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All Forum Posts by: Bruce Lynn

Bruce Lynn has started 72 posts and replied 5041 times.

Post: New rules for real estate commissions!

Bruce Lynn#2 Real Estate Agent ContributorPosted
  • Real Estate Broker
  • Coppell, TX
  • Posts 5,172
  • Votes 4,517
Quote from @John McKee:

So what do you think about Buyer's paying their realtor's commissions vs the old way of the seller paying the commissions of both parties (5-6%). How will this change the industry?  

 Who says the buyers will pay commission?  I'm not sure who pays will change.  Maybe it depends on the market.  Seller's market, buyer pays; Buyer's market, seller pays. 

Some people think commissions go down. I may be the lone person out there, but I think commissions go up.  Weak agents that used to take 1-2% go away.  They didn't stay in business long anyway.   Now the strong agents may rule.  Strong agents negotiate better and with more friction and less transparency, commissions may well go up.  Also with fewer agents, and maybe fewer brokerages, or giant brokerages that control their market.  Less competition normally means higher prices.

Post: Possibly Looking into Real Estate License. Any advice?

Bruce Lynn#2 Real Estate Agent ContributorPosted
  • Real Estate Broker
  • Coppell, TX
  • Posts 5,172
  • Votes 4,517

If you're just doing it for the knowledge, take the classes, but no need to get your license.  You can probably find most of the books online like Amazon or someplace local like 1/2 priced books.  Education is always a good thing.

Post: Thank You Mr. I Don’t Know

Bruce Lynn#2 Real Estate Agent ContributorPosted
  • Real Estate Broker
  • Coppell, TX
  • Posts 5,172
  • Votes 4,517
Quote from @Chad U.:
But aren't you at risk that it sells for the minimum bid of $67,000, all that goes to the taxing entity and you get wiped out?

Post: Purchasing a house without an agent

Bruce Lynn#2 Real Estate Agent ContributorPosted
  • Real Estate Broker
  • Coppell, TX
  • Posts 5,172
  • Votes 4,517

Different perspective...... One thing I would ask, is does the law office represent you or are they only transactional, assisting you with paperwork?  Big difference.

Who saves the commission, you or the seller?  You don't both get to save it?

Sometimes these deals are easy and smooth and everyone agrees, nice, and friendly, and then sometimes when they look easy, they end up way more complicated.  I see stuff like this occasionally and always seems like way more to the story.   Husband died without a will, had 3 kids from a prior marriage, wife thinks she owns the house 100% and will get 100% of the proceeds.   She didn't understand that the kids also have to sign and get 1/2 the money potentially.  They can't or won't sell because they won't net enough money or what they thought or are upside down.  They forgot they haven't paid taxes in 5 years,  They forgot they got a big insurance check, but didn't do the repairs, so now you can't get insurance.  They're behind on the mortgage by a year and owe all kinds of extra fees that will make them upside down.  Plenty of times $ are not in the contract...so when you agree with the seller for sale of $300,000, they think that is what they are netting, when there could be charges of title insurance, surveys, lender required repairs, prorated taxes, escrow fees, etc.  So they get miffed when the $300,000 is not $300,000 and maybe just refuse to close.   Stuff like this and 1000 other reasons are why 70% of the wholesale deals that get to title don't close.   You have to spend some time thinking about that.  Why don't they close?

When/if you run up against stuff like this, check to see what kind of consultation fees your attorney has to resolve them and see if you think it is worth the risk vs having your realtor resolve many potential issues for you.  Every location is a little different in this regard.  If the attorney represents you ask them for their professional advice or what risks you face?

I can tell you that if my mom, grandmom, or my daughter called me and said they were going to do this on their own, and their experience is 2-3 transactions, I would advise against it.  

Of course it might go totally smoothly with no hiccups and everyone is totally happy in the end and someone either you or the seller save a small amount of money on commissions.  However the savings come with increased risk and most people are just horrible estimating the costs of risk.  This probably especially true when a home purchase for most people will be one of the biggest investments they will make.

Post: Thank You Mr. I Don’t Know

Bruce Lynn#2 Real Estate Agent ContributorPosted
  • Real Estate Broker
  • Coppell, TX
  • Posts 5,172
  • Votes 4,517

@Chris Seveney  WOW did you get the whole overage, or just your payoff?   Didn't the authorities notify of the sale?  If it went to the tax sale, why didn't you as the noteholder get wiped out?

Post: New to Tax Lien and Deed Investing

Bruce Lynn#2 Real Estate Agent ContributorPosted
  • Real Estate Broker
  • Coppell, TX
  • Posts 5,172
  • Votes 4,517
Quote from @Don McAlpine:

Hi Julia - I'm a tax lien and deed investor in the Austin area and frequently attend the Bexar, Williamson, and Travis County auctions.  PM me if you'd like to chat.

I've never been to Travis County or Bexar County.  How do you feel like the auctions go?  Is there a lot of people that show up?  Is bidding crazy?  Any deals, or are they mostly close to retail pricing?

