Do I really need a realtor to buy a MFH in DC?

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Do I really need a realtor to buy a MFH in DC?

Quincy Jallah
Investor · East Coast · Member since 2017 · 11 posts · 3 votes

I am looking to purchase my third property under the house hacking model. This place is in Washington DC and I've lived in the are for a few years.

I have been slogging through lenders and I have finally found two companies that can cater to the type of mortgage and funding that I need. I am expecting a pre-approval letter today. Luckily there are 3 properties currently available that I would be happy to match the listing price with an offer today.


About me: I own a SFH And (2) multifamily properties that I used realtors to buy. I have the energy to do the legwork on closing this deal and the acumen to at least research things I'm not intimately familiar with (legal training outside of real estate). I'm not an expert but I'm eager to learn and I am capable of actual legal research beyond google. The only reason I am considering this is to save the seller money in the hopes that my offer will be more enticing. I understand I will have to deal with the seller's agent, title company, lender, and district assessor's office (deed work). It's my first post so forgive me if I'm unclear or crass. Posting this in multiple forums.

Question: What am I missing? Given the very brief overview, are you cautious about foregoing a realtor in my buying process? Interested on your thoughts.

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
5y
Originally posted by @Account Closed:
Originally posted by @Russell Brazil:
Originally posted by @Manuel Diaz:

@Quincy

I have recently purchased a tri-plex in the NW of DC. Please be aware that TOPA deadlines are paused until the pandemic is over. This means that current tenants can stop any purchase or sale by withholding their consent. I had to purchase their rights in order to purchase my property. I did use an agent but this was my first home purchase. 

 As the buyer, if you paid the tenants to purchase their TOPA rights, you got had sad to say. You either wait out the topa timelines, or you get the seller to pay them off. Optimally, you just wait out the timelines. 

What's TOPA?

 Tenant Opportunity to Purchase Act.

Tenants in DC have the right to match offers on a property for sale. 

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    5y

    Do you know if the multifamilies you are looking at are legal? What type of financing are you using? If it is FHA, do the properties meet the FHA self sufficiency test? Do you know how to go through the TOPA approval process?

    Only 200 multis trade per year in the entire metro area. Most agents dont even know what they are doing when it comes to multifamily.

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  • Justin Lanciault
    Realtor · Washington, DC · Member since 2018 · 166 posts · 88 votes
    5y

    I wouldn’t recommend it unless its off market and even then it might be iffy.

    0Reply
  • Quincy Jallah
    OP
    Investor · East Coast · Member since 2017 · 11 posts · 3 votes
    5y

    @Russell that is sage advice. The buildings of have occupancy certs for 4 legal units. I don't like "unofficial" anything. The loan is a VA and not FHA. I understand there needs to be a vacancy and I'm not looking to evict anyone in regards to TOPA. I'm not 100% informed on the particulars of TOPA, but I will hire a real estate attorney to ensure things go smoothly.

    @Justin that makes sense. All opportunities require some risk and I'd rather fumble that ball than sit on the sideline for this chance. 

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  • Manuel Diaz
    Member since 2018 · 8 posts · 1 vote
    5y

    @Quincy

    I have recently purchased a tri-plex in the NW of DC. Please be aware that TOPA deadlines are paused until the pandemic is over. This means that current tenants can stop any purchase or sale by withholding their consent. I had to purchase their rights in order to purchase my property. I did use an agent but this was my first home purchase. 

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    5y
    Originally posted by @Manuel Diaz:

    @Quincy

    I have recently purchased a tri-plex in the NW of DC. Please be aware that TOPA deadlines are paused until the pandemic is over. This means that current tenants can stop any purchase or sale by withholding their consent. I had to purchase their rights in order to purchase my property. I did use an agent but this was my first home purchase. 

     As the buyer, if you paid the tenants to purchase their TOPA rights, you got had sad to say. You either wait out the topa timelines, or you get the seller to pay them off. Optimally, you just wait out the timelines. 

