Today’s question is quite interesting. In fact, I just got it this morning and it took me a little off guard. It’s from a guy named Dan and he says, Hey Marco, I started pessimistically listening to your podcast about a year ago, thinking I’d end up listening to someone, trying to convince me of something that was too good to be true. Long story short. I’m a big fan now and listened to you just about every day in the car to and from work. I have one rental property and I’m looking for a second and a third I’m writing today because I want to let you know that as much as I’d rather work with you and your team than someone else, I don’t get a warm and fuzzy feeling from your website. The inventory of homes seems small. And what you do have the information about them is vague. I believe that you would only provide houses that are in decent condition, in a good market, and provide a positive cashflow. Which is true, but it’s hard to get on board with the limited info that I’ve seen.
Do you have plans to make your website more transparent, maybe show more pics inspection reports, that sort of thing. I hope so. Or at least I hope that I get a reply out of this, helping me to understand your process better and get the opportunity to work with you. I’m just an average guy and have never been a fan of anyone. So I’d be pretty excited to hear back from you. And I know this, isn’t an Ask Marco type question that you have on your podcast, but it would still be great to hear back from you much respect – Dan.
Well, Dan, first of all, there’s no such thing as an average guy, everybody is unique in their own way. So you are certainly not average. What I did is I quickly replied back to Dan and I said, and this was within minutes of seeing the email. I was just there at my laptop and I watched it come in. So I jumped on it like that. I said, Hey, Dan, surprise. I’m getting back to you with a smiley face. First off, thank you so much for being a listener and coming to like the show. I’m glad you stuck with it. Second to address your concern and observation about the inventory on the website. Let me explain it this way with the velocity of sales and the turnover in inventory, it’s hard to keep everything on the site. In reality, there’s only about 20% of the inventory available, posted on the website at any given time, everything else is available to you through your investment counselor here.
The other thing that’s important to point out is that properties that have limited photos as in one photo and those properties that have little or no notes are properties that are not yet ready on their renovation. We post because we want you to see what’s coming down the pipe, but it’s not quite ready yet. A lot of investors will reserve those properties while they’re being renovated so that when they are ready, they can be inspected financed and ultimately purchased. So the point here is that we only have a fraction of all available inventory on the site at any given time. It’s just not humanly possible to keep up with everything all the time, across 20 or 25 different markets with different builders and providers that we work with. So we try and keep as much as we can on the site and as current and up to date as possible and turn them over with new ones as often as possible.
But the reality is, is just expect there to be only about 15 to 20, maybe 25% at any given time of what’s available. And also think of it this way and look at it this way. There’s probably anywhere from, let’s say a hundred to, as many as 200 or more properties available at any given time across all the markets that we’re in at this point in time, but they’re not all on the website. So the best thing to do is what I recommended to Dan here is if you’re working with an investment counselor, just ask them what is available in some of the particular markets that we’re in. And we can get that information to you very quickly. If we don’t already have it on hand, but we see updates and get spreadsheets and updates quite regularly, almost every day, but it’s just a regular thing that we’re doing.
And it’s just impossible to keep up with it in real-time. I mean, we keep up with it, but we don’t keep up with it in real-time. So the total inventory keep in mind is always going to be a hundred or 200 properties across the board. I think that’s a really important point to make here is that everything on the website is not what is available. Second, if you only see one photo or the photo is not a great photo and it’s one photo that is a pre-renovation photo, and I’m talking about refurbished properties, not new construction. So keep that in mind. Sometimes we’ll only put one, maybe two photos because we want to put something there like a thumbnail as opposed to nothing at all, just looks better. Another point is just the stage of renovation. Keep in mind that because sales are brisk today and we’re still pretty much in a seller’s market in most of the markets that we operate in, the inventory is going to be there, but coming.
And the point is that these sell quickly. And so because they do a lot of times, the properties are put under contract, right? When the property has been renovated or shortly before it. And in other words, someone is saying, hey, I love the location. Love that property, I love the numbers, I love everything about it, I know it’s not done, but let me take it off the market. So hold that for me or reserve it for me or let me put it under contract, subject to the completion and the inspection and the financing and everything else. So it’s really a conditional purchase. And in fact, all purchases are conditional purchases. They’re always subject to something, subject to the inspection, subject to your financing, subject to whatever it may be. The completion of something, basically it’s your due diligence, but talk to your investment counselor, work with your investment counselor.
If you don’t have an investment counselor here, just fill out the contact form on the website will immediately assign you to one and you’ll be in touch with them in no time. Usually, it’s a 24-hour turnaround. Anyway, Dan, I appreciate the question. Thank you for sticking around. I’m glad you liked the show and thanks for taking the time to submit the question. It was a really good question. Cause I think a lot of people go to the website and they may not be skeptical, but they may be concerned about the quote-unquote lack of inventory. But that’s the reason is because we just can’t have everything on there all the time. And this is especially true with new construction. There may be 30, 40, 50 lots available to build on with different street addresses, but we’re only going to show one of those duplexes, triplexes or fourplexes when it comes to the new construction. There’s just no point in posting 40 of them there. They all look identical. They’re just on a different street address and different lot.
Alright, that’s it that’s least that’s it for today. So if you have a question about real estate investing or finance, please send it to me. Go to AskMarco.com or just go to passiverealestateinvesting.com, click Ask Marco, submit your question and I will do my best to get to it. I appreciate you listening to the show. Remember to subscribe if you haven’t done. So, and thank you for listening. I will see you next time on our next episode,
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