All Forum Posts by: Tchaka Owen

@Mike Cumbie - dual is allowed and welcome in Florida, though as transaction brokers - so limited fiduciary. The rest of what you wrote is on point. No problem sharing commission here either. 

Not biased against you, rather you're not thinking through....despite a few hints I'm dropping. That's ok though, you may or may not get the best deal - but you won't know, so it doesn't matter.

A buyer or seller wants the best net price. What you and other people who look to get better deals by going after an agent's commission seem to forget is that a commission is only part of the transaction. You're dealing with humans in a sales environment so treat the agent (ie, human) with respect and you'll likely do better. Many agents are in it for more than money, there's a level of satisfaction in helping people. It's fair to say that most agents I know go the extra mile for nice clients. It's not unusual to make (or save) them several percentage points by going above and beyond in a transaction. Try a bigger picture approach. 

PS- your experience with leases aren't relevant. 

@Zee Anon - I am a licensed (and practicing) agent in addition to being an investor. 

1. So use another realtor, I don't care. When covering both sides of a deal, an agent has more work to do. The time I'm not spending there I can use to prospect...or whatever else I want. There are a number of agents who don't value their time and will do anything for a deal, but the best agents often won't. A smarter approach is to ask the listing agent if there's a benefit to working directly with him/her. Let the agent hook you up. Threatening does little for you. Put it this way, if you pulled that move on me, I'd ensure the seller makes more off you. And you'd never know it. :-)

2. Listing agents are required to submit offers on properties they list. If you make an offer that cuts into an agent's commission, it's no longer just an offer on said property - it's now an attempt to modify a contract to which you're not a party. If I'm that listing agent, I'll kick it back to you. Not every agent will (likely because they don't know). I do.  

And no, the narrative is about you thinking that you're correct about dipping into a realtor's pocket. Why don't you dip into the seller's pocket? Next time you visit your doctor, pay half of your bill and walk out. Do that to your landscaper too. Maybe your next client can give you partial payment. The list is endless.

I recently saw a multi advertised at over 9%; when I ran my numbers, the cap came to a little under 5%.

They often subtract taxes and insurance while conveniently leaving out vacancy, maintenance, utilities and property management. 

@Zee Anon - Keep in mind that the agent can say "no" to giving you 2%. An agent is not required to submit such an offer either. 

I agree with Brie as far as involving your agent and broker. Also, a lot of people are all talk about suing...merely hoping to scare you. IF you are sure you followed your contract, you have nothing to worry about. Just let them know you'll countersue for fees (and maybe more). No matter how this goes, my strong recommendation is that you do not speak with the sellers attorney. Now, re-read that last sentence. There's nothing you will say to him/her that will help your case. You may think it will, but it won't. If they want to sue, let them. At that point you can involve an attorney. Until then, be cool. 

@Irina C. - let's chat soon. I'm currently in Brevard after 12+ years in Broward. 

 Verify this with your lender. I do not know of any traditional lenders who will give money on a home that cannot be insured. In fact, they are named on your insurance declaration page.

@Tracy Munger - I agree with @Gina Cardarella...big red flag! It is clear that they're stalling in the hopes this goes away; unless the agent is clueless (which is entirely possible), she knows you're waiting for the updates.

It is my opinion that you don't worry too much about the financials. Why is that? Because at this point, I believe it will serve you better to recreate them. You already know they're calculating using a method that's not 'honest', so figure out what each unit can bring in with a yearly rental. You can find taxes online and it's easy to estimate insurance and any utilities you're responsible for. As a Pro member you have access to the calculators. What it spits out is your new offer (yes, withdraw the current one). Be sure to remove any emotion, if the deal doesn't work you move on to the next. It's about the numbers. Good luck!   

@Johnny Ruiz - Two comments:

1. The process to getting it is a short sale. She lists the house, you make an offer, she fills out hardship papers and you see if the bank will accept the offer. Given that there appears to be a good amount of equity, the bank might not go for it.

2. Looking at the numbers you provided from an investor standpoint, if this house is truly worth $1m and rehab is $150k, you can make it work at $600k (even a tad higher). At $200k rehab, I'd top out at $520k. Put it this way, if you can't make it work for more than $430k, someone else will. So you should ask yourself how badly you want this deal.