All Forum Posts by: Derek Johnson

Hi BP community!

We're not working with a buyer's agent and I'm wondering if there is a legit way to make an offer on a property that includes a higher commission for the seller's agent. They just dropped the price on a place we're interested in and want highest and best on Monday, so I'm wondering if anyone has ever seen this work as a way to make an offer stand out, in addition to offering a higher price - and since there's no buyer's agent to pay, maybe it could work... Or am I crazy??

Thank you!

Thanks all for your input! Super helpful for us, and as we ran the projections more, decided there's probably a better deal out there for these funds. Your ideas will definitely help us find the right one.

Hi BP community!
I'd appreciate your thoughts on this. My wife and I are considering buying a duplex in a major metro in the South, in a rapidly developing and trendy in-town area close to downtown. We have it under contract for about $400k and there are good opportunities to improve it and increase rents- both sides are currently occupied at below market. I know this area well and significant new development is underway nearby- restaurants, apt complexes etc. 

We're planning to use about $200k to make a 50% down payment from one of our parents. I know this is an extremely high down payment but it will allow us to keep PITI a bit below the monthly income and to make improvements faster with our own cash.

We think we can increase the rents probably 20% over the next couple years, refi and pay back the investment with a chunk of the cash-out. This of course assumes interest rates aren't seriously higher then.

My main question is whether this is a dumb use of this much cash? Should I be looking for a larger property and make a down payment of closer to 20-25%, ideally one that cash-flows more out of the gate.

Another factor is that we're splitting the profits with our parent when we refi and buy him out, which will reduce how much cash we can pull out, in order to keep 20% equity in the property. The timeframe for this buyout is flexible - probably 3-8 years.

I love the BP community and would really love your take on this!