I am about to put an offer on an off market fourplex in Dallas. I have my real estate license and I am thinking that once we come to a agreed purchase price I will ask if he will raise the price 6% and let me be the agent on both sides. My broker only takes 10%. I know income taxes may take some but I intend to put a good amount of work into the property and at end of yea should be close to break even anyway. I have full 20% but already have my eyes on a few more deals i would like to do.
Does anyone see issues with my idea? Below see the deals details.
Four units plus a garage apartment.
Units 1-4 rents are 600 (in 24 mouth I think i can get them to 715)
garage rents 400
tenants pay all bills
Starting at 185K but willing to go up to 210K
Thank you for your thoughts!
If you are buying what does a real estate license have to do with the deal?
I would get 6 % of purchase price back in commission, leaving me with more cash for other deals.
It might work if you are paying cash, and the seller gets their asking price. The seller might not need a seller's agent.
I may not have explained the situation well.
I approached the current owner and asked if they would sell. They said they were interested. We are close to agreeing on a price.
Lets assume we agree on 200k. Then I am going to ask if I can rep both myself and him and pay 212k. I will collect 12k in commission after sale. My goal is to basiclly put less down. Does that make since?
You explained it fine, I understood what you were asking. Just do the math to see if it's worth it. I don't think it will be and I'd rather just get it as low as you can unless you have a deal that you can't miss out on already lined up.
I am sure the seller would have no issue w/ this as his bottom line is the same. I tried something similar, changing the values of multiple house but still giving the seller the same amount.
Thanks guys! I do have one more I am looking at and the extra 12k would make it possible to do them back to back. I was just curious if others had tried this and if they had any tips or warnings of possible problems I may run into.
Sounds like I am good to go. If I attempt it I will let you guys know how it ends.
I think it makes since. My only concern is if the seller is unaware that they'll be paying a little more in conveyance taxes.
Cameron Norfleet, Century 21 AllPoints Realty | http://www.CameronNorfleet.com
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