All Forum Posts by: Derek W.

I have had some short sales where I was the listing agent, the buyer's agent, and the managing member of the LLC that was purchasing the property. My broker just groans and reaches for the tums when she sees me coming!
Which book are you guys refering to?

If there is a commission being offered, most brokers would not allow you to subvert this to another brokerage if you are a principle in the transaction. This would be something you would need to work out with your broker, but most I have talked to over the years would require some fees for the liabilty of the transaction. Now, if there is no commission, like when buying from a trustee sale, that's diferent. But if you are buying an REO with a commission being offered, you can't just "turn off" your R/E license. However, you can buy in an entity, therefore clouding the buying as a principle issue, but why would you? A lot of REO agents are no longer allowed to double end deals, so they set up their own buyer's agents to handle a walk in or sign call. There have been too many law suits already for non-disclosure etc. from dual agency. I have yet to have any deals where letting the REO agent double end the deal would have made any different to me getting my low ball offer accepted or not. Might as well make the commission to cover closing costs, and keep your broker happy! This may be a regional thing in my area, as well, so take it with a grain of salt, please.

David's right. If they are supplying leads and education, just take what you get with a smile. If not, there are other brokers that you won't have to even have this split conversation with. There are some brokers that only charge a flat fee per transaction, and others that have you pay a fixed split until you cap, then you keep 100% the rest of the year. So you don't ever have to worry about splits.

I don't know how to buy directly from the lender. They are all automatically assigned to a Broker. But still posible to get 65% ARV minus repairs straight out of the MLS in some areas of SoCAL. (Riverside and San Bernardino Counties.) Besides, why would you want to go around the agents, they are so much fun to talk to!

Only a load calculation can give an accurate answer. The accepted estimate is that the HVAC unit should provide 1 ton (12,000 Btu) of air conditioning for 400 to 500 square feet of building area. However, this rule fails to take into account how well the home is insulated, how well it's sealed and the local climate. In a very efficient house, 1 ton could condition 800 to 1,000 square feet of space.

Like Taz said, talk to the broker. That was very unprofessional…however, as unprofessional as that was, I agree there is some truth to what you were told. When I work buyers I find myself tossing out short sales from my pile, mostly because I can’t trust the agent working the short sale knows what they are doing, and may lock my buyer in for months trying to get it to close, only to fall out at the end. I can get a bank owned in escrow in days. Just playing the odds. The sad thing is, I list and negotiate shorts sales as my business!!! But because of that I also see that sometimes I will have a cash offer well above the banks bpo price, and it will still take 3 weeks jut to get an approval to get into escrow due to them “accidentally†closing the file and requiring me to resubmit the entire package, etc.. Sometimes you can’t fix stupid.

And wouldn’t you guys agree that at some point it is simply up to personal preference? What you know and what you enjoy. Some investors seem to love large apartment complexes. Some want free and clear SFR’s in solid working class neighborhoods. Some seem to have an affinity for commercial, and then others want to dabble in all of the above plus some! What an exciting time for those who have money to invest, huh?

I am glad that you have had success with not having to list some of your short sales you have worked on. It sounds like you have a talent for the negotiating. You are right that some lenders do not require listing agreements to fulfill the requirements of a "complete package" but there are some lenders who do. With those lenders, without a listing agreement in the “complete package†you aren’t getting assigned to a loss mitigator or negotiator until you do. The lender cannot “force†the seller to list the property, but they can refuse to accept a short pay on the note if that is one of their policies.

I write all of my own offers for REO propeties, and list for them for sale after they are rehabbed. A broker will require a cut of the commish, so you can discount it if your broker allows, but can't waive it entirely. I have found no motivation for letting an REO agent double end deals, as it is really the asset manager of the property making the decision, not the REO agent. Send me a pm and I will give you some tips about interviewing potential brokers. Some are more investor friendly than others, I have found. And yes, you will have broker info on all contracts. It is required by law.

Yes, they can be found at any Barnes and Noble. There is book two in the series "The Millionaire Real Estate Investor." And book three "Flip: How to find, fix and sell houses for profit." (By Rick Villani and Clay Davis, two of the nicest people you will ever meet!) Book four is the brand new one Gary Keller just put out called "Shift" about working real estate in a shifting or declining market. Very timely, huh?