Realtor investing on the same property I am buying, is that allowed?

San Jose, California
General Real Estate Investing
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Realtor investing on the same property I am buying, is that allowed?

Luis Renteria
Member since 2019 · 3 posts · 0 votes

So my buyers are short 5% on a non-owner occupied 4 unit property in San Jose we need to be at 75% ltv and currently only have 80%.  the realtor on the transaction is willing to buy into the property 5%.  I am wondering if that is allowed being that the Realtor is representing the buyer on this same transaction.  Any thoughts on this?

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y

@Luis Renteria

I see no issue with it if they are representing the buyer

If they were representing you that would be a completely different story but a realtor on the buy side and involved in the property should not be any conflict

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  • Account Closed
    Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    3y
    Quote from @Luis Renteria:

    So my buyers are short 5% on a non-owner occupied 4 unit property in San Jose we need to be at 75% ltv and currently only have 80%.  the realtor on the transaction is willing to buy into the property 5%.  I am wondering if that is allowed being that the Realtor is representing the buyer on this same transaction.  Any thoughts on this?


     I'm trying to think of anything that might be wrong with an agent, who disclosed that he is an agent, investing on the buying side so you can get your full price. I don't think it has any impact on you, other than getting your place sold for full price. What the buyer works out with his lender(s) is up to them, as far as I can tell.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y

    @Luis Renteria

    I see no issue with it if they are representing the buyer

    If they were representing you that would be a completely different story but a realtor on the buy side and involved in the property should not be any conflict

    7e investments53 Reviews
    WebsiteView Page
    2Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y
    Quote from @Luis Renteria:

    So my buyers are short 5% on a non-owner occupied 4 unit property in San Jose we need to be at 75% ltv and currently only have 80%.  the realtor on the transaction is willing to buy into the property 5%.  I am wondering if that is allowed being that the Realtor is representing the buyer on this same transaction.  Any thoughts on this?


     Hey Luis, 

    Why do you only have 75% LTV? If the property debt services at 80% and your client's fico is above 700, owns 1 primary you should be able to qualify for an 80% LTV DSCR loan

    [email protected]818-269-7983
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  • Alecia LovelessPro Member
    Member since 2019 · 3k+ posts · 2k+ votes
    3y

    @Luis Renteria The only thing I can think of is if his agency has rules against it. Some of our agencies where I live have rules regarding how their agents must behave. Such as one has a rule that if one of their agents makes an offer on an in house property it has to be full price or higher. So if they had a rule against an agent being involved like that then maybe would be a problem.

    1Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    3y

    Its allowed as long as his license status is disclosed

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  • Luis Renteria
    OP
    Member since 2019 · 3 posts · 0 votes
    3y
    Quote from @Erik Estrada:
    Quote from @Luis Renteria:

    So my buyers are short 5% on a non-owner occupied 4 unit property in San Jose we need to be at 75% ltv and currently only have 80%.  the realtor on the transaction is willing to buy into the property 5%.  I am wondering if that is allowed being that the Realtor is representing the buyer on this same transaction.  Any thoughts on this?


     Hey Luis, 

    Why do you only have 75% LTV? If the property debt services at 80% and your client's fico is above 700, owns 1 primary you should be able to qualify for an 80% LTV DSCR loan


     It doesn't debt service.  That is why we have to go 75%ltv.  I have not had any solutions on this.

    0Reply
  • Luis Renteria
    OP
    Member since 2019 · 3 posts · 0 votes
    3y

    Thank you all.  You have been so helpful.  

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y
    Quote from @Luis Renteria:
    Quote from @Erik Estrada:
    Quote from @Luis Renteria:

    So my buyers are short 5% on a non-owner occupied 4 unit property in San Jose we need to be at 75% ltv and currently only have 80%.  the realtor on the transaction is willing to buy into the property 5%.  I am wondering if that is allowed being that the Realtor is representing the buyer on this same transaction.  Any thoughts on this?


     Hey Luis, 

    Why do you only have 75% LTV? If the property debt services at 80% and your client's fico is above 700, owns 1 primary you should be able to qualify for an 80% LTV DSCR loan


     It doesn't debt service.  That is why we have to go 75%ltv.  I have not had any solutions on this.


     Got it.

    Is the seller willing to carry? Whether it debt services or not you can do 90% on a commercial loan as long as the seller can carry 20%

    [email protected]818-269-7983
    LuxePrivate Investments LLC 570 Reviews
    WebsiteView Page
    0Reply
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