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    0Reply
  • Manuel Diaz
    Member since 2018 · 8 posts · 1 vote
    5y
    Originally posted by @Russell Brazil:
    Originally posted by @Manuel Diaz:

    @Quincy

    I have recently purchased a tri-plex in the NW of DC. Please be aware that TOPA deadlines are paused until the pandemic is over. This means that current tenants can stop any purchase or sale by withholding their consent. I had to purchase their rights in order to purchase my property. I did use an agent but this was my first home purchase. 

     As the buyer, if you paid the tenants to purchase their TOPA rights, you got had sad to say. You either wait out the topa timelines, or you get the seller to pay them off. Optimally, you just wait out the timelines. 

     It was an interesting arrangement honestly. We ran into self-sufficiency test problems so there were many compromises along the way. I gave them free rent and the owner dropped the sales price 2x the amount. 

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    5y
    Originally posted by @Manuel Diaz:
    Originally posted by @Russell Brazil:
    Originally posted by @Manuel Diaz:

    @Quincy

    I have recently purchased a tri-plex in the NW of DC. Please be aware that TOPA deadlines are paused until the pandemic is over. This means that current tenants can stop any purchase or sale by withholding their consent. I had to purchase their rights in order to purchase my property. I did use an agent but this was my first home purchase. 

     As the buyer, if you paid the tenants to purchase their TOPA rights, you got had sad to say. You either wait out the topa timelines, or you get the seller to pay them off. Optimally, you just wait out the timelines. 

     It was an interesting arrangement honestly. We ran into self-sufficiency test problems so there were many compromises along the way. I gave them free rent and the owner dropped the sales price 2x the amount. 

     Yup, theres pretty much no properties in the metro area that meet the self sufficiency test. In an ideal world, your agent should have been aware of that.  I typically just tell my clients if they are low down payment, they are going to be limited to 2 unit properties because of the 3/4 unit self sufficency test. 

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
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    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    5y
    Originally posted by @Account Closed:
    Originally posted by @Russell Brazil:
    Originally posted by @Manuel Diaz:

    @Quincy

    I have recently purchased a tri-plex in the NW of DC. Please be aware that TOPA deadlines are paused until the pandemic is over. This means that current tenants can stop any purchase or sale by withholding their consent. I had to purchase their rights in order to purchase my property. I did use an agent but this was my first home purchase. 

     As the buyer, if you paid the tenants to purchase their TOPA rights, you got had sad to say. You either wait out the topa timelines, or you get the seller to pay them off. Optimally, you just wait out the timelines. 

    What's TOPA?

     Tenant Opportunity to Purchase Act.

    Tenants in DC have the right to match offers on a property for sale. 

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    1Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    5y
    Originally posted by @Account Closed:
    Originally posted by @Russell Brazil:
    Originally posted by @Account Closed:
    Originally posted by @Russell Brazil:
    Originally posted by @Manuel Diaz:

    @Quincy

    I have recently purchased a tri-plex in the NW of DC. Please be aware that TOPA deadlines are paused until the pandemic is over. This means that current tenants can stop any purchase or sale by withholding their consent. I had to purchase their rights in order to purchase my property. I did use an agent but this was my first home purchase. 

     As the buyer, if you paid the tenants to purchase their TOPA rights, you got had sad to say. You either wait out the topa timelines, or you get the seller to pay them off. Optimally, you just wait out the timelines. 

    What's TOPA?

    Tenant Opportunity to Purchase Act.

    Tenants in DC have the right to match offers on a property for sale.

     
    Interesting concept. I take that is D.C. specific and does not apply to Bowie or Annapolis, etc?

     Just DC.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
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    1Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    5y

    @Quincy Jallah If the property is already listed.....the listing agent is already being paid a set total commission and you not using your own agent doesn’t change that.

    1Reply
  • Ray Slack
    Investor · White Haven PA · Member since 2014 · 362 posts · 221 votes
    5y

    I agree with wayne. If the house is listed and you come in without an agent the listing agent will just make more money and the seller won't save anything.. You are better off going with a company that refunds a portion of the selling commission to the buyer.. Not going to name any of them but you can google them.

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