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

Question

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?

Chris Seveney · Answer

@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

Alecia Loveless · Answer

@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.

Account Closed · Answer

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.

Erik Estrada · Answer

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%

Luis Renteria · Answer

Thank you all.  You have been so helpful.

Luis Renteria · Answer

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

Russell Brazil · Answer

Its allowed as long as his license status is disclosed

Erik Estrada · Answer

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

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

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