All Forum Posts by: Kim Knox

It is the only way to do it, as far as I am concerned.  Try to allow each other to take on certain aspects of the business, based on your individual strengths.  I find that although my husband and I work together as a team, we play different roles, which helps to create some separation and balance.  For example, I pick out the finishes, he deals with the contractors. I advertise online for opportunities, he meets the prospects.  I get the details handled, he picks up the materials.  I negotiate with clients, he negotiates with me.  

We also work best with different types of people, based on our personalities.  We can pass one to the other if we don't feel we are the best fit.      

I have found that spouses that are not in the Real Estate business, do not understand when you have to drop everything to get business handled.  For example, I have had to leave my husbands birthday dinner before to get something handled.  Instead of being mad at me, he appreciated that I let him relax on his birthday while I worked.    

However, if you are a couple that argue or don't get along very well, I do not recommend it. Also, if one of you doesn't handle stress very well, or who can't wind down, it can be torture.  I have known a lot of married people who know they should never work with their spouse.  

@Bradley Cochrane I found your response useful and accurate.  

@Michail G I have had some success with probate business, as a Listing Realtor.   I think framing your value around quick cash sales is a not going to yield a response, particularly from a probate attorney.  They generally want homes on the open market to create as much competition as possible.  Attorneys and Personal Representatives generally want to maximize profit.         

If you are interested in soliciting business as a listing agent, I am willing to share my brief template.  

@erica juhl what is the basis of your case for litigation? 

Oh boy!  Quite a tricky situation @Erica Juh

Not legal advice.  I am not an attorney, no-sir-ee-bob!                  

I have a few questions for you to get the answers for.  Find out from your attorney if the Seller is able to close a transaction with another Buyer, if their is an unresolved earnest money dispute.  Find out, because this can give you leverage to demand a refund, even if you are not really entitled to one.        

If I was your Realtor, I would have seen your letter as a mistake, and would not want to deliver it.  You are essentially telling the Seller that for reasons that are not contingencies within your offer, you want out of your contract.  To me, this admission may disable you from getting your deposit back because you are naming reasons for renegotiation outside of your contingencies.  If your attorney could not find a reason for you to back out of the contract and get your deposit back, then and only then, would I be fine delivering your letter.  Obviously, if my client insisted I deliver such a letter, I would, after explaining my objections.  If, after hearing my objections they still wanted me to deliver it, fine.  

The second question for you to get the answer.   Did the Seller provide a Property Disclosure Statement and identify the code issues to you (A disclosure is a 5-ish page document that the Seller can share all information they know about the property to you)?  if they didn't disclose the code issues, they could have some culpability.   That may have been your way out, depending on your disclosure review period and the date when you were provided the disclosures documents. OR did the Seller provide a disclaimer (a single page document that says......essentially, I know nothing about this property, you figure it out)?  In my State, if a disclaimer is provided instead of a disclosure, you may have the right to back out of the transaction up until closing (unless it is a foreclosure, which this doesn't sound like). You would have had to sign either a Seller Disclosure or a Seller Disclaimer, because your signature acknowledges receipt.  Your Realtor will know which one was provided, as he would have gotten it to you for signature.  if neither has been provided, that may be your ticket out as well.   This disclosure or disclaimer should detail your review period of that specific document.                              

As far as being mad at your Realtor for not putting a due diligence period in your contract. Due diligence periods give you a reason to back out of a contract for ANY reason, so that is actually much more of a broad contingency than just an inspection period.  In a competitive situation, I can see why your Realtor did not assume you would want it in your contract if you were even waiving an inspection period, it would actually be counter-intuitive.      

I don't believe the Seller would deny signing an extension, after all they want to close as agreed.  However, I can see they are not interested signing an extension if you just want to renegotiating the terms of the contract.  You made it clear in your letter that you are interested in renegotiating the price.  If they are not wiling to reduce the price, why would they feel inclined to extent their obligation to you?  It is not odd that your Agent has not gotten an extension signed, I can't imagine why the Seller would agree to an extension at this point.     

