All Forum Posts by: Account Closed

Questions: Can anyone recommend a good agent for multi-family commercial in North Florida? Looking in G'ville and Jax.

I would think that all Realtors are good. 

• they have a licence
• they have been trained in the ways of representing others for a fee
• they have to go to continuing education courses
• they are regulated by the state
• most are bonded and have error and omission insurance
• they are members of the local MLS
• members of Boards of Realtors
• they are motivated to earn income from listing and selling real estate
• most are not real estate investors
• most are sincere and anxious and ready to earn a commission

Licencee are trained to represent others for a commission and to protect the public from fraud. 

I think what you are looking for is someone trained in the ways of real estate investing - an agent that will:

• Introduce you to FSBO's - Expired Listings and other real estate opportunities
• Will be your fiduciary representative
• Will make offers for you on suitable real estate
• Who understands creative financing; delayed settlement, seller assisted financing, assignment, wholesaling, REO, tenant selection, soft money mortgages, tax sales
• Who will be responsive to your financial goals and a person of integrity and trust
• Help with direct mail and street marketing to locate transactions
• Housing and rent court marketing
• Absolute aware of financial and contract clauses as well as contract engineering
• Can assist in - delayed settlement - automatic extension, performance mortgages, subordination, principal mortgages, options and joint ventures
• Aware of bidding on REO, forclosures, tax sales and public auctions
• Up to speed on commercial real estate, lots and land as well as businesses with real estate

How should you treat this wonderful person (if you can find one) -

• They should have a commitment from in the form of a Fiduciary Buyers Brokers Agreement
• Your agreement to pay them a commission on any non-listed deals they bring you
• A bonus agreement for great deals that you close
• A gas budget - or a cash payment for gas 
• Kind words and respect
• To be sincere and active with the agent
• Respect from you
• First class training on how to represent you
• Sometimes an equity interest in the great deals the agent has initiated
• Listings when you are ready to sell
• Your cooperation - all your financials, tax returns and other information that will help your agent close deals
• A few free lunches ----

Good luck --- Charles

Charles Parrish from Baltimore, Maryland

replied less than a minute ago

Revised response and correction:

Good luck with your adventure in the real estate business.

Here are some tip and ideas for you - only my opinion.

1. Make Low Ball offers - this is done to smoke out the seller's base line need
2. Understand how to do an APOD (Annual Property Operating Data sheet) and how to determine C.A.P. rates - invaluable when dealing in income properties. Need to know the real N.O.I.
3. Always us a study period - take your time - understand why seller is selling to you - has it been on the market, for how long any offers any price reduction, what are the comments on the listing, what's wrong with the property and the deal?
4. Second stage negotiations for lower price - always be negotiating - don't let seller overwhelm you - be prepared to win the negotiating - understand WHY YOU ARE negotiating and WHAT'S IN IT FOR YOU!.
5. Always ask for subordinated financing from seller
6. Think about a performance mortgage from the seller - payment is subject to the successful performance of the stated income disclosure
7. Ask for "Can Adds" what can the seller add to sweeten the deal - money back at settlement - grantees to survive settlement, allowances for new appliances, right of possession and management before settlement
8. Seller held PRINCIPAL MORTGAGE (one with no interest -self reducing)
9. Assumption of existing or proposed financing without qualification and release of liability
10. Seller to contribute $ for needed repairs to be put in escrow.

Don't over pay - remember ----- sellers are liars - confirm everything - taxes, insurance, income - check leases - how long have they been a tenant - have building professionally inspected and written report.

Do not give a large first deposit until your inspection report is completed (this is a good time to do a little second stage negotiations)

Always give deposit to third party escrow with escrow instruction. Without escrow instructions you deposit could be held for a long time.

Do all of the above and you will be successful - good luck

Good luck with your adventure in the real estate business.

Here are some 

1. Low Ball offers
2. Understand how to do an APOD (Annual Property Operating Data sheet) and how to determine CAP rates - invaluable when deal in income properties. Need to know the real N.O.I.
3. Always us a study period - take your time - understand why seller is selling to you - has it been on the market, for how long any offers any price reduction, what are the comments on the listing, whats wrong with the property?
4. Second stage negotiations for lower price - always be negotiating - don't let seller overwhelm you - be prepared to win the negotiating - understand WHY YOU ARE negotiating and WHAT'S IN IT FOR YOU!. 
5. Always ask for subordinated financing from seller
6. Think about a performance mortgage from the seller - payment is subject to the successful performance  of the stated income disclosure
7. Ash for "Can Adds" what can the seller add to sweeten the deal - money back at settlement - grantees to survive settlement, allowances for new appliances, right of possession and management before settlement
8. Seller held PRINCIPAL MORTGAGE (one with no interest -self reducing)
9. Assumption of existing or proposed financing without qualification and release of liability
10. Seller to contribute $ for needed repairs to be put in escrow. 