Post: Systems and Daily Routine

Bruce Lynn#2 Real Estate Agent ContributorPosted
  • Real Estate Broker
  • Coppell, TX
  • Posts 5,172
  • Votes 4,517

Honestly I don't see the disconnect.  Is your broker prohibiting you from working with investors?  That seems strange to me.

If you want to work with investors go after it.  You find investors that want to sell, you find some that want to buy.  Listings are better.  List to last.

In what ways of your broker's business operating and generating business is not compliant with the niche you want to go after?

There may be some shady things that your broker does not want you to do and probably rightly so.  Those probably aren't really investment activities anyway.  But that is not where your money will be anyway.  That's chump stuff.  

Who are the top 10 investors in your city or market?  Have you called them?  Have you met them?  Have you taken them to breakfast or lunch?   Are they buying more property, or selling more than they are buying?  Who are #11-20 and #s21-30.   Does your broker prohibit you from calling them, meeting with them, selling their properties?

My thought is don't focus on new investors, focus on existing ones who are selling or buying more property.  While everyone has to start somewhere, too many first time investors will waste your time, when you think they are serious, and never buy a property.  There's probably stats somewhere on BP or around, but the average number of investment properties people own is very low.  So that is tough to get repeat business from 1st time investors.  Go where the money is.  Then if you want to pick up a first time investor buyer and show them the ropes of the most successful long term investors in your market you can share your time and expertise now and then.

Post: New to Tax Lien and Deed Investing

Bruce Lynn#2 Real Estate Agent ContributorPosted
  • Real Estate Broker
  • Coppell, TX
  • Posts 5,172
  • Votes 4,517

Ok...Texas....just a few thoughts.

OTC is mostly trash.  Now and then you can find a gem, but we don't really have a lot of OTC for the most part and what there is mostly is stuff no one wanted at the sale.  That's the flood zone stuff, or stuff where value is less than what is owed, or maybe partials, land locked, drainage ditches, stuff like that.  I'll bet you would dig thru 1000 properties if there are that many to find a decent OTC deal in Texas.  Sales are well attended by good buyers for the most part and the good stuff typically will sell at auction.

In Texas you pretty much need to be available to attend the sales in person on Tuesdays.  You pay same day, same hour, or even in some places like Dallas county the same minute you buy in CASH or cashier's checks.  So no loans possible typically.  Every location a little different as to how they want payment, who it goes to, and when, but general rule is same day. Most sales in person.  Texas allows online sales now, but not many places doing it. Burnet county near you seems to have put some lots online for auction, kind of as a test it seems.

No one redeems in my experience so the 25-50% rule is a bit of a myth.  Can happen, but pretty rare.  When you win, chances are you will get the property.  Typically you will need to hold for 2 years before reselling. Forget the 6month idea, nearly impossible to sell before holding for 2 years.

That's some of the basics.

You've probably got some good counties around you to try.   I've never been to Travis or Bexar county sales, but imagine there is a lot of competition and money there.  I have seen some properties that looked good in Kerr county the past couple of years, but chose to go to other sales instead.

Post: New to Tax Lien and Deed Investing

Bruce Lynn#2 Real Estate Agent ContributorPosted
  • Real Estate Broker
  • Coppell, TX
  • Posts 5,172
  • Votes 4,517

Letting us know where you are or where you plan to invest is probably the first step.

Why tax liens/deeds?

Why OTC?

My advice is don't take any national road tour class.  They are excellent at making you run to the back of the room and pay $5000-$10000-$25,000 for training that won't be applicable to your area.  They'll also want to sell you a software subscription you will never use.

Learn from someone that actually invests in your area of interest. This type of investing is often very local. So go find that local person who teaches cheap classes, or provides a 1hr overview at a local REIA.

Read the book the 16% solution for a general overview of concepts and ideas.

Post: Similiar situation as Ms. Rudd. New agent looking for an investor friendly brokerage.

Bruce Lynn#2 Real Estate Agent ContributorPosted
  • Real Estate Broker
  • Coppell, TX
  • Posts 5,172
  • Votes 4,517

Congratulations on deciding to get your license. We may have a free course option for you, if you are willing to do it online and at your own pace.  Basically read the books and take the test.  That may or may not be a good option for you.  Maybe worth a shot, before you pay for a course.  Use that as your backup plan.

There are probably more investor agents at Keller Williams than any other brokerage.  KW wrote the books for example Millionaire Real Estate Investor, the book HOLD, and the book FLIP.  All great books if you haven't read them, and while they were published a few years ago, still awesome to read and understand and will also help you with working with investors.  They also make great closing gifts.   At any brokerage you should get to choose who you work with or what niche you fill.   This business and the investment knowledge probably won't drop in your lap at KW or even any other brokerage.  You have to network, and listen, and show up at the right places, at the right time, seek out the right people, put yourself in the right positions.  They may not be in your office or even in your city and they may not jump up and down, saying look at me, look at what I've done.  Some do, but you may also have to dig some.

Probably our closest office to you is Litchfield and McDowell.