Real Estate Investing with Prospect Group: Recent Episodes
Vartan A.
How we got more than 2 million dollars on a beach house in Manhattan beach. Everyone is still wondering how we were able to break records in the neighborhood with that house. Gary Richardson is a South Bay Luxury Real Estate agent who brought us the house. Once we fixed it, Gary listed the house for us and was able to get top dollar.
Some real estate agents think wholesaling is illegal. Because they think that you have to have a real estate license and you have to have a license under a broker in order to buy and sell real estate. But, in California that is not true. A lot of sellers want us to buy their property directly from them. They don't want to deal with a real estate agent. They just want a cash offer. In that case, we will lock up the property at a certain price. We'll open escrow and we'll find out that we can buy it as investors, but we may have friends in the business or other real estate investors who would be willing to pay the seller's named price. We'll add a fee -- assignment fee -- to the transaction in escrow. We will reassign the contract in escrow to the new buyer. That in a nutshell is wholesaling a real estate deal.
If you are a homeowner or a realtor and want us to look at a deal in Southern California -- send us an email at contact@prospectgroup.net.
If you have ever wanted to know what Wholesaling is all about. If you wanted to know what it means and how to be successful at it, we have all the answers. Amber Rose Kandarian breaks it all down and tells us why working with a Real Estate Investment Company is the key to success.
Prospect Group buys properties across Southern California. They work with an elite group of agents who bring them deals, represent them in buying the property, and eventually when it is fixed and they also represent Prospect Group as a listing agent in the sale of said property.
Meet some of their favorite agents who are real estate industry royalty who continue to work with Prospect Group year after year.
Gary Richardson | Strand Hill Co-Founder | Christie’s International Real Estate
Teresa Fuller | Compass Real Estate
Olga Safonoff | Pinnacle Estate Properties, Inc.
Bruce Jay | Bruce Jay Associates Real Estate
Carole Gillie | Compass Real Estate
Realtors often ask: how to work with an investment company and make more money?
We talked to PG acquisition and investment specialist Greg Davtyan who gave us some useful tips for getting started. Greg Davtyan says anyone can bring Prospect Group a deal. He has three tips.
-
Be Smart About Exit Value Realtors must be able to put themselves in an investor's shoes and do their diligence about the market and the trends. At Prospect Group, they take into account the ever-changing construction and contractor costs when considering exit value. It’s the job of the acquisition specialists to make sure that the offer that they provide a realtor is an offer on which they can perform.
-
Use Data Use data to help make your case for pricing when working with investors or companies like Prospect Group. There are a lot of realtors who work with PG and make a lot of money. The level of success has everything to do with how efficient the realtor is with the type of deals they offer, the type of background work they’ve done on the deal, and the effort they put in to analyze the deal before sending it out to the realtor. Greg says we know who has done their homework and are more likely to work with them.
-
Know How to Run Comps A realtor must know their numbers. There's no one formula. Every property is unique to itself. Consider what the property needs, the condition it's in, and the market itself. Know how to analyze a specific area and what a property should really go for at exact square footage with or without a pool. Every area is unique in its own kind of pocket, so agents really need to do their due diligence based off of which area they serve – not just based on zip code based on the neighborhood.
Greg says, “I don't expect agents to know exactly what I'm going to spend on the property, or I'm not going to expect them to know exactly where we have to be price-wise, but I would like to know that they have a general idea of where I would have to be because that would show me that they can actually guide their sellers to take my offer.” Greg says, there is money to be made, “if you're a realtor and your niche is not selling luxury properties. Then you can make your niche the beaten down properties. If you market to and get properties that need a lot of work – that would make Prospect Group your permanent client.
If you want to contact us write us at contact@prospectgroup.net or prospectgroup.net/realtor
If you are wondering whether you should buy a house or a property in 2022, particularly since interest rates have been going up, we have some answers, tips, and ideas that will help you make a decision.
The first thing to consider is the reason for buying. If the property will be a resident and a permanent home, it’s a good idea.
The next question is, do you like the property? Greg Davtyan, acquisition manager and investment specialist with Prospect Group an investment group that buy home fast for cash says, take time to think about it. Make sure the process is not rushed and the decisions are not emotional ones.
“Be sure you can afford the property and that you are qualified to make the payments,” says Davtyan. If you can afford it, it doesn’t matter where the market goes. The real estate market is going to have its ups and downs but historically values have gone up over time.
For most people, the challenging part of purchasing a property is the downpayment. Davtyan says, with rents steadily increasing in Southern California, saving for a down payment to buy a property will pay off in the long run.
“Even if it means you need to do something extra on the side to give you the extra boost to be able to put at least put a little down so you can buy a place,” he says it’s worth it.
