All Forum Posts by: Steve Milford

Welcome! @Josh Gold It is always good to connect with area people!

That's great! You are well on your way!

To me, fun deals are the creative ones. Everyone I talk with is worried about their cash, yet to me getting something done without offering cash and getting everyone to agree is enjoyable. The key is finding what the hot buttons are, and be willing to walk away no matter what. Key to remember is that everything is negotiable.

In a past deal, my buyer wanted certain repairs done. Seller refused, yet countered and offered cash for repairs at closing. We countered to just accept that same amount for closing costs. They offered in a different fashion, we accepted in our own fashion, done deal. Seller had previously wanted more cash for purchase, I countered that we would walk - it turned out to be an empty request as they accepted my "No."

To become better, try estate and garage sales and negotiate, negotiate, negotiate. This environment requires you to think fast.

Keep reinvesting your cash is my opinion; minimize cash out; and leverage properties against each other.

I am not a landlord, though am a Realtor. To me, maximum flexibility and lowest rate, since I have to carry costs until I get paid. For me that was going local.

If it was me, I would do what I did, become a Realtor. The cost of entry is minimal and the education that you gain completing your own deals is huge. Once you have a license, you can go off your gut based on your own market versus relying on what others think. And since you will have the money to not work for others for a while, you can help others and or yourself put together deals and make money at the same time.

In becoming a Realtor, find a brokerage that will allow you to do what you want. 

I.e. I interviewed more than 15 brokerages before "hanging my license". Now, I do what I want, within reason of course. I set my own fee structure, I have control over all my overhead, AND I work with who I want (I work with clients that are willing to do what is necessary - I don't chase them). That is the freedom I wanted. 

Ironically, now I get lots of recruiter calls although I turn them all down as I structured my contract with my brokerage like I would with any deal, ahead of time, before getting started. That is where the money is to be made. Let me know if I can help further. 

Yes, I am a Realtor.

It's all about the numbers.

1st, no one is going to bother with showing you properties until you get your financing in order. There is nothing wrong with FHA, yet how much skin are you going to put in the game? That is the big question. Trying to slice every deal thin in your favor won't win you any deals.

2nd, unless you are offering mostly or all cash, there is little flexibility in the price. There is just plainly too little inventory. And when buying at full price can you afford upkeep? I see this a lot with SFR-people get into a home because they get told its a great idea, yet when water heater goes out it sends them into a tail spin.

3rd, look at your total cost of ownership of and profit from the property. Does a particular property make more sense than investing in the stock market?

4th, go look at lots of homes/units. Pictures do not do a home justice. I have seen many homes that have awesome photos yet when you get there it is a dump. You need to smell it, see it, etc. Once you feel comfortable with the type of property you are trying to buy, AND you have a Realtor you enjoy working with, THEN extend offers. And wait until you have viewed lots before you start making offers sight unseen inside. You still need to drive by and see the neighborhood.

5th, does your team of Realtor and Lender have your best interest at heart? This is a business decision. If you are not getting what you need, you have to be willing to fire them and find another. Before becoming a Realtor, I have fired both Realtors and Lenders and walked away from deals that turned sour. Again, its all about the numbers, do they make sense? And don't get pressured into using a Buyer's Agreement with a Realtor. I have seen more instances where it is abused and Realtors provide crappy service versus not. If a Realtor or Lender is new in the business, are they hungry and do they answer the phone in the evenings and weekends? The lenders that I work with know that I often call them during non-business hours because I build offers as my buyer's like properties. I am unwilling to work with any lender that won't give me their cell number.

Maybe I am old school, but I take you on your word. If I get the short end I will never work with you again - nothing personal. I work with who I want too, not who I have too.

Lastly, time is on your side. My buyer's that are willing to wait and take their time evaluating a property get the best deals, even in this market. After you know what you really want, then you can extend an offer without seeing the inside. The real work begins after the contract is accepted anyways, yet you need to be on the ball to get it executed correctly. The key to any contract is how it is written.

Let me know if I can help you.

Steve

Here is my thoughts...consider a deal as if it was your own money. And then when you find it, you can pitch it to someone else.

1) Hook up with a Realtor to find what the comps are in the area for the home you are seeking. Just remember that everyone wants to make money here, so put their fees into the deal. They also might might be expert negotiators. Every Realtor is different and most charge similar higher fees, or you find some like me whom is creative.

2) Find a general contractor or someone else you know that is a great estimator and pick their brain about problems/solutions, how they structure their own fees, and why they do it that way. Some will take a look at your potential deals as well - though compensate them for their time.

3) Look at the cost of the deal when you buy it and see if there is enough profit in it after renovation/rehab and Realtor fees. 

That's it. Learn with homes that are currently in the market, and then go find one that isn't. Most investors I know make their money from homes not yet on the market. Once it is on the market - it is too late, unless it is seriously distressed.

I'm in!

The best advice I have ever heard is 5-part. 1) Pick a marketing method and follow it to a T. Measure it for ROI. Adapt and then prove. 2) Get your contact info in order with some kind of online presence. 3) Get a box of 250 count business cards and give them away as fast as you can 1 at a time. And then repeat. 4) Don't be afraid of the word "No" or naysayers. 5) Find your niche - which may change as you help more and more people.