All Forum Posts by: Stephen Fryer

Thanks @Ryan Howell. Good suggestion. My spider senses weren't tingling in this case. She wasn't asking for a full 3%, but 2% to cover her costs. She even offered to have another agent represent her to demonstrate that the money wasn't going into her pocket. Neither of us want to be burdened with the extra expense or impact on our net position. I think that we just have to be creative to share the pain equitably. Either that or be prepared to walk away from the transaction like @Michael Plante suggested. 

I have three off market investment properties for sale in Indiana. When I say off market, I mean that I am selling them privately. They are not listed on the MLS and I have no seller agent involved in the transaction. I have shared them through my network, marketed them on Craigslist, Facebook and BP. I have a buyer, who also happens to be a real estate agent. She is buying the properties for her own portfolio. We have agreed on price and all the terms of the contract with the exception of the commission. She is insisting on charging a buyers commission of 2% to cover her costs to the broker, who requires that all her transactions go through the brokerage.

Under normal conditions, if a broker or agent came to the table with a buyer I wouldn't begrudge paying the commission, but in this instance, she is representing herself in a private transaction. I don't understand what the fee is for and it seems highly inappropriate. Is it even legal? I couldn't find any state laws or regulations that would apply. Any insights from the collective would be appreciated. 

My pleasure Charlie. Let us all know if it helps.

Hey @Account Closed

Making stuff cash flow in many Canadian cities is difficult. High house prices and rents haven't kept up. In many cities we're experiencing CAP rates of 3-4%. That's why I invest in South Bend. There's lots of opportunity to find properties at a reasonable price with decent returns.

I have properties with both Canadian and US partners and use a LP. It's an efficient entity for me and the Canada Revenue Agency recognizes it as a flow through entity for tax purposes. But there are many ways to skin a cat and everyone's situation is different. I'll pm you with a cross border tax specialist that I use. I'm sure he could help.  

HI @Raj Parasuraman

I sent you a couple of leads for financing that may help. Best of luck. 

Hi @Chris Bodden.

The market in Ottawa is a little crazy. Average price is $506K, Up 18.6% from last year. Making things cash flow is a little difficult, as rents have not kept up with housing prices. I invest in Elkhart/South Bend because the numbers work. You can still find value, with houses at reasonable prices and good rents. 

Hey there @Ron Kumara 

I live in Ottawa and have been investing in South Bend, IN, since 2016. Let me know if you have any questions and I would be happy to share. 

Hey there @Matt Vukovich.  

I live in Ottawa, Canada, but invest in both South Bend and Elkhart. You may want to connect with @Matthew Parrott. He has a local meetup and face book group that's pretty active. 

Stephen

Like any city there are good neighborhoods and bad. I have many properties sprinkled throughout South bend in C type working class neighborhoods. It help to have strong knowledge of the area as things can change from one block to the next. 

Sometimes property management firms make a conscious choice not to manage in certain areas as they are high touch tenants that require a lot of energy and time. Margins are pretty skinny in that industry and time is money,

 I'm using Amy Warner at Berkshire Hathaway at the moment. She works hard and is reasonable at 8%. I'll PM the details.