All Forum Posts by: David T.

If you don't have a big wedge of cash, you need a really good deal. This is the business we're in. good luck with it!

Have you any idea how many times this type of question has been asked on these forums? I'm amazed you have had so many responses!

Good luck anyway.

All very self serving, especially you @Joel Owens. Typical of agents, take as much cash as you can out of a deal with the minimum of responsibility so if there's any debate, it's always the seller's fault! lol.

@Ned Carey by "we" I meant Investors generally. My bad!

For the benefit of simplifying matters, lets address the issue on the basis of an average close of $200k per property deal.

Between agents fees and buyers closing costs (around $4k) and other stuff tacked on the the closing we end up paying about 10% closing costs on the average transaction. If you take for example the Buyers closing costs of $4,000 per deal which is straight off the top and we're still paying agent fees of 6% on this which is $240 per deal, $2400 for 10 deals and $24,000 per hundred deals. We have often tried not to pay this or asked for the buyer to pay it and the agents all get really hissy about it.

So looking at the bigger picture if we're getting deducted around $20k in closing costs per deal and 6% agent fees on  this is $1200 which seems to be unreasonable because this is money other people are getting and we're effectively being charged fees on funds we never even get to touch.

Most banks for example do their closings "Commissions paid net of closing costs" which means they won't pay any commission on money they don't get at closings. 

Why shouldn't Investors take the same position?

It's really a business policy decision. Do you wish to be seen as transparent in your dealings because if you are not transparent, you're something else. Important decision. 

Good luck with it.

Bernie, get negotiating!

I hope this guide might be of help...

http://affinityg.com/ultimate-borrowers-guide-hard...

When you're looking at lending deals always remember, "if in doubt, include yourself out"

Best of luck!

Azeez, great meetup and extremely well organized. Much appreciated and thank you so much for all your hard work. DT

Mark, it is impressive that you're looking to better your situation like this, but appraisers are not highly regarded by Investors generally speaking, it's the nature of the business. My two cents worth is that a Realtor or General Contractor License would serve you better, especially with your location. Realtor is relatively easy and GC is much tougher and both can be much more lucrative, especially if you go for quality over quantity. 

Appraising is a numbers game based on research and a bunch of rules that becomes a formula. Most Investors will tell you appraisers "know nothing" but I wouldn't be so harsh - most of them know their own names.

Best of luck whatever you decide.