All Forum Posts by: April C.

Quote from @Leora Merrell:

Quote from @April C.:

We own two STR properties and a commercial property and are looking to buy our fourth property. We found the home we want to purchase, it's new construction already completed and we know the market and numbers work. We are questioning whether or not we need to work with a realtor at this point. We are architects and have inspected the property, deed restrictions etc. Feels like they wouldn't be a value add. The seller is also not using a sellers agent. At this point the paperwork would be minimal to get under contract, we are good with the price we have already negotiated. Thoughts?

We’ve bought several without a realtor. Just worked directly with the title company. Sounds like you have your ducks in a row to go without one. Ask the seller to split or discount the would be commissions in your purchase price. Win-win. A realtor would not be beneficial to you in the situation you described, in my opinion. You and the seller could save some money. :)

That’s what we are leaning towards. I think we will work with an attorney on the contract and try to negotiate a bit more. We have gotten the builder down quite a bit already compared with adjacent market prices. He builds one offs- not a volume builder so I don’t see him marketing to realtors. We saw a sign on the house driving by. Appreciate the feedback here.

Thank you for the thoughtful and detailed response Manny. For us as Architects we work with builders all the time and have in depth knowledge of construction beyond what a realtor knows so we aren’t worried on that front but your post gives me a lot to think about, thanks!

Quote from @Henry Clark:

Are they using a Title Company?  Who will hold the funds while title clears?  

We would still use a title company, just no realtor. I was wondering if local agents have better access to hood title company, not sure if it matters. What are the benefits of using a Broker agent vs a realtor? Hadn’t considered this. 

Strange situation. We added onto our primary home about five years ago and rolled the construction loan and Initial mortgage into a single primary mortgage. We now have significant equity in the home with the one mortgage on it. We recently found that the bank is reporting the loan to Equifax as a Home Equity Loan. To our knowledge it was just a standard 30 year mortgage when we got it. 

We now want to draw on some of the equity to make other investment purchases but will we be able to do a HELOC or fixed home Equity Loan with the way our primary mortgage is reported? Is this something we can change without refinancing? We have great rates on it and don't want to completely refinance. What are our options? TIA!

Thank you for the responses. We have contemplated getting licensed but we are looking to make this purchase pretty quickly so don’t think we have the time this round.

We are thinking that given the seller traditionally pays the buyers agent we may be able to get the price down 3% if we don’t have an agent - seems worth asking. 

We own two STR properties and a commercial property and are looking to buy our fourth property. We found the home we want to purchase, it's new construction already completed and we know the market and numbers work. We are questioning whether or not we need to work with a realtor at this point. We are architects and have inspected the property, deed restrictions etc. Feels like they wouldn't be a value add. The seller is also not using a sellers agent. At this point the paperwork would be minimal to get under contract, we are good with the price we have already negotiated. Thoughts?

@Taylor Holland nice! Congratulations- we closed about a week ago and are furnishing now . We plan to build some outdoor amenities like decks and do more landscaping before launching the STR. For now we are using it for the remainder of the summer and getting ready to ease into renting. Love all the wildlife out here over two days we have had bobcat, Fox and deer sightings! We are in the North side of the lake and love it. Best of luck to you!

Two words: Construction delays :) under contract though.

@Dan Burstain agreed - Austin is insane and has been through the ups and downs. I think the question is how big is the negative cash flow. No one can afford to rent at the price folks are buying at. If you are new to this market it will be negative. I’m wondering more about mid length rentals marketing to traveling nurses on the I35 corridor. No need to go negative just get more creative.

We ended up not making an offer on this property but got to know the selling realtor well and brought him on to help us find a property that was less complicated for our first investment. We made the big decision of trying our hand at hospitality and we are under contract on a new construction property. The great thing is we are meeting the builder and. Subs, getting knowledge of construction costs in the area. We also felt like this other property will help us get our process in order at this location before we jump in fully. So excited to be under contract at a different property!