All Forum Posts by: Ursula B.

@Jay S. I'm new to creative financing but my last deal was made possible with the info I learned here on BP! Net price of $21,500. Opened a personal LOC with my credit union to pay cash. All in of ~$32K with closing and rehab. Then went to my other credit union and got a secured business loan. They financed 80% LTV (no seasoning, appraisal required). Loan of ~$32K, with closing I'm only ~$3K out of pocket. Positive cash flow is $250 a month. I manage the property myself.

@David Johansen Welcome!  I used to live in Kernersville, and still have property there.  Planning to return next year.

@Elsa Woods Congrats on getting your broker's license! I was looking for a local agent late last year, and when no one would return my calls, decided to just reinstate my WSRAR/MLS membership. I'll earn the commission if no one else wants to!

Looking forward to connecting with the two of you!

@Jay Hinrichs In the second example I referenced it was an in-house brokerage and on the buyer's first visit they completed the builder's registration form and checked they were not working with an agent. I agree with your sentiment. I tell anyone looking at new construction do not register with the builder unless you intend to complete the transaction on your own. Most people that wander into the model home unescorted don't realize that the nice lady or gentleman works for the builder until they are signing the contract. It's too late at that point.

@Cam Mckin I have seen it go both ways.  I've seen where the buyer showed up without an agent, then went off and got an agent, and the listing agent agreed to split the commission (I was the seller in this situation but had a listing agent).  I've also seen where the listing agent refused to co-broke because the buyer said they didn't have an agent, which makes the listing agent the procuring agent (this typically happens in new home sales).  That buyer was responsible for paying their agent because the other broker wouldn't co-broke.

Best advice is to find a buyers agent and explain the situation before you sign anything with them.  All they have to do is place a simple phone call to the listing agent to find out if they will agree to pay their commission.

Even a verbal offer makes the listing agent the procuring agent.  Basically once the listing agreement is in effect, the listing agent is due a commission upon the sale if a buyer is found during the listing period.  For example, if you saw the For Sale sign in the yard, rang the doorbell and offered the owner cash, the listing agent is still due a commission. Because you've already identified yourself as a ready, willing and able buyer, If the listing agreement expired today and you bought the house tomorrow, the listing agent is still due the commission.

If you want a competitive advantage find out what your competitors are doing and do something different. I do 3 things differently than my counterparts in my area and they pay off every time, but I believe in quality over quantity. I give full disclosure so usually the folks that make it to a completed application are quality tenants. All about  efficiency so I'd rather have two great applications than  have to sort thru 20 applications to find those two great applications. Saves time upfront and on the back end.

@Jedd Braunwarth   Right now we take faxed and emailed applications.  They have to include check stubs and copies of their ID so it's easier to have them either fax them or email them back to us.  I do not follow up unless they submitted the paper application on the spot and I'm waiting for the rest of the documentation.  We do not process incomplete packages, so I'll make a phone call at the 24-36 hour point and follow up with an email to remind them of the deadline and that only completed applications will be processed at that point.  That usually gets them moving on the documentation if they are really interested.

To save time and money since we don't require an application fee, we tell everyone upfront that we require credit/background/criminal checks security deposit and first month's rent in certified funds before lease signing.  We are also upfront about our automatic disqualifiers.  So if we get a complete application with all required documentation (check stubs, ID, etc.) then we know they are serious applicants.  We deny incomplete applications and those that disclose automatic disqualfiers first, so there's no cost associated with those apps.  We then process the rest one at a time in order received, and the first approved applicant has 3 days to produce the certified funds and sign the lease.

We have not had anyone that we accepted turn it down.  Since we are very upfront about our requirements and the process, usually someone that takes the time to turn in a completed application by the deadline is a serious applicant and can meet our criteria.

@Jedd Braunwarth    We make sure our homes are in pristine condition.  They look good and smell good.  We stage the kitchen and baths because that's what sells homes.  I point out any updates to the home (new carpet, fresh paint, new appliances, etc.).  We look up comps and stay $10-$20 below (we make it up at renewal).  I tell all prospective tenants that we've had a lot of interest in the property (always true) and give them a cutoff date for returning applications if they want to be considered in the first round.  Also, we don't charge an application fee - we see it as the cost of doing business since we typically rent within the first two weeks - and we always get multiple applications within a couple of days of the open house. 

I also give everyone an application with a cover sheet that has instructions for how to submit a complete application package. They also get a flyer with pics so that they remember our home.

Good luck to you!

Maybe markets are different, but where I'm from the listing agent does not have to pay the buyer's agent if the listing agent procured the buyer.  In this case, you made an offer on a home without a buyer's agent.  That means the listing agent procured the buyer and is due the full commission that they agreed upon with the seller.  Even if you try to circumvent the listing agent and still purchase the property, the seller will owe the listing agent the commission.  If you hire a buyer's agent at this stage in the game, they will probably have you sign an agreement upfront that says YOU will be responsible for their commission or fee since the listing agent has no duty to co-broke at this point.

Good luck  to you!

@Greg Penny Adwords was mentioned too! Do you mind sharing your initial advertising budget? How long did it take you to get 10 properties? 50 properties?

Thanks!