Mission Forge

Bobby Jankovic

Welcome to Mission Forge where we engage one another, empower each other, and elevate the real estate world around us. read less
BusinessBusiness

Episodes

Commercial Real Estate Model is not right for Residential
Mar 22 2024
Commercial Real Estate Model is not right for Residential
A shift towards something already in placeCommercial real estate has operated this way for a long time. Commercial listings generally do not offer compensation to cooperating brokers of buyers. It does not mean that buyer representatives are not paid.  It means that buyers must ask the listing broker if there is any cooperative compensation available.   In the event the answer is no, then the agent must consult with the buyer and refer to the exclusive right to represent form. Clear differences exist between commercial and residential.  Immediacy is generally not present in commercial as it is common in residential.  Rapid moving residential markets can be impeaded or slowed by this added layer of discussion (assuming the offer to compensate is withdrawn from the MLS.  Now the process has an extra layer of discussion which could retard the process and flow when time is of the essence.  In addition, residential buyers have financing concerns that play into compensation that are not there in the commercial world.  For instance, buyers with VA loans are not able to make payments to the agent or to a vendor for repair.  That could be very harmful to some of our most important buyers.  It is potentially a dramatic erosion of one of their signature benefits. Often times consumers will call the sign in commercial real estate and proceed with no buyer agent. In some cases they may ask the listing firm for dual representation and other times they may proceed unrepresented.  Residential real estate has methodically and purposefully moved away from this and comfortably gotten to a situation where buyer agency is clear and defined and common, while seller agency remains intact.  Both sides have agency and compensation did not increase.   One really questions the benefits to the residential process that will result from the decoupling of advertising compensation in the MLS.  The theory on the ground is that since compensation is still permitted from the seller to the buyer’s agent that it will still take place largely as normal and hopefully with more transparency than before.  The fear is that our most prized and vulnerable buyers will be sidelined, and may resort to calling the sign, perhaps out of desperation and frustration and perhaps in the hopes of trading representation for perceived savings to make a deal work.  The ramifications of thousands of unrepresented buyers who are financially sensitive could be devastating if they don’t have capacity to negotiate repairs, oversee important disclosures, review documents, navigate extensions, deadlines, review repairs and verify payments to vendors.  It really could be lambs to the slaughter in some cases---sadly out of needless desperation caused by the DOJ.
Common Sense Term Limit Ideas for the Congress of the United States
Mar 11 2024
Common Sense Term Limit Ideas for the Congress of the United States
To be elected, a representative must be at least 25 years old, a United States citizen for at least seven years and an inhabitant of the state he or she represents.The Constitution sets three qualifications for service in the U.S. Senate: age (at least thirty years of age); U.S. citizenship (at least nine years); and residency in the state a senator represents at time of election.Members of the House of Representatives serve two-year terms and are considered for reelection every even year. Senators however, serve six-year terms and elections to the Senate are staggered over even years so that only about 1/3 of the Senate is up for reelection during any election.Congressional districts are the 435 areas from which members are elected to the U.S. House of Representatives. There are 100 Senate seats, 2 for each state.The compensation for most Senators, Representatives, Delegates, and the Resident Commissioner from Puerto Rico is $174,000. These levels have remained unchanged since 2009. Term limits at the federal level are restricted to the executive branch and some agencies. Judicial appointments at the federal level are made for life and are not subject to election or to term limits. The U.S. Congress remains (since the Thornton decision of 1995) without electoral limits.My suggestion for reasonable term limits would be to attract more people to serve, remove incentives for a life in politics, roll implementation in the House to mirror the Senate. This will preserve institutional knowledge which is critical.To attract a higher quantitiy of everyday Americans to do the unthinkablerun for congressleave their familyleave their businessI suggest increasing the pay to something very substantial, such as $$350,000 per year.In addition, there would be heavy incentives and benefits to protect juobs and business during service so the Congressperson could return home to what they left.Senators would be limited to 2 terms and Representatives to 6 terms.
12 Insider Tips for Landlords
Nov 15 2023
12 Insider Tips for Landlords
#1 Not for the faint of heart.  Emotional aspects of the process have to be left aside as often as possible.  Do not accept an applicant for an emotional reason.  #2 Consider buying a property needing work, overlooked, distressed.  You can solve condition problems later.#3 Look for a landlord moving on.  If you can buy a property with a tenant in place, then you are 5 steps ahead of the game.  Be sure to check all documents, procure all escrows, and be sure the management is transferring also.#4 It is better to be empty for a month or two than to take ina risky applicant. #5 It is better to take less rent than the market will allow if you find a solid tenant or want to keep a solid tenant. #6 Property turn is the hardest part on the process.  Have plans in place to do repairs faster.  Having paint codes is a big help.  Cooperative tenants are a big help. #7 Befriend the neighbors and request a call if anything unusual is noted at your property. #8 Hire a property manager who is a member of the NAR.  Unless you are in a very flexible job, already tied to construction, remodeling, or a trade, you are not going to have the ability to solve problems in a timely manner.  Also the laws and proper forms are ever and always changing.  This will cost you, but if you look at the actual long term benefits....less down time, higher rents, fewer non paying tenants, better condition it is really penny-wise and pound foolish to do it alone. #9 Understand the financials.  You have different ways to look at your rental financially.  Look at the rental income, less your expenses.  Hopefully that is a cash-flow positive.  Expenses would be mortgage, HOA, insurance, taxes, management fees, and repairs.   Also look at the appreciation of the home.  It is important to get the property for the right price and not over pay.  That is why getting a diamond in the rough can be a good strategy.   #10 If you have a 10 year timeline, you can project out what your rental asset will be worth give historical appreciation numbers, say 5%.  In addition, your tenant will be help you with the mortgage and paying down your principal balance. #11 Consult a tax professional/CPA regarding the tax implications.  #12  Convert a principal residence into a rental.  This is a common strategy I see with Military service members who may do this out of necessity.
12 Insider Tips for Renting a House
Nov 9 2023
12 Insider Tips for Renting a House
At least 6 months before you start applying for rentals check on your credit and solve any outstanding collection items if you owe somebody money and they send it to collections you absolutely have to get that solved and paid off. Have several months with no late payments.Make sure you save up several hundred dollars for the application process as you may have to make multiple applications. And this might need to be more if there are two adults applying.Always see the property prior to paying for an applicationAlways have the listing agent verify in writing that it's available before running your applicationAlways be extremely upfront with the person regarding anything in your credit or criminal past. It's very helpful to put this into writing so they know that you're serious. If you approach your issues professionally you will be dealt with on a more professional level.Having a pet can create a lot of headwinds for you when you are looking for a property. Take steps necessary to remove or just know that you're going to need to allow yourself more time and probably more money to get the rental that's right for your family.Consider hiring a tenant's agent. This type of agency is not terribly popular in our area however if you hire the right agent and offer them a suitable fee for service they can probably save you money in application fees and they can probably negotiate better terms than you could on your own, and most importantly it'll lower a lot of the stress that you're bound to incur.  Be sure to document the condition of the property in writing as you move in. It's not a bad idea to take photos as well or video but written evidence is very powerful. Make sure you deliver it to the property manager in a timely manner.I suggest renting professionally managed properties especially when those managers are members of the national association of Realtors.Read your lease carefully before signing. No you're rights. But also know you're obligations also.Don't plan on having your security deposit back the day that you move out as managers have several weeks to return your deposit. The better condition you leave the property in the fewer estimates they need to get.  Paying your utilities as you're moving out and providing proof of those payments will expedite the amount of time it takes to get your security deposit returned