All Forum Posts by: Tchaka Owen

The best advice I can give is that you change your mindset.

Find a very good agent and pay 6% to get your home(s) sold and you'll be very happy. There are many agents who don't do much beyond listing a property, it is because of those agents that people feel paying 6% (note: 5% isn't an option) is a waste; and that's understandable. A proactive agent will net you more money with you paying 6% than will a crap agent being paid X%. I know this first hand.

If you have the time and feel that you can sell your home, then flat-fee it while paying 3% (yes, a full 3%) and handle that half. 

If you're ok with appraisals and all the other jazz, what's the purpose of hard money? Go find some bank product and pay 5%.

Hard money lenders are asset based. They will likely check your credit scores and often verify you have money in the bank for whatever you're going to need. That's it. No paystubs, taxes or any other items.....unless things appear questionable at which they may ask a bit more. Why? Asset based. 

HML don't want the headache of FC'ing on you, but if they're lending you $100k on a property that you're going to spend $30k on and sell for $200k, they're comfortable lending to you at 10-15%. If you can't pay, they'll be ok. With today's software, they don't need a full appraisal. Too many tools out there to help. So let's say the house truly comps out at $195k...….so what, the numbers still work. Some HMLs will have a drive-by inspection just to make sure it's there and they'll charge you $100 for it. That's fair. But not a standard appraisal that costs $400-500. And any number higher than that is certainly lining someone's pockets.

If you send me a check for $500, you'll get the same end result of nothing.....but you'll also save $865!

She's from down under!

@Logan Miller - how much did you have them put in escrow until they moved out?

To be clear, negotiating after inspection is not frowned upon. What is frowned upon is BS negotiating after inspection. In other words, if your report comes back with $6500 worth of potential fixes, and you ask for $4500, the seller offers $3k and you settle at $3500, that's fair. On the other hand if you go back and ask for $10k off, you're not serious. Back when the market was improving and there were lots of bank-owned properties, an investor I worked with got blackballed by several REO agents because he kept doing that. It ended up costing him deals. Integrity matters.

@Patrick Perez - in addition to agreeing with everyone above that you should sell, what's your reason for accepting 70% reimbursement that was 100% their fault? Are you a very kind man?

@Isaac Geller - @Jay Hinrichs is chock full of great advice (quite frankly, I don't know how he accomplishes so much and still has time to contribute here!!). Please digest his comment.

I want to share something that will support his comment. 3 weeks ago today I flew to Indy to check it out and while there, my colleague showed me a home that is owned by an Israeli. He came in, didn't know the ropes, overpaid big time for a home he's converting. Got screwed over in the rehab and is financially deep into a home he cannot be lived in yet (and has code problems). If he's lucky, he'll walk away with a $150k loss. Yes, if he's lucky. It's likely his loss will be greater because my colleague is the only one who has been honest with him and the Israeli doesn't return his calls (perhaps embarrassed). Each day is more money lost. 

Indy has good deals, that doesn't mean everything we touch is gold. 

This!

 For clarification, do you currently have both sides rented or just one? How much are you collecting?