Dilemna: Property Manager is my Realtor
Hey all,
Sorry I'm a bit long winded, I like to try and include all applicable information up front so I don't need to explain much more.
I am Active Duty Army. Me and my family moved to Kansas in August. We had three rental properties (2 in OK, 1 in TX) when we moved here. We use the BRRRR strategy for investing.
We bought our first property in this area last month. It was a HUD property, so we had to use a HUD registered realtor. That same realtor will also be managing the property when renovations are complete (just paint and refinishing hardwood floors left).
We found an REO property that we would like to get next. I reached out to the listing agent and went by the property and checked it out. The listing agent said that they were only considering cash offers.
After that, I contacted the Realtor/Property Manager to request a comparative market analysis and a rent range we can expect so I can run numbers (I'm not fully familiar with this area). I also mentioned that the listing agent said cash only and inquired if that meant that we literally have to have cash or of they would entertain financed offers without a "finance contingency" meaning we would forfeit earnest money if financing fell through. The Realtor provided the requested information the next day.
The dilemna we now have is that I think the Realtor/property manager is expecting a commission built into the contract, but there isn't really room for it.
Also, I feel like since we found the property and contacted the listing agent to view it and we are preparing the contract that we shouldn't include commission.
On the other hand, I don't want to mess up the relationship with the property manager. It just seems like a conflict of interest for this individual to serve in both roles.
Does anyone have advice going forward?
V/r
Kyle