All Forum Posts by: Mark Yuschak

I recently had a discussion with my broker about commission splits and when I would move on to the next commission split level (would have been easy to learn had we signed a contract, but we didn't...that's water under the bridge now). Since I am relatively part time it's taken me a while to get a decent dollar volume of deals under my belt. He claimed it still wasn't enough to be bumped to the next level.

Continuing on, I told him I plan to take the GRI and get a Broker's license soon and would like to be an associate broker. He said even when I do, the commission split won't change until I reach 2,000,000 in sales because it's not affordable for him.

I could tell he was getting frustrated with me, so I stopped pressing. But my main question is...why does it matter what volume of sales a Realtor does to attain a given split level? Is there a volume discount on E & O insurance or something? I would think that making 20 or 30% of a deal anyone of his Realtors brings in is still 20 or 30% - regardless if the Realtor does 100K in sales a year or 2 million.

Am I missing something? This really has me perplexed.

It all depends on the area. In MI, it seems the lenders are accepting any reasonable offer on properties listed as a short sale. The market is so messed up that nobody can seem to come up with an accurate value on anything these days....

I submit all my own offers on REO properties, too. I just submitted one yesterday as a matter of fact.

However, I don't propose a change in the commissions. The amount of potential commission paid out by them does not affect my offer. Either way, I'm coming in low. Real low. If the deal closes and I get the commission, all the better. Furthermore, our PA template doesn't have a place to write in commission changes unless it goes in the "Other" section.

Since you will be an agent, make offers...and lots of them! You're not burdening anyone but yourself!

I like the "Sell With Soul" series by Jennifer Allan.

I recommend you confirm the perspective tenant can even get utilities turned on before you sign a lease with them. I was almost burned by that once. Signed the lease and called the utility company to transfer services to the tenant only to find out that they were ineligible to get gas and elecrtic in their name due to a $4,000 deliquent bill.

The tenant was forced to move and forefitted the 1st month rent and depost. Easiest $1100 I made in one week.

As part of my background check, I call the utility company. If they can't get the utilities in their name, I pass on 'em. Not all scenarios end up such as the one "bad" experience I had.

You would not have to pay your Realtor anything unless you signed an Exclusive Buyer's Agency Agreement with him/her.

A short sale can be completed without a Realtor. David has already given you all the points necessary to start talks with the bank...the main thing you need right now is to get that authorization letter over to BOA so that they'll actually talk to you. One other piece of information that will be handy when you call BOA to discuss the loan is the last 4 digits of the seller's SSN. I've had servicers ask for that info more than once when dealing with short sales.

When he says you can "have the house for" is irrelevant if he's going to short sale it. It's ultimately up to his lender. If they agree to a price, and he's still interested in short selling, all he can do is sign the purchase agreement.

No. The seller's bank doesn't care where the money came from. Of course, they'd like a cash offer because it's one less hurdle which may stop the deal, but it's not paramount. I consistently see short sale purchases which are closed with a new mortgage.

Appraisals and BPOs are never expressed in terms of what sold five months ago. There's a reason for that: the market changes very rapidly. That's simply what Dave is trying to convey and I 100% agree. You should not base the price you pay for this SS upon the sale price of a home from five months ago. 30 day old comparables are desired. If you can find nothing within 30 days, then look back 60 days, tops. That's where a Realtor or appraiser would be able to assist you.

NOI is relatively easy to determine. How about finding out the market cap rate?