Questions about the Irvine Housing Broker venture

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irvine_home_owner_IHB

irvine_home_owner_IHB

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I realize there is a thread about this in the Water Cooler but I think there are some serious questions about this getting lost in the angst that many of us would like answers to.



Let's try to keep the drama in the other thread, but for serious discussion, can we do this here?



What I want to know is does this decision indicate some prediction by IR that Irvine housing will turn around in the near future?



The reason he stated for doing this was based on valuations of housing outside the Irvine area yet he is choosing to market this on an Irvine-centric target audience and even named it after Irvine. It doesn't make sense to me to form an RE company that recommends buying property outside of the area it should be specializing in.



It just seems to me that Larry may be preparing for an upswing in Irvine RE although his reasons for getting into the business is based on non-Irvine RE... or did I read the blog wrong?
 
I don't believe IR thinks "Irvine" is bottoming out...however he and Chevy believe there are enough cashflow positive investments on the market.



Anyways, I thought it was an April Fools joke as well.



If anything, I think IR just approached it in the worse possible way, if anything, he should have marketed the venture as a Real Estate Investment Fund. He could do it on his own w/a little help from IR2 or whomever can cut his cost in brokering the deals. Alas, he chose some dude name Chevy (I purposely spell his name that way).
 
My business partner at work is still invested in his REIT.

They now own multiple homes in the IE. Before it was just the notes.

Just keeping them rented and maintained is a HUGE expense. And the moment one is empty.

Say goodbye to anything thats removable inside.

They even take used Water Heaters.

Factor in Squatters, Clownhouses, Unpaid Water and Power bills.

Re-Landscaping and repairs. It never ends.

I really feel sorry for him. It is a really bad way to lose money.

It might look good on paper. Rental Parity and all that fancy math.

But owning these properties in this current climate is near impossible.

And anyone that thinks they can. I would say SHOW ME THE MONEY.



Can you say "I am a SLUMLORD in the 909".
 
I have a friend who has been buying and flipping in the IE for about a year now. So far he has done 10 deals and averages $10K-$15K per deal. There was one that was a break even. He's got his license so he only has to pay a buyer's agent fee.
 
[quote author="bltserv" date=1239238910]Just keeping them rented and maintained is a HUGE expense..</blockquote>


wooo hooo....i am not the only sucker that have a rental property in IE
 
I am probably going to do 1 or 2 real estate transactions this fall and the whole IHB thing got me thinking about RE fees.



According to this article by IR2:



<a href="http://www.irvinehousingblog.com/blog/comments/the-new-real-estate-sales-business-model/">http://www.irvinehousingblog.com/blog/comments/the-new-real-estate-sales-business-model/</a>



... the 6% model is outdated.



So what is the best way to charge fees for RE service? I do agree with IR that there should be some type of contracted service aspect where fees are negotiated based on work performed. The more time you take from the Realtor, the more you pay. But there should also be some sliding scale based on the size of the transaction. Marketing a condo is probably just as much work as marketing a large SFR but the commission can be 1/2 or even 1/3 as much.
 
Larry and Zovall (and all) -



I have a couple of questions regarding your venture and would like to make a proposal to you.

I'm choosing to do it here, because if it came through private messenging or other off-line communications, transparency would be lost, and it would risk another maelstrom like we had this weekend...



Having taken some time to digest the week's proceedings, here are the general questions that I still see as unanswered:



1. For the "Irvine Housing Brokerage," are you actually opening a brokerage (under a broker's license) or are you just capturing leads generated through the blog and directing them to someone with a sales license for a referral fee?



2. Are either of you seeking to get your own license, either sales or broker's?



3. Do you have an exclusive agreement to work with Shevy, or are you open to working with other agents/brokers?

If you do have an exclusive agreement, how long is that arrangement for? Is it for both buying <strong>and </strong>selling properties?



<span style="color: blue;">=============</span>



I do find myself conflicted in how to proceed personally. While I appreciate that you've welcomed me to continue my assistance/("pink spoon" marketing) on the forums side of your site, it is increasingly clear that I'm either:

a) taking business away from <strong><span style="color: blue;">your </span></strong>endeavor, and biting the hand that feeds me.

or

b) spinning <strong><span style="color: blue;">my </span></strong>wheels.



Those are two poor options, and they are mutually exclusive, unfortunately...



<span style="color: blue;">=============</span>



So on to my proposal...



<strong>I'm interested in working together with you, representing individuals that come to you strictly for listing their home for sale, here in the local area.



If I can match/beat terms that you've been offered, are you open to this kind of arrangement?</strong>



Some obvious advantages:



- I wouldn't seek to make this an exclusive arrangement, as I think you (and more importantly, your clients) would benefit from having options.

From experience, different sellers "click" with different people, and you could increase the likelihood of securing your income by recommending that a potential seller speak to a couple of sources and choose for themselves. And when it comes down to it, I like my odds.



- Apparently Shevy is gearing for buyer leads with his analysis properties that have been posted on previous weekends. Let me be clear that I'm not seeking those leads. My own expertise is much more centralized to our local area, not the outskirts of the county and beyond. That is where your best investment direction is headed, so far, so I think there could be a peaceful coexistence.



<span style="color: blue;">=============</span>



If this doesn't sound reasonable, or if you've already signed some sort of agreement, let me know.

Likewise, if the terms you require are beyond what I would consider equitable, I appreciate the chance to say "No" and you'll be free to work with whom you please.



Just thought I'd throw my hat in the ring, as this door has now been opened.

Thank you for the consideration.

