All Forum Posts by: Anil Shah

Hi Hellen, not sure I understand what you are saying. Do you want to show your Florida property in another state? If it's posted in Florida MLS, it's available in all online sites and people who are looking to buy property in your area can find your listings.

Hi Lucas, welcome to BO forum- you will connect with many professionals and learn a lot here. 
Since you are stating out in RE, I would say house hacking might be the way to go. Buying a property as primary, renting a bedroom or two to friends is a good way to start building your RE portfolio. The advantages is that you can buy with low money down and will get a better interest rate. Then after a year or two, you can buy another one. And rinse and repeat. As you are young, it's the best time to do that. Once you have family and get a bit older, house hacking gets difficult. 

As many have mentioned already, I would not do an out of state deal as my first deal. Especially if you haven't lived in the area previously and know the area. Once you get more experience, you can expand to out of state. It's a big investment and many things can and will go wrong - so I would highly recommend to stay local for the first few ones. 
But if you are determined to do so, try to go for turnkey properties on the newer end - less maintenance which is good when you are investing out of state. 

Is this property listed by an agent or is this an FSBO? If it's listed by an agent, you should contact to agent and not the seller. ESP if you are planning to lowball, an agent might be more reasonable to discuss with (seller might get emotional and offended with your offer). Also, since you are unrepresentated, you can talk to agent about the buyer commission. If he gets the whole commission for the unrepresentated buyer, you might as well get an agent for yourself. If not, you can bake that into your offer. But know that some agents don't want to work with unrepresented buyer. Good luck!

Please be careful that they might still be the dog and depending on the breed, your insurance may be in jeopardy. Please send them a letter saying that dogs are not allowed as per the lease they signed and getting a dog will result in violation of lease and immediate eviction procedure. Also regarding the repeared nuances, have you documented those? From what you mentioned, it might be necessary to evict them earlier in which case you need all of those issues documented. If you can hold on until the end of lease term, you can give a written notice and also send an email which would be Notice to Vacate. 

We don't take it as income as long as it is used at closing. It is a new construction where they will not reduce the price in lieu of broker commission to keep their comps high. Also, as long as the house appraises, taking broker commission and using it against down payment and closing costs means lower cash requirements for me which increases my CoC returns. As I have a fixed split with my broker, it is well worth it for me.

I understand your logic but it is a new construction where they will not reduce the price in lieu of broker commission to keep their comps high. Also, as long as the house appraises, taking broker commission and using it against down payment and closing costs means lower cash requirements for me which increases my CoC returns. As I have a fixed split with my broker, it is well worth it for me.

Thanks, Jeff. It is a standard conventional loan and was offered as a promotional financing by builder at the rate of 5% for investors. 

 Thank you. My loan officer just came back to me apologizing for the oversight and informed me that the CD will reflect the right amount for cash to close. I have provided them a letter from my broker about the amount that can be used. All good for now. 

Hello BP Community, 

I am under contract to purchase a new construction home as an investment property and I am the RE Agent. Initially, we wanted to  have the loan under my wife's name only but my the loan officer from the builder's lending arm told us that if I am in the buyer, the RE Agent and the mortgagor (in the loan), I could use my agent commission towards closing costs and down payment. As such, we decided that I will have the loan in my name alone. Now that we are 10 days from closing, I am talking to loan officer to get the Closing Disclosure so that I can know the exact cash to close (I need to move money from brokerage to bank account) and he is mentioning about 2% IPC limit. 

My question is - do I have any recourse if the loan officer now deviates from what he initially told us verbally and in writing (I have the emails and text)? It might cause me financial harm as I have to sell more stocks and might pay short term capital gains vs long term capital gains. Also, I might need to pay tax on the RE Agent commission. Would love to hear more from other loan officers. We are talking about taxes on 15K.

On another note, I had the exact same issues 3 months back but that time, since the LO had not mentioned it, I did not push for it. My research said it was possible to use my RE Agent commission towards the down payment but he said we cannot and I just let it go. However, can I say that I gave a rebate to myself on that transaction for the full RE Agent Commission amount and decrease the cost basis of my house accordingly? That would help me save taxes on the commission.