All Forum Posts by: Devon Garbus

@j scott that's how I see it too. The guru they use uses a spreadsheet (a really nice one) to calculate costs etc. I always use that to show them why this isn't a great idea.

How do I educate them (podcasts and articles would help) about the perks to wholesaling/walking for dollars etc?

1-Interview agents

2-ALmost every big name brokerage is localled owned and operated.

You are getting a mom and pop with the big guys, just with global reach on the marketing and therefore more bang for your buck.

If you aren't getting 1-1 attention from your agent, at any office, get a new one.

Talking to people

@wayne brooks we both know that those aren't hard to find ;)

Will the transactional lender not give you EMD money? Even if it's X at owner acceptance and adding Y at bank acceptance itll save you on the interest.

Why cant you close on the whole transaction with hard money?

Ugh I need to go on.

Those lawyers you hired get paid NO MATTER WHAT. They are on salary and... defaulting on a contract with a legal group seems like a really bad idea.

Realtors pay hundreds, and on luxury homes up to THOUSANDS of dollars out of pocket, on the chance that your home will sell. Any cost those lawyers incur will be charged to their clients.

My brokerage has an extremely strict policy on not negotiating listing prices, for all the reasons I gave and more. However, if you wanted to pay the listing side in advance my broker would be willing to talk, since you are taking the risk away from us.

Disclaimer- I'm an agent who has not sold a home over 600k (yet...)

Here is a really really easy way to decide how much you should pay your agent. Check the MLS SOLDS in the area. What did they all pay to the buyer agent? The answer, overwhelmingly is going to be 3%.

If I am a buyer agent, and I have a client with $1m who is ready to look at homes do I show a house listed for 2% to me or 3%? That's 10k difference you bet your *** I'm showing the 3% first, second, and third. For as long as there are homes on the market that match my buyer's criteria at 3% I'm not in violation of the code of ethics etc.

To put that into persepective. What are the maintenance costs on that house? Are you still paying it off at 6k/mo plus utilites, lawn, hoa? If your property sells 1 month faster listing it at 3% it's break even, 6 weeks faster and it's profit.

So if you are going to take a listing at 4%, make sure 3 goes to the buyer agent. If a discount agent/broker is happy to take a 4% listing make sure the money is going where it needs to go - ADVERTISING TO THE BUYER AGENTS. Seriously that is your MOST important part of marketing. 

 Go to that 4% agent and say "sign me up, and give 3 to the buyer and one for listing side" and watch how fast they raise to 6. 

Why? Because when a buyer sees your listing and wants it he'll call his (useless) grandmother to give her the commission. Then I have to do twice the work (because god forbid this retiree has to show up for buyer inspections, or even show the property to the buyer, or even write up the damn offer herself... yes I've been there a lot and this sucks). Do you really think I'm going to take 1% and let that useless old biddy make 3x what I am? Do you think it's smart for me to take 3 and advertise the 1?

Your analogy isn't quite fair. If a company hires an outside company to do the sale those fees will usually be higher. You'll also note that the lawyers incur 0 costs from-

Marketing, photography, drone rentals (for videos), video editing and photo editing, website creation and promotion. Misc other marketing (DM, pay per click ads, other print). MLS dues, training.

Now lets view this in another way.

You have two agents. Joe and Bob.

Joe lists at 6% and is firm on that split.

Bob asks you for 6 and says "if you ask for 5 my broker will be sure to agree hehe, tell you what sign right now and we'll do 4.5"

Which agent will be more firm on YOUR price to Get Your Home SOLD for as much as possible? Bob all ready has a proven history of being ready to drop down at a moments notice to make a deal happen. He's desperate to get the listing. He probably knows his marketing won't be up to snuff and is competing with Joe on price instead. Why compete on quality when you can cut costs?!!!!

Joe knows his value and will stand by it, just like he will stand by the value of your home during negotiations.

I could go on, but it's late.

Since this is a short sale things are a bit different. If this was a normal sale I'd tell you no owner/LA would let you touch it with no EMD.

Check with your local agents/laws/contracts etc but you don't need to put escrow money in until the bank approves it. Which in a non pre approved short sale case can be 2-12 months. I'd also throw in a really small EMD, occasionally banks overlook that when approving short sales and just look at the bottom line.

Also- if you are pre approved for 100% loan offering $500 in EMD is fine. Although you probably need to offer over asking or something to make the offer look good.

So you can get away with no money in escrow for a long time. Try to find a transactional lender. Such a small amount is hard to find for, but it can happen. You can also try talking to friends/family to invest in the business, give you 9k now for EMD and get back 12 later should be appealing after you explain the business and how this isn't a scam.

I'm screening JV partners for new construction residential builders. Let's talk tomorrow or friday.

What's the cross street? 

I'm confused. Are you looking to hire agents? Or partner with agents who have clients? If so we can talk.