Lastly, but maybe most importantly:  You are clearly uncomfortable with your Realtor.  Find another Realtor to discuss listing the home with (today), while you still have time to close.  Meet them at the house and ask them to tell you what they think they can sell it for once you complete your repairs and upgrades. You might be pleasantly surprised, and encouraged to move forward.              

When you are new to flipping, you should not be writing high risk contracts. Start off feeling the water before jumping in. =). Meaning, start with inspection contingencies. Maybe ask for 5 days instead of 10, but still have them.         

So, let me get this straight.  An Agent has been working on getting a short sale approval for you, the Buyer, for a year and a half?  You now have formal short sale approval, and you need to secure short term financing to close the sale?

Is your plan to resell the property after you close?    

It is beyond me why an Agent would spend the time trying to secure an approval for someone who doesn't have money to close, but I guess that is not the point.  

If you are trying to get referrals to a private money lender, you need to provide the details of your sale.  Purchase price, equity, current market value, and your plan.  For example, will you be putting money into the house to fix it up before you re-sell it?  If so, how much?  An investor will need to know the risk level.  

I think far worse than the right of redemption being exercised (cuz that would still mean you are making 9% on your money in Oregon), is finding additional liens and judgments that you are responsible for.  Someone told me that liens put on the property during the redemption period are unenforceable, but it would take a court action to nullify them, which I thought was good news, but she is located in Michigan. 

Are you sure the previous owner does not remain the owner of record through the redemption period?  I have only seen the name of the previous owner change once the right of redemption is expired?  Come to think of it, some investors elect to wait to record the deed until shortly before they close (on a  flip) so that the new purchaser is unaware of their profit.  

Hi Everyone!  

If I purchase a judicial foreclosure that has a right of redemption, can the previous owner encumber the home with additional liens AFTER I get the bill of sale, but before the 6 month right of redemption period expires?  

I am unable to find the previous owner to offer to buy the right of redemption, so this is of particular concern.

Cash for keys is the way to go with any occupant.  Include a waiver of the right of redemption period in the agreement in the event it is a judicial foreclosure. 

Finding out it is owner occupied is great news because you know you will not be subject to an existing lease obligation   However, they might be the ideal tenants, if they can prove they can afford your rent.  I don't mind tenants who have a foreclosure on their record, it is an indication of a long-term tenant.  =)

Variable commission is applicable if the Seller's realtor offered the Seller is discount on total commission if they are a dual agent (representing both parties).  

Eric Thomson, Escalation clauses are not acceptable with government owned foreclosures, first off. Many independents don't care to review escalation clauses either. I want to be very clear on this, because I have represented many REO listings and I used to get Selling Brokers presenting escalation clauses, regardless of how I explained to them that I only get the change to enter ONE sales price into the computer system for each offer. Unfortunately for those agents, offers can come in after theirs, so I might make a note about the details of the escalation clause within the computer system, but Asset Managers say no to escalation clauses, they will only review your total sum offer (minus the escalation clause), in spite of your willingness to pay more. If you will pay more, they expect you to simply offer more.

Plus, there are some limitations on exercising an escalation clause. They will not show the offers of other people to exercise an escalation clause, because that is considered confidential information to another Buyer. 

I am telling you this not because I am REMOTELY afraid of out of the box thinking, it is because I know the mechanics of making offers on foreclosures, because I work for the banks who I present these offers too.  I have info, that you, and potentially your agent, do not.   

Stephen, It is not uncommon to call for multiple offers.  When you make your offer, I am calling all of the other Agents who have asked me to let them know if I get an offer.  That generates more offers.  My job is to get the most money for my client, so your offer may be used as leverage to increase competition.  The listing agent is working for the Seller, so they do not stop any marketing activity just because one offer is received.  They stop all marketing activity once an offer is accepted.