It’s a difficult sacrifice to make but the benefit of owning a property is knowing that there’s a fixed payment and nobody is at the mercy of a landlord increasing the rent due to inflation or supply and demand.
A property builds equity over time that can help an owner take out money and/or use it for other investment vehicles. Over time, even if the market dips, the value of homes historically has climbed back up.
Before making a purchase be sure to make an educated offer based on research and the guidance of a real professional, someone who is truly helping in the transaction and negotiation process.
If you are in the real estate industry, you already know it’s hard work. Whether you’re a realtor, an investor, or a wholesaler, having longevity in the real estate business requires consistency even when things aren’t working out in your favor. We wanted to know, what does it take to create momentum and be successful in the real estate industry? Greg Davtyan is a property acquisition and investment specialist with the Prospect Group. They buy mostly off-market fixers, they buy homes for cash fast in Southern California. Davtyan has worked in finance, he’s been a realtor and now works in investments and acquisitions. He says, it takes a lot of discipline and a lot of hunger. “I think if you don't have that hunger to create a life that provides you to live on your own terms, or if you don't have kind of like your belief on why you're doing what you're doing, then it's going to be hard for you to do everything day in and day out with everything that real estate consists of, which is a lot.” A lot of realtors – especially those who are new to the industry – think that real estate is what they watch on HGTV or the glamorous life they see on social media. But that’s not the case. There is a lot that goes into transactions, negotiations, and the calculation of numbers. Watching an agent selling three, four, or five-million-dollar homes is inspiring. Many who are new to the industry think they too can do that immediately, but what they don’t see is the amount of work that realtors put in to get to that point. Here are some tips to keep you moving forward on your path to success. Positive Mindset/Find Your Purpose Identify what it is about real estate that you like. Get your mentality and beliefs in sync with each other on why you’re doing what they're doing. What is your mission, dream, and goal in working in real estate? Finding the answers will help you push through the tough days. Know your numbers A successful person who is in the real estate industry must understand the numbers and how much they impact a deal. Know how to run comps well so that you can set realistic expectations whether you’re representing a seller, a buyer, or working with an investor. Be Patient It’ll be hard in the beginning. Keep doing the work. Focus on progress, not perfection. Real Estate professionals who are looking to grow their business and scale can partner with investment professionals such as Prospect Group to sell houses for cash fast. Davtyan says, to be successful in a partnership with an investor, requires persistence. Not every deal that you pitch will work out and that’s OK. The key is to continue to stay motivated and to continue to pitch off-market and listed fixers. If you are interested in learning about how to work with Prospect Group or Greg Davtyan, contact us at contact@prospectgroup.net.
With the news of The Federal Reserve raising interest rates, there were many speculations about what direction the housing market would go. A few days before, the market had a panic attack says Artin Babayan with PrimeLending. He said, it was the worst day for interest rates since 2013. The Federal Reserve raised the rates by 0.75%. What will this mean for the housing market in Southern California? Babayan says, the Fed is trying to push us into a recession. They saw crazy inflation. They saw things going up so fast. By pushing up the rates they edged that off. Now, we'll see things level off and start coming down and then they'll lower rates to bougie that and find some kind of equilibrium there. That's what I think is happening behind the scenes. But, what that is doing to people is that it's increasing the cost of everything from credit cards to mortgages to car loans to any kind of financing. This is the underlying thing. What the Fed plays with is the discount rates which affect short-term borrowing rates so it doesn't directly affect mortgage rates but what happens is that when the Fed ups its rate it changes the outlook of what is going to happen in the market. The long-term 30-year mortgage reacts to that. The Fed is raising rates which are pushing 30-year mortgage rates up at a very fast pace.
Titles and Deeds in Real Estate Transactions in California
Conversation with Sabrina Meyer with Fidelity National Title
ABOUT PROSPECT GROUP:
We buy homes fast for cash all across Southern California. We are local buyers who care.
The Prospect Group team is committed to bringing value to the people we serve. We've been in business for more than 10 years and are proud of the positive impact we've had in the communities in which we live. Prospect Group partners with real estate agents to buy homes fix and flip for a profit. We do so by helping a homeowner who wants to sell house fast for cash and buyers looking to buy a new home.
We make a difference. We invest responsibly. We serve our clients.
Find us at: https://prospectgroup.net
Get in touch with us at: contact@prospectgroup.net
Follow us:
YouTube: https://www.youtube.com/channel/UCT2ehaae1XyGP6A5GKubMEQ
Instagram: https://www.instagram.com/prospectgroup/
Facebook: https://www.facebook.com/prospectgroup
LinkedIn: www.linkedin.com/in/prospect-group-1980a1199