All Forum Posts by: Mike Sattem

Hi @Mason Keeler,

Most banks won't negotiate much on price, i.e. it listed at $100 and you offer $40 wont work. However, they have balance sheets to cover just like a traditional seller. Typically they will lower prices on a set schedule, so I try to see what their price drop schedule is by looking at how they have lowered prices on the home in the past, and just before a price drop make a lower offer to see what they say. In my experience, most banks are doing price reductions every 4-6 weeks. 

Very Confused regarding the insurance issue some folks are talking about. Almost all of my rental homes have wood burning stoves or fireplaces, and I have never had any issue gaining insurance through any of the major players, i.e. USAA or Nationwide with little to no cost increase. My tenants love the wood heat, and as long as it is swept every fall, their is little to no risk. Worst case scenario, the home catches fire and burns down. Having had a house fire in a rental before, I can state that it is not nearly as horrific as it may seem.

@Khalia Luff,

As an agent, you will list the property for sale through your brokerage, however most brokers/Principal brokers will negotiate either no fee on your end to list it or at most (in my case) I cover the royalty fee (we are a Century 21 affiliate, so we pay 6% on any commission) and that is all.

@Samantha Klein,

I would kill to find multi-unit that was updated in the 70's! In my neck of the woods everything was built in the Teens and 20's; so everything I buy is knob and tube wiring, lathe and plaster, etc. A quick and easy way to update this would be to install GFCI outlets at $15 each instead of re-wiring the building. Additionally, I think you will be surprised to find out how much of the smoke smell you can remove by pulling everything out but leaving the walls intact. Replacing carpets after sealing floors, walls, and ceilings with a good oil based primer and you can eliminate most smells. Additionally, pre-fab cabinets at Home depot can be bought in sets with counter for $1,000 to $1,500 per kitchen.

@William J Hamm,

Not sure of the standard Realtor contract in Florida, but in Oregon, the seller is still responsible to pay a commission to the prior listing broker if the seller sells, even FSBO within a certain time period after the listing expires if the sale was due in any part to the advertising done by the listing agent. AKA, you see the listing, it expires, you buy it FSBO two weeks after the expiration, the listing agent has legal grounds to request a commission. Just something to think about.

@Jack B.,

Anything that you did, you will need evidence of, as the tenant can request proof of work. I include copies of everything, to include photos of the entire property, both good and bad.

HI @Lindsay McLaughlin,

Having dealt with similar issues I think it is important to dress for the seller. AKA, if I am meeting with an older gentleman, its cowboy boots (I live in the boondocks), jeans, and button up short sleeve shirt. Old ladies get the khakis with the long sleeves. Out of towners (Portland, Seattle-big city folk) get the nice dress pants with a sweater or vest. Working class local folks get the work boot, jeans and Nice T-Shirt look.

I want the sellers to be comfortable, so I dress for each situation independently. 

@Jarod B.,

I agree with @Joey Budka on all of this. Most brokers will take a split (60/40 or 70/30 are decently standard for new agents) and a low desk fee, if anything at all. You must, must, must be careful about disclosure, and you can, and will get your pants sued off. Case in point, I just bought a house off market for 2/3rds of the county tax assessed value from an 86 year old out of state owner. You can bet your britches that I am still worried one of his kids will find out how little he sold it for and sue me, claiming I lied, cheated, and committed elder abuse.

@Damian Mathis,

I read the court filings in the online version of the paper to find the probates, and then search my county's property tax assessor website to locate the address. I also have purchased all the data from my county assessor in a spreadsheet, which allows me to more easily search by name, and then automatically see all the pertinent details of the home to see if I cam interested in mailing them.

Hi @Account Closed,

My biggest factor is what I am looking for at the moment. Meaning, why would I sell an income producing asset to make $30K, if I don't anything to do with that $30K. I rehabbed a house in the spring with the intent to rent, but a great commercial space came up when I needed the money. I chose to sell and put the income as the down payment. I just finished rehabbing another home that I was planning to sell, however an opportunity to rent it out to a state agency above market rents came available, so I will hold onto it as a rental.

Having $100K in the bank is awesome from flipping houses, but if all you are going to do is purchase other cash flowing homes with the money, then why not it BRRR it from the start.