for the welcome! 

Yessir, you guys got this!

Quote from @Lewk Dee:

Quote from @Stephen Morales:

Hey Lewk,

Welcome! I'm a broken record at this point but most of the cost of those coaching upsells are just grossly inflated and half the time you're left on your own after you pay the money. That capital can definitely be used on your own marketing. $20k can literally get you all the automated marketing you could ask for to 10x your initial investment. 

If you ever need advice finding off market deals I'd be happy to assist. There are many ways to approach this and they all work as long as you commit 100% to your REI business.

Good luck!

 Thank you Stephen, I appreciate your reply, and I just may reach out for advice at some point for sure!  It's funny, that's all I was thinking about every time they brought up "securing my spot" for $1,000.00 down...."Couldn't this 28k go toward literally any part of my own endeavor?"  I appreciate the validation of my thought process by someone who actually knows :)

Thanks again Sir!
 

Anytime! Always trust your gut! Now more than ever since you're entering the world of REI.

My doors open if you ever need quick advice. 

Cheers to your upcoming success!

Hey Juan,

Welcome to the club! Great to see that you're taking the next step in the learning process before you get started. I am unfortunately on the other side of the country but my inbox is always open! I can give you a breakdown of wholesaling and a workflow in 30-45 minutes. I like to style my call as a Q & A where you can just ask me what you want about the workflow you want to pursue and I can give you my honest feedback on it and what I would do. 

I have experience in REI for 10 years now and I would be more than happy to share whatever I can to help motivated beginners like yourself!

You can also message me with any short questions you have about wholesaling and I'd be happy to respond when I have time. 

Don't forget to look up local REIA events in your area and join FB groups that are in LA!

Good luck! I wish you amazing success!

Hi Erik,

The saying goes if you stay in your head, you're dead. It's a very true saying. 
It sounds like you are in the paralysis analysis phase and you need that "push" to get out of it. 

From personal experience, when I first got into the space I learned what I could for free and got my initial knowledge from getting my real estate license. After that I just continued to look up youtube videos, learned from the available knowledge that was out there, go on forums and meet ups and I always asked questions. 

You're definitely on the right track but like some others have said I wouldn't really bother spending excess of $5k+ that could be used to market your business. Pick a strategy that you think you will be able to stick with the most and send it. 

If you still need help my inbox is always open.

Hey Lewk,

Welcome! I'm a broken record at this point but most of the cost of those coaching upsells are just grossly inflated and half the time you're left on your own after you pay the money. That capital can definitely be used on your own marketing. $20k can literally get you all the automated marketing you could ask for to 10x your initial investment. 

If you ever need advice finding off market deals I'd be happy to assist. There are many ways to approach this and they all work as long as you commit 100% to your REI business.

Good luck!

Sorry! when I get into the weeds of the day I end up using the usual abbreviations and slang terms lol. 

"UW" stands for underwriting. 

But yes that was my question. Depending on what you're looking to accomplish I can help steer you in the write direction. Whether that be Commercial or Residential. 

You already made a great step joining BiggerPockets!

Quote from @Hunter Hanlon Taylor:

@Stephen Morales Great, thank you!

 Anytime! Good luck!