Author Topic: Online brokerage, thoughts for first time investor?  (Read 408 times)

mozar

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Online brokerage, thoughts for first time investor?
« on: August 24, 2019, 10:41:28 PM »
Has anyone used redfin or something similar? The reviews I have seen seem geared towards first time home buyers.
I will be doing a lot of searching mls myself. The lender I'm going to talk to first has an investment program where they walk through the numbers with you (cap rate etc) so I don't think I'll need a realtor who is also an investor. My main interest in a realtor is their negotiating ability.

Archipelago

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Re: Online brokerage, thoughts for first time investor?
« Reply #1 on: August 25, 2019, 12:29:10 PM »
Has anyone used redfin or something similar? The reviews I have seen seem geared towards first time home buyers.
I will be doing a lot of searching mls myself. The lender I'm going to talk to first has an investment program where they walk through the numbers with you (cap rate etc) so I don't think I'll need a realtor who is also an investor. My main interest in a realtor is their negotiating ability.

To clarify, you're looking to purchase an investment property? A good option is to find an investor friendly agent. To do this, interview a few agents and see how much they know about real estate investing. A common misconception (also held by many, many realtors) is that if a property covers your PITI, it's a good investment. You've got to understand ALL the costs of ownership to properly evaluate an investment property.

Redfin is fine as a search site. Zillow and realtor.com are okay too.
« Last Edit: August 25, 2019, 12:32:37 PM by Archipelago »

macmoneysaver

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Re: Online brokerage, thoughts for first time investor?
« Reply #2 on: August 25, 2019, 06:12:35 PM »
@mozar

 I agree with @Archipelago,

An investor friendly agent is key (and perhaps one that is a property manager too).  An agent can help you find the deals that are not on MLS, or not there yet.  They can also help you navigate the world of short sales and foreclosures.  A key service they provide is the ability to do a market survey based upon it being an investment property and not a owner-occupant property.  They can really lead you in the right direction and help you know what similar properties went for.

Also, if you have never analyzed a property before, they can help you analyze it for the costs of property management, taxes, insurance, CAPEX, repairs and maintenance, vacancies, etc.

Yes, they do get a fee, but they earn it.  Also, 3% of a 30, 50, 80, or even 100K property is not that much.

Still further, they can likely recommend good property managers, handymen, electricians, and plumbers (if you need them).

Good Luck to you.

Archipelago

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Re: Online brokerage, thoughts for first time investor?
« Reply #3 on: August 25, 2019, 07:10:57 PM »
@mozar

 I agree with @Archipelago,

An investor friendly agent is key (and perhaps one that is a property manager too).  An agent can help you find the deals that are not on MLS, or not there yet.  They can also help you navigate the world of short sales and foreclosures.  A key service they provide is the ability to do a market survey based upon it being an investment property and not a owner-occupant property.  They can really lead you in the right direction and help you know what similar properties went for.

Also, if you have never analyzed a property before, they can help you analyze it for the costs of property management, taxes, insurance, CAPEX, repairs and maintenance, vacancies, etc.

Yes, they do get a fee, but they earn it.  Also, 3% of a 30, 50, 80, or even 100K property is not that much.

Still further, they can likely recommend good property managers, handymen, electricians, and plumbers (if you need them).

Good Luck to you.

I can't second this enough. A good RE agent actively seeks off market properties. If they aren't doing so and only sending you automated MLS searches every morning, they are not providing enough value to an investor. The best deals are the ones off market.