How to buy a house in a hot market:

Fire your buyers agent (or don’t get one). You’re at a disadvantage with a multi-offer scenario.

Work directly with the seller agent.

Make offer with 2% credit to seller and 1% more commission for the seller agent.
Disclaimer before the buyers agents try to burn me at the stake:

Don’t do this if you don’t know how to represent your own best interests.

But if you know what you’re doing, this is the best way to win the house because it can be $10-30k that isn’t going to your agent.
My FIL has a property under contract in Athens GA under this exact scenario.

4 offers right at $370k. One was ours.

Other 3 had buyers agents.

Seller agent credited 2% ($7400) on top of our highest and best and he made an extra 1%.

We paid less, seller made more.

We won.
That sellers agent making $14,800 vs $11,100 was HUGE.

40% more commission and you think she doesn’t want to sell to us?

She told us exactly what other terms were important to seller.

We hit them.

Then he talked seller into taking our deal.
And her job is to make the seller the most money.

That 2% ($7400) that would have went to my agent went to the seller.

They ended up making $5k more than they would have over the second best offer.

It was a win for everyone except the agent we didn’t hire.
And most importantly - my FIL is going to own the damn house!

The three folks who hired agents to represent them as buyers are still looking.

Which method would you choose?

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More from @sweatystartup

15 Feb
Flight takes off in 90 minutes.

Ask me anything!
Flight took off. Flew 20 mins. Came back to Atlanta.

Now waiting to hopefully take off to Rochester but it’s a blizzard up there.

But I’m having a better day than this dog i spotted.
Flight cancelled. Voucher for Sleep Inn Atlanta airport. Google reviews are top notch 😂

7:45am flight tomorrow.

Waiting on the shuttle for 45 mins with these poor people. Image
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15 Feb
In real estate, revenue is the risk factor.

Two ways you can use it to your advantage.

A 10% increase in revenue has a much larger impact than you think.

If your expense ratio is 50% and expenses stay constant, your net operating income goes up by 20%.

And since your value is determined by NOI, your building can be worth 20% more money.
And if you have a loan for 75% of the overall value of your property, that 20% increase is all equity.

That gives you 80% more equity.
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11 Feb
Next time you pull up to a meeting in your $100k car, I hope you know the first thought of your potential partner is not:

"Wow this person does well, I need to work with them"

Instead, its:

"This is where the fees are going?"
Triggered a lot of folks with $100k cars with this one.

I’m just being honest about the thought that crossed my mind when a contractor showed up to give a bid at my home in his $120k F-350 Superduty Platinum.
I don’t have anything against folks who drive nice cars.

I personally think they’re a waste of money. A lot of people feel like me and think like the original post.

There is nuance, of course and this doesn’t apply to everyone.

If you can’t handle a post like this:
Read 4 tweets
10 Feb
A few entrepreneurial superpowers that aren’t talked about enough.

A thread.
Many high performers are assholes.

Being able to work with and manage difficult people puts you at a huge advantage.
Fear, pride, anger, excitement cloud your ability to make sound, logical decisions.

Making non-emotional decisions with impartial information is a superpower.
Read 9 tweets
8 Feb
A few reasons why I love self storage:

-Fragmented market with old-school competition

-Revenue spread among many tenants ($90/mo avg customer portfolio wide)

-Less than 5% increase in delinquency during pandemic

-No utilities, paint, carpet, appliances
What I don’t like about self storage:

Everybody else loves it too.
Self storage is not a land-banking play.

(Using it to sit on land for use doing something else later)

Even in major markets the rent outpaces class B multifamily with each less opex and capex.
Read 4 tweets
7 Feb
The life of an entrepreneur can be brutally difficult.

But nobody talks about it.

Time for a stiff drink and a few words on some of the most stressful periods in my life.

A thread.
The thing about being an entrepreneur is that there is nobody you can ask for help.

There is no boss you can call and dish off the really hard problems.
And there is no track-record or “way of doing things” that is proven.

So you have this constant nagging feeling that what I’m doing might not work and I might lose a lot of money.
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