All Forum Posts by: Greg Downey

I would venture the say that this depends on the market.  You probably know the answer already.  How fast are deals going in YOUR market?  Fast? then it might be legit. Slow? then B.S.

I like the idea of "changing" the offer.  For example: Our current home was on the market for $119,900.  We offered $122,200 but they pay closing.  After closing, the selling agent said that coming in higher than asking was what sealed the deal, even though we could have offered asking price but had to come out of pocket for closing.  In that scenario, I promise you that the sellers would have waited to see if they could "beat" asking price.  The net exchange at closing was the exact same, but the sellers really felt like they had done will with and "over asking price" deal.

@Sean Carmack, my father-in-law is an expert in putting people in contact with qualified lenders.  As you are finding out, this is a pretty complicated process.  Take advantage of and expert's experience.  Drop me a line and I can hook you up.

I may be able to help. It seems that 75% LTV is typical with some going to 80%.... Just depends on the deal. Seasoning depends greatly on which lenders you are talking to. They each have their own in-house rules. I do have a connection with a lender that does only require 90 day "seasoning" and the clock is already ticking on that.

Holding within an LLC typically will not trigger a due on sale clause (as I understand it), but if you are shifting ownership and financing aggressively, you are probably putting yourself at risk for some troubles. You may be able to take a loan out in a number of scenarios, but the LLC will probably carry a higher rate as @Emily Cortright stated.  

Just PM me and I can get you 3 lender proposals in the next 24 hours (in most cases).  Should only take about 5 minutes of your time and no credit pulls.

Hey Bob, my father-in-law just launched an online loan portal that essentially can get you 3 lender proposals for a refi within 24 hours. It should only take about 5 minutes to input information. This sounds like a bread-and-butter type of deal for them.  I guess it is against forum rules to post a link to the site, so just PM me and I can forward you to them.  They will really take good care of you and get you infront of banks that can make deals happen.

In response to Kerry, I was discussing this with my father-in-law today, the 75% seems to be pretty typical for a cash-out-refi, but he was closing for and investor on a 10 property "protfolio-type" loan today.

Good to hear from you guys.  I really don't want to take the time to find the deal.  That in and of itself can be a full time job (can and point your presentation last week Andrew...again, congrats). As you indicated time is my limiting factor-ish, especially if there is someone who is already doing that in this area..... and it would potentially delay getting a deal done.

I am now seeing the benefit of having a bit more cash in the bank to straight up pay a private lender any difference in how the deal is supposed to go and how it actually goes (if it goes poorly)..... Owner financing would be great, it sounds like a one in a million, but that is just coming from a guy that is just starting looking.

Quick background on myself:

$35k in the bank (I am willing to temporarily part with $20k). Own our personal residence 30 year fixed VA (7 months old) and one $61K turn key investment in Memphis that I am expecting to cashflow nicely @ $275/mo with a 20% down payment.

I am looking to do some local (Springfield, MO) BRRRR deals. After talking with the largest wholesaler in the area, it seems as though a $20 property that needs $30k of improvements and an ARV of $75k is pretty typical and readily available.

So, knowing the jist of my finances, how would you go about financing a deal like this?  

1. Purchase the $20k property outright and get lending on the $30k rehab....bank vs hard money vs business credit card

2. Ask friends to act as hard money lenders for all $50K (they take 1st lein)...with my cash still in the bank as a backup

3. crawl into a ball and not act due to crippling overanalysis/fear....not an option

I am more comfortable with option 1.  

What do you think?

Thanks Rod for that story, it paints a pretty good picture.

John, the sounds really tempting. to do a FSBO. Did it make it harder to do all of the closing stuff and paperwork? honestly, I think that was the best part about having an agent was having someone else to take care of the paperwork. I was able to find the best homes. I just HATE paperwork.

I have really enjoyed sitting back and taking in all of yall comments. Thanks.

Here is what I have gathered:

It is not completley inapropriate to ask for a commission split reducing down to say 3% instead of 2%. (I thought 2% was low, but i just needed to throw something out there.) Especially given the circumstances the the California guys and galls have indicated: properties are selling fast and apparently it is not uncommon to have combined commissions at 5%.

I have contacted her, and I gave her a list of the comps in the very near area. We are flexible as to the sell date, and are open to "rent-back". I do know the area/comps pretty well (but she knows it better) and I am well aware that I do not know all of the costs involved (but I am learning from yall so that I won't be a jerk, but also want to milk this deal for what little value that there might be).

What I am having trouble grasping is why some of yall are so against giving a frequent use discount. I am not trying to argue, just trying to understand. I just don't see why this is considered my "fault" rather than this is an opportunity to gain commission 2x in less than 2 years on a $300K home. We don't have to sell, we are seeing this as an opportunity to get out, and invest in other markets, which is a benefit to my agent, even at a slight discount. Right?

We bought the home for just under $300k which was a very fair deal for both parties.

The market is appreciating (we are in San Diego) at about 5% probably slowing to 4.5% per year. We already did the renovations to a tune of $6000 out of pocket, but it did them all myslef to include a new 200 sqft patio, 2 1/2 bathrooms and a kitchen. No renovations will be needed.

I don't think that our live circumstances are going to be her fault, rather they are a massive benfit to her in that she can sell this home 2 times in under 2 years. So is a small discount on comission in order. I don't even know if 2% is the right number at all.

Thanks for the dialogue Joel and Fred!

Thanks for replying, I was only speaking of adressing MY realtor's comission. I would have no aspiration for affecting the buyer's agent's comission.

So to reiterate, at $330,000, the buying agent would get 3.5% ($11,550) and the selling agent would get 2% ($6600). the total would be $18,150 This is a chagne from the standard rates of 3.5% and 3.5% which totals $23,000.

Is that unfair given that she will have bought an sold this relativley expensive home 2 times in 1.5 years?