All Forum Posts by: Jay Hinrichs

@Bill Gulley 

  yes bill that is what I do... The cashiers check works though for sure.  And its free.

I have not gotten any blow back in the last year by just sending in a copy of the checking account showing enough funds to make the purchase. When I had my HML shop I would routinely write POF's for my clients...

So this ties directly into the ethics of the bandit signs when we know that many of these folks do not have the wherewithal to make the purchase and there whole intent is to just flip a contract or do a double closing.  It does frustrate the folks that have gotten to the point that they can actually close a deal .. it muddies the waters for many to have all these newbies out there teeing up properties that can't really close.. and as you state you do see retaliation from agents ( turn them into the DRE as I am a firm believer that this activity needs a license) or like Aaron does he just rip's the signs down..

Many home owners that resort to dealing with these folks are in a bind.. and if they truly new that this buyer cannot close without reselling how many times would the seller actually sign that deal and not move on to ones that could prove it.

If I was in the business of direct mail campaigns and bandit signs and based on this thread I would definitely put verbiage in my letters that I can provide proof of funds and I encourage you as a seller to ask any potential buyer for a legit proof of funds and explain what these others are doing in detail so they don't get trapped with those that can't close.

There has to be some catchy phrases folks can come up with that will set them apart.

@Ursula B. 

as a builder and new home seller if I ever had a listing broker pull what your describing and refuse to co broker a deal I would fire them on the spot.. that is total BS and greed on the listing agents part.. UNLESS the listing is in the MLS as exclusive and its known up front that the listing agent is no obliged to pay a BAC ... A broker who does as you described would get a pretty bad rep pretty quickly.

If Cam's statement is true she did not make an offer in writing then she can just get her own broker who will right the deal the seller pays the commissions normally. although in ultra hot markets that may not be the case but I suspect things are not that hot in AL I do a lot of business in AL and yes there is competition from hedge funds for cash flow homes in some markets but anyone can buy a home especially if its MLS listed its not like this is San Francisco were you get 20 offers on a listing and its an all out bidding war.

@Holli Phillips 

  the majority of investors are not licensed. especially out of state investors and if they are its in their home state... there is a lot of debate if being licensed in the state your investing in is a hinderance.. IE because of disclosure laws.. Having a much higher fiduciary in the transactions etc etc.  Examples.

As an agent you would have to disclose your an agent in any of your direct marketing this goes both ways some are in the camp that sellers will think they make more money dealing direct than through a broker and much direct advertising that folks due points this out IE no fees to sell.. Although the sellers being unrepresented many times will sell for far less than what a good broker could have gotten them for the house.

As an agent you open your self up to challenges if buy a property too far under market and the idea is that you took advantage as a professional of the poor seller ..

As a private investor you don't have those Ethics issues and agency and fiduciary issue. And its a fine line if you think about and read enough on BP  your a hero on BP if you got some poor seller to sell to you so far under market that you make a killing... Others would think you took advantage of the situation and fleeced the poor seller out of their equity. 

@Cam Mckin 

  Real estate 101 is all things must be in writing.. If you did not make an offer in writing you did not make an offer.. At least in the states were I hold brokers license's this is true.

And this happens often think of the agent holding an open house and a buyer walks in talks about the house tells the listing agent no I don't have a Realtor ( which happens a lot it just happened to me personally on one of my last sales) next thing you know you get an offer and that person you talked to has another realtor and they write the offer.  As a listing agent you just grin and bear it happy to sell your home...

I assume the property is listed.. YOu can certainly find your own agent at this point to write the contract and represent you... IN our market on the West coast many times its frowned upon to double end deals.. Some brokerages won't allow it at all.. However for a practical matter in the lower price points ( if in deed your buying a low priced home in AL) the commissions are so small agents try to double end as a matter of course. Its one of the reasons the uninitiated complain on BP about agents that work with investors..

Most seasoned investors will let the listing agent double end the deal as the lisiting agent by human nature is going to push their buyers deal through because of great compensation, not that that's what should happen or is ethical its just human nature taking hold.

So yes if you want representation get your own agent to write the deal no worries. Also closing cost are usually split as to local custom  just ask your AGENT  what is local custom.

@Bill Gulley 

when I produce a cashiers check for the full amount that I offer its I the form of POF not an earnest money deposit so my funds are not tied up as you allude to. ON the West coast I do not put in the full amount of cash to purchase until the Seller has fully executed all docs and title is ready to record. That's how we do it out here Seller signs first buyer signs second and then brings funds in to close... Once monies are deposited into an Escrow account on the west coast the only way to get them back is for BOTH buyer and seller to sign cancellation agreement for release of EM agreement.. Now out I the Mid west and East coast when I do my deals there The attorneys will release EM upon demand has been my experience no need for mutual agreement. ...

And like any of these other methods its just one technique that can get your deal to stand out against all the others... Although now a days POF is pretty standard for OREO purchases private sellers who are not represented by RE brokers may not ask for one.. But any listing agent worth their salt will advise their seller to ask for and receive a POF from any and all buyers that offer on the property. Just like with our market out here you can't get a seller to take an offer seriously if you do not have a pre approval letter from a reputable lender or bank.. its just SOP to have this pre approval as part of the initial offer. And or have it to the seller within 2 or 3 days. And in the Bay Area your EM deposits are going to be very large to get anyones attention.. here in Oregon I still see deals written for 300 to 500k houses with 1 to 3k EM deposits.. In CA you would never buy a home with those kinds of deposits.. Being from the Bay Area when I came to OREGON I got deals accepted simply because I did not know any better and would routinely put up 10 to 20k in EM... The other realtors eyes would about bug out never had seen that before.

Love it  land speculators in the 20S and 30's created Millions of lots in riverside and san berdo counties along with other areas of New mexico and Arizona .... I find it interesting when I fly my plane over these areas and you can see the old roads laid out in a grid and the odd home or mobile stuck out there.. NOt really an investment per se but if someone wants a cheap place to live with no neighbors these are the spots..

There are many areas like this in CA.. .  In Lake co there were 100k lot platted in the 20's many still not developed but taxed as lots.. same with most counties. they are legal lots of record but for all intense and purposes worthless like I have no doubt these lots being sold here in this thread are.. but hey caveot emtor

@Steve Preston 

  court house steps generally denotes buying foreclosure as the Crier will conduct the sale literally on the court house steps.. Tax sales now a days are held on line or in doors in one of the rooms in the court house.

@Roy N. 

  gothcha 

@Roy N. 

 Not really a phenom in your area in our area most commercial deals are double ended.

What is customary for a Commecial brokerage in our are is to :

1. take listing

2. It never goes on MLS,,

3. send it to their buyers lists and clients ( 80% of the time its sold to one they already know)

4. Put it on loopnet or coastar

5. If its not a great property and not a lot of interest then let it go out to the RE community and other investors.

But our Multi market is one of the strongest in the US... Now if its duplex and four plex those will go on MLS as a matter of course.

@David Hunter 

@Karen Margrave 

The lenders apprasiser will be the last word on SQ ft. regardless of what is in MLS.

I really like the MLS in Charleston SC... at the bottom of every listing their disclosure says:

"IF SQUARE FOOTAGE IS IMPORTANT THEN MEASURE"