All Forum Posts by: Amber Butler

Mark H. I do care about the agent's interests, but on the other hand, she could not answer my objections as to why I think my offer is justified because of the crack in the soil line. All she said was, "the seller wants $50,000." I completely understand that their is work the agent has to put into it, on the other hand, she has not given me a reason, nor I believe explained it to the listing agent why I am offering the price that I am. Isn't she supposed to do that?
She has said it is an up and coming neighborhood and I guess to her that is reason enough for us to pretty much give full asking price. Besides that, I am not sure the comps would justify putting in more than 55k and getting a good ROI. I have seen some of the flips people have put out in my market. I am way to picky & precise to simply put out a flip that is half way done because I had to spend so much fixing the soil line.

In terms of finding good agents, I definitely think there are some good ones, but I don't know, maybe I have not found one that has fully met my expectations.

Well I don't really think on my side that I am being unreasonable. I am trying to get the seller to play ball. As far as financing, I am trying to flip the property and am using hard money. It's not like the property is in the best condition, there is definitely work that needs to be done. On the other hand, I could care less whether the agent feels that they are getting too low of a commission to do their job. The realtor knows we are dealing with lower priced properties to flip because we are dealing with entry level price points, therefore her commission will probably be low regardless of whether I purchased this property or the next property.

Bill Gulley Yes, we do have those agreements, but I have not signed any exclusivity with this agent or any type of agreement of that sort thus far.

Hello all. Newbie Here!

I am looking at a property that I would definitely like to make an offer on. From what I have supposedly heard from the agent, the seller is extremely stiff on the price. The house is listed at $53,000 and my realtor said that the seller was offered a $50,000 cash offer a couple months ago and would not take it and that the seller wants full asking price. Then my realtor said that the seller is finally starting to come around and is willing to accept $50,000.
The only reserves that I have is there is a cracked soil line near the kitchen and possibly cracked under the base of the house through the concrete that leads to the street. For that reason, and with all the other repairs, we want to put in an offer of $40,000. However, my realtor says that the seller is an investor, lives in Indonesia, and has no attachment to this house, and for that reason he does want the full $50,000.
Either way, my realtor pretty much will not put in my offer which is extremely frustrating. Can someone please explain why my realtor won't put in my offer? It's very frustrating.

Monica Breckenridge there is a company that I think has what your looking for. They are called realprospect.com I have never tried them before, but I have heard good things. If you decide to try it out, let me know what you think.

Ann Bellamy Thanks so much Ann. It's nice to hear other people's opinion and especially about Brookview.

Nathan Emmert Thanks so much. It definitely puts my mind at ease hearing someone say that we actually are getting a good deal.

Brian Hoyt I didn't realize it was standard for HML to ask for money upfront and figured they would would just require the interest payments and the points. We weren't so much worried about the 1000 up front as much as worried whether it was standard practice to ask for any amount up front when dealing with HML.

Nathan Emmert Yes, they are funding the purchase price and the rehab. I was just under the assumption that even though I am dealing with hard money, that these terms were a bit extreme.

Nathan Emmert I don't think when we talked about it that he necessarily advised me to do it, but he did not advise against it. For example, I had asked him the question of," When presenting to private lenders, how can I make sure that I am in compliance with SEC laws?" From that point, he did not advise me not to approach family members for private lenders.

However, private lending is not our only option. We have been approved by Brookview for a loan, however the terms are a bit against our favor.

We were approved for 100k, yet we can't use any other creditors, the rehab can't be more than the purchase price of the house, the rehab has to be less than 35k, we have to pay $1000 up front and need 20% reserves in the bank. The property also cannot be less than 1000 sq. ft, and interest rates are 14.99% and the points are 4.

The problem that we are having is that we do not have the full reserves of 20% for a 100k loan. We are very close, but not all the way there. If I have a family lender who does not want to be a lender, I was hoping that we could at least get the rest to have the 20% reserves in the bank.

Besides that, we have searched everywhere for good hard money lenders in the Philadelphia area and New Jersey area and even at the south jersey reia and the DIG members are telling us simply to stay away from hard money all together and go with private money, because the hard money lenders can really get a one over on you.

Besides that, with whatever property we rehab, all of our money will be tied up in one deal, which we are not too happy about.

Jon Holdman Thanks Jon. Very sound advice.

Steve L. Hi Steve. No they don't know the presentation is coming. I figured it would be a good idea to give them a head's up, but I figured within that minute of me stating,"Would you ever consider private lending to my money?" that they will make up their mind in that instant, and any presentation I give them won't really matter.

Do you have nay suggestions of ways I can give them a head's up, if you even think I should, without shooting myself in the foot?

Ann Bellamy Thanks Ann for responding! Yes, I am a little bit hazy on exactly what the first position mortgage and clean title is. I figured clean title means there are no liens on the property. However, from a real estate event I attended, they said that when purchasing the rehab, to ask the seller to deliver free and clear title. But, I will definitely look into more of what their first position on the mortgage means to them. Currently, I have not picked a title company, but planned on choosing one from referrals I have gotten from the DIG.