Comments on: Don’t get emotional about rehabs

By: Jeanie Hoholik ~ Twin City Real Estate Chat

Jeanie Hoholik ~ Twin City Real Estate Chat — Sat, 28 Jun 2008 06:33:46 +0000

Lucky me! I have the opportunity to just enjoy North Minneapolis, along with my client. We cruise around in our convertibles (TT and Miata)… black and red, respectively.) We cross the lines when it comes to being creative and tough. We are the chicks that people wonder about. Yee Ha!

By: Scott Ficek

Scott Ficek — Wed, 02 Jan 2008 02:08:58 +0000

Hey Chris-
Great points. I do agree. In the post, I guess I implied everything else in the equation was the same. The properties in the article are within 2-3 blocks of each other, so neighborhood variables are moot.

As I looked at the properties on paper this weekend, the one variable that we didn’t take into account is that the property we liked (#1) has 4 bedrooms versus the “best deal” house only had 2.

So now, the customer needs to chose between larger capital appreciate or larger cash flow. (Neither is really a wrong answer, it just depends upon what he prefers/wants).

Thanks for the comment and your thoughts.

By: Chris Lengquest

Chris Lengquest — Wed, 02 Jan 2008 01:55:31 +0000

Scott – I’m going to respectfully disagree with you here…if only to a point.

First, your job in arguing a different property is good for your client. It makes him/her defend, think, figure. That’s part of your job.

Second, raw numbers alone simply cannot tell the story. Sure, maybe you’ll enter with more equity on Property A than you would on B. But if B’s neighborhood is turning around, has new development by it, just had a major infusion of school district money, and a major employer landed a major contract…well, I’d take that over A.

At least sometimes. I guess what I’m saying is that I agree with you. But that I also know that same experience that keeps you focused on the numbers should be flexible enough to let you see what most can’t see. For better or worse.

Am I making sense here?