If it takes integrity for a Realtor to advise someone not to buy a property, then Eric Judd wears his on his sleeve. As a real estate agent who works with investors, if he thinks a client wants to make a bad purchase, he’ll tell them.
“I’ll tell you not to buy something before I’ll tell you to buy it,” he says. “If you want to buy it anyway, I’ll work with you, I’ll simply want you to know if I were you, I wouldn’t.”
Judd is the co-owner of Investor Real Estate Services, a brokerage that focuses on selling and managing investment properties. He says he rarely has to recommend someone not buy a property because he makes it his mission to understand what his clients want and what he believes they’re capable of handing before he shows them the first listing.
“When you come to me, you and I are going to sit down and have a long conversation,” he says. “I’ll want to know if you’ve been educated in buying homes, what your expectations and goals are, and how much money you have to invest.”
Judd says one of the most important aspects of investing in property is having realistic expectations, something he works hard to help some clients achieve. “You might say you want to own a 24-unit apartment complex,” he says. “We’ll talk about that. I know TV makes it look like you can buy and rehab anything in 30 minutes, but that’s not how it works. Maybe you should start with a house, since a house is something you understand, and if you get in trouble or decide you don’t like it, you can get out of it quicker than a multifamily property.”
Once Judd knows what a client wants and is able to manage, he’ll begin working with them to build an investment roadmap, which includes picking a price range and looking at properties. Once again, he encourages people to invest in what they know. “If you grew up in Brainerd, then we’ll go to Brainerd and look at properties,” he says. “Maybe you still live there, and you’re comfortable there.”
Judd’s questions don’t end there. With over a decade of experience in selling investment properties, he’s learned many, if not all, of the right questions to ask. “Are you looking at foreclosures that are going to need a lot of work, or do you want a turnkey property that either has a tenant in it, or is ready for a tenant?” he says. “You might be a handy guy who’d be able to fix up a foreclosure.”
Once Judd makes a sale, he offers to manage the property. Since he and his agents work with a lot of out-of-town investors, Investor Real Estate Services has a well-established property management division. “We’re not a third-party you never hear from until we send you a check,” he says. “We want to be involved in what you’re doing with your property. Do you want us to manage one house for two years while you’re out of state? We can do that. Or are you trying to build a portfolio of homes, and eventually step up to multifamily?”
Judd doesn’t ask countless questions because he loves to hear his own voice (although he’ll say he loves to talk); rather, he wants to work with people to maximize their investment. Therefore, he’ll never be caught talking about what’s hot in real estate, or how to make a quick buck on a property.
“Real estate is a long term investment,” he says. “The boom proved the areas with the quickest appreciation are the biggest to bust. What’s why Chattanooga is nice. We have solid, sustainable appreciation and, more importantly, cash flow. Our tenant base is larger than other areas, and that’s great for investors.”
Judd has also been in real estate long enough to know people who purchase a property invest more than their money. “Real estate is one of the most emotional investments you can make,” he says. “You’re not going to buy stock in Wal-Mart or Target and brag about owning a piece of those companies. But when you buy a home, you do tell people about it. You’ll drive by your house and say, ‘That’s mine.’”
Investment Real Estate Services has its roots in a small property management company in Chattanooga. When Judd and his partners at the time were given the opportunity to sell to investors in California, Judd got his real estate license, thinking it would be a fun one-time deal. Within a year, he and his partners were going to California on a regular basis, and selling 20 to 25 houses at a pop.
“That was a different time. It was 2002, and then things really picked up in 2003 and 2004,” he says. “Then 2008 rolled around, and someone hit the light switch.”
In 2009, Judd and his current business partner, John Santero, decided to work more with investors, so they started Investor Real Estate Services.
Judd grew up in Arkansas, near the Tennessee border. He then earned an undergraduate degree in Communications at Memphis State, now called The University of Memphis. “I wanted to be a play-by-play guy for baseball or football,” he says. “I like to talk, and they do a lot of talking.”
It’s hard to make money doing that, Judd says, so he wound up doing outside sales for a paper company in Memphis. Through a series of connections, he then moved to Chattanooga to do sales for a school supplies company. Then real estate came into his life. He feels grateful every day to be where he is, doing what he’s doing.
“I’m fortunate to live in a city I love, and to wake up every day and do something I love,” he says.
As someone who encourages people (who are ready) to invest in Chattanooga, Judd takes full advantage of living in the Scenic City. He’s a licensed boat captain, loves kayaking, and is in the process of earning his diver’s certification. “I love being outside,” he says. “Becoming a licensed captain was a real achievement because it was a lot of work.”
Judd is also committed beyond his day job to promoting smart real estate investing. As a board member of the Chattanooga chapter of the Real Estate Investors Association (REIA), he has a hand in educating current or potential investors by planning monthly informational meetings and investment classes. “By the time you get through our basics of real estate investment class, you should be ready to determine if you want to invest in real estate, and if you do, specifically what you want to do,” he says.
Above all, Judd urges people to consult with an experienced agent before spending money on an investment property. “Don’t just watch TV and get caught up in something you might regret; talk to someone in Chattanooga who knows the area and understands investing,” he says. “They’re going to give you a wealth of knowledge.
Judd also encourages potential investors to stay positive, as the payoff for a smart investment can be tremendous. “Don’t pay attention to the bad stories; they’re only a small part of the overall picture,” he says. “There are more millionaires made through real estate than any other industry.”