All Forum Posts by: Steve Milford

@Dorian Redden I would say look at what you want and what are your goals. If you are a go-getter, most brokerages will show an interest. Treat it like a business, learn basic accounting, profit and loss (revenue-expenses=profit or what you pay yourself). Read a lot, listen to Mark Kohler for back-end knowledge (you tube), read Profit First, study MLM and cold recruiting strategies, study interruption and appreciation marketing. Figure out where your new ideas come from. My creative ideas come to me when I am reading, writing (like in this post), and when I am in church or at a seminar.

I am a part-timer and love it, because my W-2 pays for my basic living expenses, health insurance, and PTO. Real estate is mostly an evening and weekends in your face hustle, so I do that. I also sell that piece. I say, "Because I have a day job, there is never any pressure to lower a list price so I can earn a commission faster; this allows Sellers more control. Most Realtors are truly living paycheck to paycheck, but since I have a steady income stream, I remove this burden." And then I let people know that when I am required somewhere during the day in real estate, I take a day off, etc. I read industry reports, review new listings, and prepare my call list in the morning before W-2 work. I call govt agencies and other 9-5 businesses on my lunch and breaks, and then I try to work the phones at least 30 minutes, a few times a week. I am an agent for myself, friends, and family first. 95% of my income comes from referrals. Most people here on BP are consumed with keeping their costs low, yet they don't get licensed to buy and sell, and thus don't make that transaction fee when buying their own. Treat it like a businees. Be hungry, sell your expertise. As a Realtor you will become an expert at finding things, sell a concierge referral service.

Most agents burn through their existing network in about 2 years. It is my fault that I am not adding to my network fast enough. I have learned, for every 5 people I meet, if I can build a relationship with at least 1, then that is a good referral source (though I also need to be remind them throughout the year of what I do so I stay top of mind). If you treat people kindly, they will remember you and refer to you. I hate receiving all the solicitation and door knocking stuff, so I don't add to the problem. I send a lot of gifts through the mail. Connecting with people in person 1:1 is hard, there just isn't enough time and everyone is busy. If I need extra training, aside from figuring out how to make the phone ring, I go on youtube, or take formal online training, or contact title companies for classes, or participate in business networking groups. Best networking tip is to go out there and be helpful to other people, talk about what you do, pass out your card as fast as you can, exchange contact info and find out about them so you can celebrate their lives as it happens, and follow up, follow up, follow up.

@Ben Toth I don't get all the hype. My fanchise fee of 80/20 capped at $2,400 annually; no other costs. No other brokerage even comes close. I joined this brokerage day 1, after interviewing many in my area. Even the owner needs to produce to make a decent living. That's my idea of a fair trade, give me max commissions to invest how I want; not some weird recruiting scheme.

@Michael Pilolla I like a much simpler method. If your rental income vs. debt service ratio is 1.45 or better then its a good deal and it is brrr-able If not, then not. Don't try to force it. Or work out other deal that does work with relative, like carrying note on it or something else.

@Lance Queen

I agree with Russell Brazil, your listing copy could be better. Our MLS allows 480 characters, and I use it all on every listing. Also your Zestimate is killing you. Have agent do open houses not to seek unrepresented buyers (like they prefer), but to find out what's wrong. Eyeballs and non-verbal communication tells a lot more than direct feedback. Or do it yourself, and ask buyers directly, "Straight up, what do you think?" You will find your answer fast. Many Realtors have a hard time delivering bad news, except to say, " need to lower price." But the bad news may be something fixable and easy.

@Mark Cruse If the investor can't see the profit in the numbers alone then they will second-guess everything/something/anything else for validation. It's a business model - it needs to make sense. If not, find a different property. I would rather someone see that the number with reality, than look for validation in another person's opinion and then get upset when problems come up - because they always come up eventually.

@Yvette Valencia I would go from the perspective, of... if that was one of choices for rent for yourself, would you live there? If not, move on.

Since your close, do the PM yourself. Here is what I would do:

0) Treat this like a business, not a hobby. As a business, there is no fussing around with inadequate performance of your partners and contractors including the PM. 1) Read the tenant-landlord code for your area, so you know your rights and responsibilities. 2) Fire your PM, the amount you will save per month will be the compensation for your time. 2) Use Cozy.co for screening and rent collection. 3) Find a handyman in area that has great reviews and use them for hands-off repairs. Maybe find 2 in case the primary one gets super busy and can't get back to you asap. Have your contractors take pictures and give feedback through your cell, and then you can authorize based on problems at hand immediately. Or do the work yourself. 4) Hire a local service to cut the grass, and trim back every 2 weeks or so, if tenants seem unwilling, etc. Don't complicate it, just look for a service to do a mow and blow, or a seasonal cleanup, and wack everything back. 5) Find a attorney that works with landlords and get some professional advice, and for and future eviction process if needed. Personal attention to the problem will help everyone, including your personal frame of mind and anxiety level. I have a FT W-2 position as well, NOT as a Realtor. I make calls during my lunches and breaks. Most months I spend maybe 1-2 hours communicating with tenants, making calls, or arranging maintenance.

The most agonizing piece will be doing the showings to future tenants. Sometimes a waste of time when people don't show, though it is the best way to get feedback about the property. I show in evenings and on weekends. I also make friends with the neighbors and encourage them to call me if there is anything out of the ordinary.

@Nikhil Batra My recommendation is to go sniff homes every day or as often as you can. Pictures most often tell a rosier story. Find a Realtor you want to work with, and go from there. You will learn the market extremely fast, then go with your gut.

@Carol Venolia I am one that allows their tenant to have multiple large dogs. Personal companions are fine, but a home business that brings traffic to neighborhood is not fine (versus selling stuff on etsy or ebay). Check on local regs regarding home-based businesses if needed, but I would say, "No."

@Fernando Domingo Think about it this way. If the house was vacant and I visited at this time, and it was hot and sweaty upstairs, I would put in a window unit, just to get it rented. And then make an agreement with tenants, that they have to maintain it. $200 fix for landlord is nothing compared to $150-$200 additional in electric bills per month operating it, that renter will be incurring. The house needs to be viable to keep renters in it long-term. 1 month of vacancy can wipe out profit for whole year, depending on rent. Or thought another way, if you were the renter would you expect a window unit?