-Scott (IR2)
 
Thank you for posting, Scott, I wanted to know where you were at with all this as many of us see you as an integral part of the "old" IHB helping posters with their RE needs.



Like yourself, I do hope we can make this a public discussion. Although IR/Zovall may prefer private communication, this really should be done here to give everyone a chance to post their input and feedback. It concerns me that no one involved has replied in this thread because this is a very important issue.



I'll grant them that they may be discussing how they would like to address our concerns but they need to respond eventually.



BTW: If you can, what is your take on the 6% model?
 
[quote author="irvine_home_owner" date=1239324884]Thank you for posting, Scott, I wanted to know where you were at with all this as many of us see you as an integral part of the "old" IHB helping posters with their RE needs.



Like yourself, I do hope we can make this a public discussion. Although IR/Zovall may prefer private communication, this really should be done here to give everyone a chance to post their input and feedback. It concerns me that no one involved has replied in this thread because this is a very important issue.



I'll grant them that they may be discussing how they would like to address our concerns but they need to respond eventually.



BTW: If you can, what is your take on the 6% model?</blockquote>


I've posted that previously on the main blog, concurring with Larry's previously-stated view...



<a href="http://www.irvinehousingblog.com/blog/comments/the-new-real-estate-sales-business-model">http://www.irvinehousingblog.com/blog/comments/the-new-real-estate-sales-business-model</a>
 
[quote author="IrvineRealtor" date=1239322230]

1. For the "Irvine Housing Brokerage," are you actually opening a brokerage (under a broker's license) or are you just capturing leads generated through the blog and directing them to someone with a sales license for a referral fee?</blockquote>


Right now it is a referral, but we will form a DBA under our own banner soon.



<blockquote>

2. Are either of you seeking to get your own license, either sales or broker's?</blockquote>


Zovall is already a broker, Shevy works under a broker, and I am going to go take the test.



<blockquote>



3. Do you have an exclusive agreement to work with Shevy, or are you open to working with other agents/brokers?</blockquote>


Shevy is going to manage that entire side of the business. Other agents will work under him (unless we change our minds...).



<blockquote>

If you do have an exclusive agreement, how long is that arrangement for? Is it for both buying <strong>and </strong>selling properties?</blockquote>


We can discuss this in person.





There is plenty of real estate in Southern California, and we have no interest in trying to take the potential clients you have formed relationships with on this board. We want people to work with honest brokers who will provide good service. We would be very comfortable with you serving these people.



Zovall, Shevy and I would be delighted to sit down and meet with you soon to discuss how we might work together. In fact, we want to meet with you soon because the number of leads that one post generated was larger than we expected (it is still a bad time to buy, after all). Shevy may need help soon.



Contact me via email to set up a lunch meeting between the four of us.



Larry
 
[quote author="IrvineRenter" date=1239327614]

(it is still a bad time to buy, after all).</blockquote>




NO! NO! NO! This can not be! We have been assured, (actually lambasted), with the fact that IrvineRenter has "SOLD OUT", and has changed his message to profit from his popularity. And now you say it is still a bad time to buy? You are consistent, true to your words, and have integrity? I am so confused.







And to top it off, you may include Deuce? What will we have to get upset about?







I know, your photos. We can still nit-pick on your photos. Wah-h-h-h-h-h-h!
 
[quote author="awgee" date=1239402459]



I know, your photos. We can still nit-pick on your photos. Wah-h-h-h-h-h-h!</blockquote>


Wait, we can still bag on the headshots?



:coolsmirk:



Does this mean Shevy will come out and play, too? I have some new LOL's to greet him with.



Anyway, I'm also glad folks are getting their questions answers and their fears are being alleviated.
 
[quote author="IrvineRealtor" date=1239322230] I'm interested in working together with you, representing individuals that come to you strictly for listing their home for sale, here in the local area. </blockquote>


I'll cut out the middle man if my parents ever sell their Irvine house, and send them directly to you.
 
[quote author="Sunshine" date=1239459284]

I'll cut out the middle man if my parents ever sell their Irvine house, and send them directly to you.</blockquote>


If Deuce decides to hang his license with the new brokerage then you can't cut out the middle man / IHB, as far as I know. Maybe he can clarify.
 
What happen to the <a href="http://'http://www.irvinehousingblog.com/blog/comments/irvine-housing-brokers/#49550'">blog post</a> about the irvine housing broker?
 
[quote author="halfnote19" date=1239950569]What happen to the <a href="http://'http://www.irvinehousingblog.com/blog/comments/irvine-housing-brokers/#49550'">blog post</a> about the irvine housing broker?</blockquote>


Because the DBA Irvine Housing Brokers is not yet registered with the DRE (something we are doing,) a weenie realtor has complained. Rather than be accused of any kind of impropriety and risk the wrath of the DRE, we have removed the post until such time that the brokerage is registered. Zovall is a broker, but since the name "Irvine Housing Brokers" is not yet registered, we must take a month or so to get the paperwork in order.
 
[quote author="IrvineRenter" date=1239953976]a weenie realtor has complained.</blockquote>


For the record, it was not THIS weenie realtor. I'm looking forward to our meeting and hope to work something out. See you then.
 
[quote author="IrvineRealtor" date=1239958697][quote author="IrvineRenter" date=1239953976]a weenie realtor has complained.</blockquote>


For the record, it was not THIS weenie realtor. I'm looking forward to our meeting and hope to work something out. See you then.</blockquote>


No, we actually do know the name of the complainer. We know it isn't you. I hope nobody thought I was implying it was. You wouldn't do that. Interesting that a blog post can generate so much attention...



See you tomorrow.
 
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