Posted by phil fernandez on July 10, 2001 at 20:40:50:
I’m excited that you are getting into some apartment rentals. Buy em right, manage em right and wait. Before you know it you have your retirement setup.
Sounds like this agent isn’t agressive. I’d get rid of her. If you are interested in the 6 duplexes and your agent doesn’t even return phone calls, I’d call the listing agent directly and explain your situation with your agent. No sense losing out on a deal because of a lazy unmotivated realtor.
What you will find when dealing with realtors on investment property is that they do not understand how they work. They don’t seem to realize that in order for the deal to work for the buyer that there has to be cashflow from the property. The realtor typically lists and trys to market income producing real estate the same way they would market a single family house that a consumer would buy to live in.
Seldom in the expenses of an income producing property will there be any allowance for a reserve for replacement. The realtor must either think that things never get old and need replacing or they think you have deep pockets and that replacement money can come out of your pocket. Never ever pencil in a deal without putting in an adequate reserve for replacement figure.
Another thing that you will hear from agents is that the rents are low and you can raise them once you own the property. My response to the agent is, " I buy on performance not on potential or speculation. " By performance I mean what the property is currently producing. If it were that easy to increase the rents, the seller would have already done this.
So you see agents to me just get in the way especially when you are looking to buy income producing real estate.