Don't over pay - sellers are liars - confirm everything - taxes, insurance, income - check leases - how long have they been a tenant - have building professionally inspected and written report.

Do not give a large first deposit until you inspection report is completed (this is a good time to do a little second stage negotiations)

Always give deposit to third party escrow with escrow instruction.

Do all of the above and you will be successful - good luck

Did the agent have you sign a Maryland Disclosure - if not that is an OUT.  Did the agent have you sign a lead paint waiver - if not - that's an out.

Are there UNDISCLOSED material defects that were no disclosed? if so a good out.

Take a look at all of the docs you signed.

Did the seller offer you seller financing after the contract was signed - did he offer it after you decided you wanted out?

What were the terms of the seller financing?

I can offer you more ideas - but need to know more about your deal ----

Oh, if you get your $50,000 back - what are you going to do with it?

How much more do you have to pay at settlement?

Charles

Ask for his license number - and references 

Don't give him any advance money.

Don't use Hard Money - there must be a lend locally that would love to do business with you.

Find a relative or a friend with equity in their home - borrow against it - give them a percent of your profits

Lenders - hard and soft lenders are in my opinion predators!

I have over 10$MM in real estate and they still want to jump thru my butt for a  $100,000 loan on a free and clear building worth $175,000 - I just don't like lenders or mortgage brokers! 

When I started in this business I had the same issues (seems like I still do at age 75), lenders like to see us begging for their money!

So ------- get creative   ---  here are some ideas for you ---

• Control and Roll - don't buy - control real estate - flip at public auction
• Use a long study period with the right to assign - make sure you have a possession clause in your offer 
• Ask seller to refinance - seller keeps the cash and you take over the mortgage
• Offer the seller 20% more for the building if he'd take back a principal mortgage (no interest) with payments that will directly reduce the principal. 
• Partner with the seller - you do the fix up - you sell - split the profits
• Partner with a person with great credit or cash -split profits
• Make an offer subject to a public auction - he gets what you offer and you get the overage
• Take option to purchase - sell your option
• Take over all his his debts and mortgages - you get the deed

There are more creative financing formulas - hope these few will help you.

Read Acres of Diamonds.

Invest locally

You'll be more in control

I suspect that you and the family are still emotionally attached to the old homestead and you are wondering if you should keep it - do a business Bed and Breakfast - or take the cash and give up your attachment to the old place ----- well ---- only you can answer those questions ---

What would you do with the cash - pay bills - invest - savings - vacation - give most of it to the church -?

Sure SELL IT "as is" for cash - as an auctioneer for many years - you may want to contact a local (good) auction company to sell it as a"reserve auction" or to get the highest bid, offer it at an "absolute" auction - take the high bid and your money and forget the personal memories.

Have fun with your decisions -----

Ed, there is not enough information to answer your questions.

• did you foreclose the right of redemption
• has the judge sign off on your tax sale certificate
• is the property occupied or vacant
• do you have to file an eviction of the existing owner or tenant
• do you have enough money to foreclose
• do you intend to get a mortgage on it

I have done many tax sales deals - my objectives could be .....

1. sell it now after legal ownership is acquired

2. clean it up and sell it for a profit

3. keep it to rent

4. offer it at public auction - let others bid against others to push the price way up

5. sell it back to the owner

6. put together a joint venture - raise money to renovate it 

If you are really going to settle on this property - you could ask the owner to give them a 60 day notice of rent increase - send this notice effect September 1st, (don't miss this mailing) raise the rent to the number you want - if the tenant agrees to accept the rent increase - great - if not - you would be in a position to eviction them based on the non-payment of the increase or they will just move - you may want to say in that increase rent notice that there are plans to improve their living conditions, supply new appliances and whatever you plan to do.

Do this will help get what you want without vacancies and still have a tenant who will be happy to comply to the increase.

Cash flow is King - don't kill the King.

Charles