All Forum Posts by: Steve Milford

@Cheyne R Sexsmith Easy answer. Next house you buy for yourself, represent yourself and put the commission into your pocket.

@Cheyne R Sexsmith. Of course not - do what you want! BTW, there is no such thing as investor-friendly agent. My gauge: You are either a hope-to-get lucky buyer or a serious-buyer. Serious buyers have no problem going with their gut and offering onto. I have found that Hope-To-Get Lucky Buyers never get off the fence because of fear.

I helped 1 investor in 2016 find a duplex. In 2017 they came back to me wanted to look for a SFR to flip. After a few months, I said, "Enough of the endless showings" and we parted. He then went with another Agent that told him what he wanted to hear but also pressured him into buying (from a fear perspective). He made a bad choice IMO - he made $0 money at the end of the day for 8 months of work. Now, ironically, he is back asking me for more help. I help Buyers buy what they want based on what it in the market.

@Cheyne R Sexsmith Don't make it so hard. Find one that meets your personality and don't be afraid to fire them if they aren't helping you. Lol, I have gotten fired for giving bad news but on the flip side I've been hired for my no BS style, my tenacity, my extreme patience, and for tackling problems created by others. Likewise, I fire clients that lie to my face or that plain ole waste my time i.e. always wanting to look but never willing to commit on an offer.

@Clark Jarstfer After my divorce, I jumped into it with 2 feet w/o looking back. I got my RE license, found some mentors/peers to glean knowledge, bought my house FHA, then rented it and cash flow from it pays mortgage for it and for an apartment (I wanted to downsize). I am having a blast and on the hunt for more. Jusr get off fence any way you can. Once you have skin in the game you will learn super fast.

@Stephen Thomas This cracks me up! Here is my version of what I hear. I have so much income that I would rather find out how to decrease it versus hiring financial experts in my area (vs DIY) for the best ways to shelter my income, treating myself to better vacations and more play time, being proactive with my current investments, giving to charity, or investing in new businesses. As I earn more, I value my time more.

@Katie Huynh

I think you are making this too hard. The %s are a guide, not a end-all-be-all. You need to get comfortable enough with the numbers to be able to go with your gut. And everyone's version of what is acceptable is different. Here is my recommendation:

1) Secure your financing first; not what online calculators suggest. This will tell you what you have to work with. Get a real insurance quote for a rental, not a owner-occupied home.

2) Become friends with a contractor or someone you know/trust whom has taken apart a house (preferably many) that "look fine". Then ask them their opinion on it. Buy them lunch at their favorite restaurant if needed.

3) Go see the house. Remember that pictures never tell the whole truth. Ideally, take your new trusted friend with you when you go see the house. PM-me if you need help to access.

4) Who says it is a great starter property? A better question to ask is, would you or do you know anyone that would be OK with living there?

5) Look at rents realistically in the area, not what you hope for and focus on why people would rent this property. Take a survey.

6) Make an offer on it, with the numbers you are comfortable with and run with it. Offering onto a property is a lot different than getting that offer accepted. Just remember, the "deal" is made on the purchase side. 

If all this seems like too much work, here are 2 options.

1) Put the money into the stock market, or 

2) PM me the address, so I can go and visit it and if it pencils out, I will buy it, and make it cash flow just fine for my taste.

@Russell Brazil Like I offered, the less experienced usually get beat up during transactions.

This conversation humors me. As a full-service agent and FSBO advertiser, most FSBO sellers don't understand market data and trends to offer up their home correctly in price or in marketing savvy. Yet they are so worried about saving a buck that they focus mostly on commissions, because they don't feel they have control of anything else. I see their pride get the better of them. Most of the time, these sellers spent to much in upgrades or are chasing coat tails of when market was once better but now is softer. I see most are too emotionally involved in their properties and out of desperation drop price too hard each step (because it wasn't priced correctly), think marketing doesn't matter much or get eaten alive during inspection phase. It all comes back to available time, economies of scale, systems, and ability to walk away. If you know how your market works, then you can get it done. I see most FSBOs lose more during the transaction than they would have by having an agent on their side doing the marketing and for skill in negotiation. Once FSBOs get into a contract most are amazed at the lack of communication toward them, but most don't know any better, so they accept it. I sold my last home as a FSBO before becoming a Realtor worrying about every penny. Now, it is just a cost of doing business. It makes laugh every time I see a FSBO list their home as such but use a cell phone to take pictures, use a sign from Home Depot, write 10,000 words on Zillow, only include 5 photos online, and then are ok with dropping their home $10k because it isn't selling. Most would save themselves a lot of grief by just hiring a Realtor.

@Scott Ferguson It all depends on what you want. There are a lot of naysayers out there. Do what you want and then if its not for you let your license lapse imo. I am the same type of Realtor you want to be it sounds like. My thought is you have to consider what your time is worth, for me it is 100% worth it. I have my license in OR & WA, a W-2 position, and I help others as I am available. When representing others, I am straight up about my W-2 position to my clients and all tell me they appreciate it. I use it as a selling tool even as "I practice what I preach and since I have other income, I don't HAVE to get paid right now, so I can help people get the best deal, even if that is to walk away." For myself, when I see a property I am interested, I go see it. I don't have to wait for anyone else. Getting my license also opened doors to mentors and a side of the business I wouldn't have otherwise seen. No different than any other industry. Anyone can play plumber, but being a plumber and doing it profitably is usually different. Be aware, each brokerage is different. Some are better at building a team brand, some are better at training the residential Realtor, and some allow you to be your own business and have a more of a DIY attitude. And there are different business models of each. I am by nature a DIYer so that model works with me. As a Realtor, I pay almost nothing in fees to my brokerage compared to everyone else I have talked with, but my brokerage is not a big brand, I don't have a built in-assistant/transaction coordinator, there is no training program except the school of Hard Knocks, and most of my marketing I have created myself. I get insight from my mentor/principal, other agents, Kevin Ward, and Tom Ferry. But the best method is what I already knew from being in sales: be fair, treat people how I want to be treated, and appreciate them. Steve

@Tony R Fox I am a DIYer. If I had it to do over again I would get my RE license ASAP, and get W-2 income because it is easier to get a loan with it starting out, diversify employer benefits to save/invest, then save for a down, buy your first residence, get paid as your own Realtor, then flip as a rental asap. And keep doing it, having rentals is still work. What did I do? I was a wanna-be investor for 10+ years, hoping and wishing, then got my license 3 years ago (life happened), then did deals to raise cash, then bought FHA 2 years ago, then did more deals to raise cash/pay down debt, then decided to rent my house instead of live there because life happened again and I wanted less space. Now I still have W-2 income + RE income + rental income and my renter pays my mortgage AND for my apartment. In hindsight I waited too long to get my license and get experience in the business. Biggest things I have learn so far is when to walk away if numbers don't make sense and be ok with it, even if mid-deal; when finding one that is a smart purchase, just grabbing it, biggest, trusting my gut...it's only more zeros. I have found, I made the best decisions when I has skin in the game. I didn't want to become a landlord, but because of life, became one and I now see is actually a very good thing. Looking for my next deal now.