[ErikTyler80Member@eriktyler80Join Date: 2009Post Count: 10]

December 14, 2009 - 3:00 am

As with all things, applying a broad brush to a topic isn't always accurate.

I operate a flat fee agency ($5,950), and as it's my own business, I certainly aim for the highest possible price, as this is what builds a reputation, which in turns generates additional business.

I currently hold the all time, record sales prices in 4 suburbs in Canberra – which is more than most other agent's can attest to.

Obviously there are agents who work on volume, and don't care about the extra few thousand dollars – but I would argue that these agents are fly by nighters, and only survive until their reputation catches up with them.

Furthermore, it's exceptionally rare to achieve $20,000 over the asking price, or higher than an advertised price. Even if this exceptionally over the range price was achieved, it would only gross the agent an extra $600.

An agent charging 3% commission, would only receive $150 gross for negotiating an extra $5,000 – so the financial incentive for a full fee agent is exceptionally minimal when negotiating the final price.

Regards,

Erik Tyler – Managing Director, LIVEin Real Estate
http://www.livein.net.au

[ErikTyler80Member@eriktyler80Join Date: 2009Post Count: 10]

August 20, 2009 - 11:43 pm

TheCrest;

Only expect tenants to be as good as your property.
Don't accommodate the unemployed.

I couldn't agree more with these 2 points (especially the first)

[ErikTyler80Member@eriktyler80Join Date: 2009Post Count: 10]

August 19, 2009 - 6:17 am

Trust me, it happens to everyone – I own multiple investments, as well as my own real estate agency (which they are all managed through).

I'm currently dealing with 3 horrid tenants (in 3 separate properties) – they were highly vetted, fantastic tenants on paper, but once they move in they can, sometimes, turn into a nightmare.

As with all things, the highs should outweigh the lows (in the long term).

Picture 10 years time, when you've achieved a 70% (minimum) growth, whilst having your tenants pay the lions share of your mortgage payments – makes it all worthwhile then!

Erik Tyler – Managing Director, LIVEin Real Estate, http://www.livein.net.au

[ErikTyler80Member@eriktyler80Join Date: 2009Post Count: 10]

August 18, 2009 - 10:55 pm

Haha – I understand completely. But you're playing with big sums of money, so it's best to start with a solid base of knowledge.

[ErikTyler80Member@eriktyler80Join Date: 2009Post Count: 10]

August 18, 2009 - 6:36 am

My two cents – start small. As with everything, learn to walk before you run.

Take on a small extension reno (buy a 3 bed with a good land size, and ad a bed / ensuite / living space). This will give you a very good idea on construction + fitout costs.

From here, you will learn some of the tools of the trade, and if you're very lucky, will form a relationship with a good builder (trust me,  if you find a good one, latch on for all you're worth!)

Hope this helps.

[ErikTyler80Member@eriktyler80Join Date: 2009Post Count: 10]

August 18, 2009 - 6:30 am

Caveat emptor  … buyer beware!

There will always be those who can make the determination purely on location, photos, and building reports; but I've walked away from many a deal once I've actually been inside the property, whereas on principal I would have purchased.

As Maree said, flights are cheap – and as a % of the cost of the investment, it's a very small outlay for genuine peace of mind.

[ErikTyler80Member@eriktyler80Join Date: 2009Post Count: 10]

August 18, 2009 - 6:17 am

I drive a 2006 BMW M3, and my partner drives a 2006 bright yellow honda S2000.

Erik Tyler, Managing Director LIVEin Real Estate – http://www.livein.net.au

[ErikTyler80Member@eriktyler80Join Date: 2009Post Count: 10]

August 18, 2009 - 5:42 am

I agree with a few of the comments above – namely that 20% of agents make 80% of the money!

My advice would be to work for the biggest, flashest agency for your first 12 – 24 months, you will have a level of training that will be unsurpassed.

My initial training was with a company called Foxtons in London – the pay was fairly rubbish as an agent, but the experience was extraordinary. After 2 years, I came back to Australia and set up my own real estate agency in Canberra – my gross commission currently exceeds $30,000 per month, with a property management division sitting at over $520,000 a year turnover.

This is one of those industries that require an infinite amount of patience, social interaction skills, time management and, above all, an affinity with people. If you have exceptional people skills, then you stand a chance at making it big.

It's also about the local market (will your agency give you a small patch, and expect you to compete with agents who have been working that patch for years?).

It takes initiative, and "out of the box" thinking to make a sudden impact in an area and secure listings – but it can definitely be done.

I'm more than happy to answer any specific questions.

Erik Tyler – Managing Director, LIVEin Real Estate, http://www.livein.net.au

[ErikTyler80Member@eriktyler80Join Date: 2009Post Count: 10]

August 18, 2009 - 5:17 am

Hi Austin,

I own 6 investment properties in Canberra, and my accountant is The Firm (www.thefirmonline.com.au).

Call and ask to speak with Paul Glass or Andrew Eggleton, they are absolutely brilliant.

We also own a real estate agency (LIVEin), and they manage the logistics of the business fantastically as well.

I could not recommend them highly enough.

Erik Tyler – Managing Director, LIVEin Property Management, full service for a low 7%!

[ErikTyler80Member@eriktyler80Join Date: 2009Post Count: 10]

August 18, 2009 - 5:09 am

Hi jtsroberts,

I've just joined this site as I'm looking for other investors / real estate agent's etc to network with.

By way of introduction, my partner and I own 6 investment properties in Canberra, and we also own a real estate agency called LIVEin

Our property management division currently manages 290 properties, and we charge 7% management fee's, while utilising professional photography, high definition video tours, and the assurance of having the same property manager for life. We have only lost 2 clients (both of which we disengaged).

I don't mean to highjack this thread with self-promotion, but I completely understand your position in being frustrated at the huge fee's charged by property managers in Canberra, whilst not giving the best level of service.

To the moderator – I apologise if this is outside of the rules and regulations, please be assured that I am not in the habit of self-promoting, and can assure you this won't be a continuing theme.

Property investment is close to my heart, and I am frustrated for investors at paying high management fee's.

I would obviously be delighted to discuss further with you, so please visit http://www.livein.net.au to see how we do things differently

Cheers

Erik Tyler – Managing Director, LIVEin