All Forum Posts by: Nathan Grabau

I think you have to consult your contract to see what your deal is with commission splits. If you do not have this written into your contract then you need to get that into it or switch to a brokerage that lays that out clearly. I am not familiar with PA RE law, but I would assume if you did not have that in your contract, you have very little recourse. 

 Oh I mean you sell a 100k note for potentially 85k. Also the bank will likely want to see the appraisal you did when you sell the note, because the buyer of the note will value the note in part off of its loan to value ratio. 

From the banks view, (this is an extreme example I am going to offer to make a point, I know this isn't what you are doing) you buy a property for 100k. You do nothing to it. Sell it for 1m to someone with owner financing and then sell 800k of the 1m note to a bank. They know the collateral is not worth 800k, let alone the 1.1m they need it to be worth to put 800k on their balance sheet.  

 If finding off market deals was not a lot of work then you would just do that too. Off market deals are gold, and you want to make sure your Realtor sends them to you and not the next person. 

I could see that number going down below 3% if there was volume there or higher priced deals. But one off's, no way. 

I'll take 1% just to do the transaction, but there are wholesalers take 10-15% of a deal or even more in hot markets. 

And on my out of state deals when I use another broker, I am not negotiating with them, I negotiated with the seller. There is very little value in competing with people on your team for 1 or 2% from the investor side. 

Here is another chart, total listings in Fort Collins, CO, and most CO charts look like this. We are seeing another collapse in available inventory like we did in the late 20-21 and then late 21 to early 22 run up. 

I have 3 properties around Ames, Iowa that I purchased at their price point and I have been really happy with their performance. Really strong tenant base that seems content with being long term renters. If you send me a DM, I can get you in touch with the team I use there. I got really lucky as my real estate agent their is also an investor with 100+ doors, and runs a property management company with 100+ additional doors. By buying and selling with him and his team, you instantly reap the rewards of their scale. 

I think they key for a HML would be to make sure that their LTV ratio's are met. If you are adding value through a rehab, this normally gives you more room, that being said, you shouldn't have to do this. Legitimate concerns that I would have and a HML will have:

2nd sale appraisal, if you have not done any rehab to the property, it will be hard for an appraiser to justify you selling it for more money than you bought it for. Second, I would be very concerned about how hard it will be to sell the 1st position you created. Secondary financial markets are incredibly unstable right now, so I would guess that you take a discount on the paper that you are selling. Before doing this, I would talk to who you are going to sell the note to, see what their underwriting standards are, and make sure you aren't going to have to take a 85 cents on the dollar haircut in order to get the cash out of the first. 

If rent is due on the 5th, they have until the end of the day on the fifth to pay, then each day after that, regardless of what time they pay is another day late. 12:01am on the 6th is one day late, so 12:01am on the 7th would be two days late. 

For future leases, I would recommend a higher day 1 late fee, like $25-$100 and then another $5 a day after that. You do not want to have to be worrying about late fees, so I would give your tenants more than $5 of motivation to pay on time. 

I would not do this unless the property is very hard to rent. I would much rather take a $100-200 cut to increase tenant interest, than lose 45 days, deal with 3 large dogs in the property, with someone who is emerging from bankruptcy. 

If you do, I would make sure you get first months rent and the deposit at signing, so if they change their mind about moving you are not left with nothing. 

Traveling nurses tend to travel by themselves or with one other person and do not need additional bedrooms. 

This is really market specific, especially as different states handle foreclosure/ short sale rules differently. The price is also going to depend on your local market. The way I would think about a short sale is your are getting the house for the fair market price that is below what the mortgage is now, not that you are getting a house for below market value and it is below the mortgage value. 

I would call a local Keller Williams office and ask to be connected with an agent that has experience with short sales. A good bs test is if they were not an agent during the great recession, they probably do not have experience with short sales.