All Forum Posts by: Christopher Phillips

Under the code of ethics of the National Association of Realtors, agents who self-list have a duty to disclose their ownership in the property. Not all agents are Realtors. Some choose not to be. So, mileage will very.

 They have nothing to do with each other.

A lease option is what it says. A lease with an option to buy a property at a later date. The person leasing the property doesn't own anything until they exercise the option to buy. The monthly payments are just rent payments and are nothing going towards the purchase of the home.

A wraparound mortgage means that the seller acts as a 2nd mortgage on the property. The 2nd loan will be junior to the original loan. The person still owes the first mortgage. The difference between the original loan balance and the sales price will be held by the seller as a promissory note to be paid by the buyer based on the agreed upon terms. This isn't as clean as doing regular seller financing and the property is free and clear of loans. How the title is handled depends on the deal.

 They have nothing to do with each other.

A lease option is what it says. A lease with an option to buy a property at a later date. The person leasing the property doesn't own anything until they exercise the option to buy. The monthly payments are just rent payments and are nothing going towards the purchase of the home.

A wraparound mortgage means that the seller acts as a 2nd mortgage on the property. The 2nd loan will be junior to the original loan. The person still owes the first mortgage. The difference between the original loan balance and the sales price will be held by the seller as a promissory note to be paid by the buyer based on the agreed upon terms. This isn't as clean as doing regular seller financing and the property is free and clear of loans. How the title is handled depends on the deal.

@Kimberly Caceres

Everyone is confused. The topic came up at the monthly office meeting yesterday. NYSAR said they were going to oppose the move and get further clarification.

NYSAR guidance says the the landlord has to pay their listing agent. The agent can't collect the commission directly from the tenant. So, it doesn't mean that the listing agent can't get paid, just that it has to come from the landlord - a savings to tenants.

The tenant's agent, if they hire their own agent, can be paid directly by the tenant or the listing agent.

So, if the tenant doesn't have their own agent, they don't have to pay a commission at all and will save even more money.

This means that landlords will now have to pay for the listing agent's commission.

It doesn't say what happens if a listing agent has both sides of the transaction.

@Jonathan Valdes

You could bring in a partner. Assuming that the property will be cash flow positive once it's setup with tenants. The partner would help with any needed finishing funds and also front the missing mortgage payments.

@Benjamin Rosemont

The IRS just wants their money. They could care less about the value of the home. They attach the lien to all of the debtor's assets until they get paid.

@James Baker

Hard Money lenders finance projects. They don't give you funding in advance. It's no different than any other loan - lending is based on the analysis of the property. However, if you speak to them in advance, you can build your strategy based on what they are willing to lend (% of ARV) and what interest rates and points required. If you need it, they can provide a proof of funds letter for your offers.

@Shweta Saraf

You can technically withdraw your offer and submit a lower offer, but doesn't mean they will accept it. It also risks that someone else will submit a better offer. It they are clearing the title, then it doesn't impact the value of the property.

When investing, the numbers work on paper for you or they don't.

Strictly depends on the town you're asking about. Literally, every town is different.

@Roger R.

You likely don't if you never had a listing.

The buyer might owe the commission depending on the agreement the buyer had with the broker at the time of the original offer. But agreements usually cover a limited time period.

This might be a topic to bring up with the local board of Realtors or with the attorney that you might have used for the transaction (assuming you didn't close on your own).