All Forum Posts by: Michael J Scanlon

@Daniel Haberkost

I’m getting a lot of Facebook marketplace responses but I want to open up to as many people as possible so I was curious to get the perspective of more experienced landlords. Especially since I will be an owner occupant, I want to have my pick of as many candidates as I can find.

I’m just looking for renters for my property for the first time. I’m renting by the room.

Where do you have the most luck?

I’ve advertised now on cozy, Facebook marketplace, and Craigslist.

Where else is good or have you had luck?

@Will Fraser

So I would need to find a smaller bank/credit union?

And are there differences between a commercial loan for a SFH and a portfolio loan? Or we're just using them synonymously here?

Thank you

So I understand the full process of the BRRRR method. Buy with cash, fix up, appraise, refinance the cash out.

But the one thing I’m unsure of is how you finance it when you’re done?

If I'm working with partners as part of the deal, do we finance it through an LLC? That's what makes the most sense to me but I've read so many posts about how most banks won't give a residential loan to an LLC. Is it different once you own the property? Or do you get a mortgage that is split up as a tenancy in common or joint tenancy?

@Will Barnard

So are you saying list it far below market and try to get offers above asking? Being a somewhat newer agent, I know above listing offers are common in places like Hawaii and San Francisco but I was unsure of here.

@Joe Norman

But this goes back to the original question that nobody seems to want to answer

If their priority is getting rid of it ASAP (and condos in this complex are sitting for 150-250 days), then what exactly is the best interest of the family?

If they want it gone ASAP, they’re going to have to accept a lowball offer.

So what is my responsibility to them? To push them to hold out for the best offer? Or honor their wishes to offload it ASAP?

Offloading it ASAP will result in cash offers that are 50-70% of the lowest fair market value for this property (50-70% of about $32-36k)

But if it sits on the market for 150-250 days then it could reach $50-80k. But that does not seem to be the family’s priority.

So then my question comes back around of: it some random flipper is offering them 50-70% of that and I can match it, then have I not done everything in my power to do my best for them yet I can still procure the property without them sacrificing anything.

It seems as though most responses are ignoring that the family wants it gone ASAP.

@Charlie MacPherson

If the family wants x dollars to sell it ASAP, better me to give it to them than some stranger.

There will be meat left on the bone whether it’s sold to me or to some random wholesaler/flipper.

If I should push them to be patient and price higher, I will. If I should respect their wishes and get rid of it ASAP, that requires price sacrifice. It has to be priced to move which will inevitably involve a spread.

@Charlie MacPherson

I’m not sure how I appear to be wanting to serve myself over the client.

I am repeatedly asking:

Do I respect their wishes of getting it sold ASAP even at a low price or do I push them to hold out for more money even though they want it gone.

@Charlie MacPherson

The main question I was going after though is this:

The family wants it gone ASAP

They seem more concerned about immediately getting rid of it as it is a “headache” to them, than getting anywhere near fair market value.

So my question is:

What is the definition of me acting in their best interest?

Respecting their wishes of getting rid of it ASAP in spite of price.

Or trying to get the most money for them, even though that would take longer and they want it gone immediately.

The idea of me buying it and reselling it is because there is the “buy it now” price and the actually fair market value for someone willing to wait (these condos in this complex are sitting for 150-250 days).

I can take it off their hands now at a much lower price as could anyone else. But why sell it to a random person for the same price I could buy it for? In fact, if I buy it, I can remove my commission and potentially offer a little more. Then I could wait the 150-250 days for fair market value.

Do you see my conundrum here?

@Ola Dantis

That’s my hope! Waiting to hear back from them. Would love to help the family and also make it fair and help myself all at the same time.