All Forum Posts by: David M.

@Account Closed

Doing a FSBO is a catch-22 issue, and your follow up question just proves it.

When doing a FSBO, YOU are now the agent. The whole transaction is on YOU. So, would you rather figure this out on the fly what appears to be a one-off transaction? Or, just pay the realtor to to do their job?

The general sales pitch / story is that listed properties get a higher price. you can consider a sale pitch.. but just remember one usually has better advertising through the MLS, also better access/availability unless you have time to field all the phone calls and arrange showings.

There are some discount brokerages where you pay flat fee for a listing on the MLS. That's all they provide.

Are you selling in NY?  Its an attorney state so the attorney has to draft the contract.  Be careful about putting anything in writing as that might get you into a contract --- I think.  I understand its all verbal until you get to the attorney or something --- I've only transacted in NJ.

as mentioned, if you have a super smooth transaction, it looks like the agent didn't do anything.  Well, you might have had a super smooth transction because the agent handled the transaction very well..  Also, if you have a poor transaction, a good agent will be able to help youthrough it.

FSBO tend to not fetch the best price since both sides are looking to save money. The seller thinks they can get the "market price" and pockets the 5%-6% while the buyer thinks they can reduce the price by 5%-6%. Negotiations tend to go poorly since neither side is experienced, or I've seen come out "from a poor direction."

The best are the owners that ask agents questions about how to sell their property..  Or during the transaction they run into a problem or issue, and go asking agents what to do.  Of course, the owners don't offer to compensate the agents in anyway...

Not sure what is the "fsbo website" but whatever you learn better be State specific, if not your portion of the state.  For example, in NJ some parts customarily use attorneys and some parts don't.

Oh, and nothing says it has to be 6%.  That's definitely the highest I've ever heard of, but not very often obtained...

Sorry to be a downer.  But, if you don't know how to do advertise, sell, and do the homesale transaction --- you don't know how to do it.  Even realtors learn about the transaction on the job...  Its all sales, then some "transactional stuff" that Title, closing agent, and maybe attorney handles.

Good luck.

@Michael Masters

To answer your question directly, you could do an installment sale where you receive the funds across two tax years...

Just to be sure since many people mess this up:  you figured your profit as your net sales minus your cost basis (basically your purchase price plus your capital improvements), correct?

Also, you will have to pay the depreciation unrecapture the depreciation that's been taking on the multifamily...  There is some more tax liability there for you.

As @Dave Foster pointed out, you could 1031.  Since you mentioned retirement home, you could 1031 part of the funds into your "retirement home," but rent it out for a bit.  Then, move in.  Now that tax liability is deferred in that home.  Of course, there is an issue of where do you live for that period of time to establish that you 1031'ed into another investment property...

I agree with @Michael Plaks, I don't know how you figured that savings...

As for "...harder to sell to potential buyers," the 1031 transaction is mostly transparent to them.  You just need a QI to receive your funds...  Doing an installment sale I THINK could be done just by leaving the funds in a separate escrow account.  I haven't done one of these, so look into the details.

Hope this helps.  Happy to chat.  Good luck.

@Mike K. normally in residential real estate, the listing agent doesn't do the showings.  The buyer's agent does the showing.  In commercial, its usually the other way around.

@Jerry Callow

Well, investing in real estate is speculation.  You have no idea which way the value of the property goes.  Of course, the idea is for it to go up, but between now and and when you do sell, it might go down then up..

Since you say that you purchased for the sake of purchasing, probably best to at least sell that second property.  No idea of the prospects of that first property.  That's your call.

You should consider you overall investing strategy and goals.  You need to use invest in the asset class and the associated method with the opportunity.  You can't just invest in something for the sake of investing.  If some of the methods don't work for you, such as as investing out of state, then you need to continue to learn.

As mentioned, the 5% HYSA is just some sort of default answer.  Granted, this is a real estate investing forum.  But, there are plenty of other assets to invest, and many methods, and still achieve a yield better than 5%.  Keep searching and learning.

Hope this helps some.  Happy to chat.  Good luck.

@Jay Jonez

If you are doing subj-to, you should have the reserves / capability to refi.  Just refi and be done with it.

Personally, to this layman a document titled "Assumption of existing mortgage agreement" doesn't help your case.  You aren't "assuming" the loan... that's why its subj-to.  So, you've got not so good documentation.

I'm still confused as to what is the issue.  The 1098?  She received mortgage interest??  Guess I'm fuzzy on how this subj-to was setup.  She wants to claim interest payments on her taxes?  So, let her claim the interest...  Should be cheaper than you getting a new loan.

She probably wants more because she probably could have gotten more if she just sold the public market.

@Wesley Tripp

"pre-foreclosure" is more of a Zillow-type term.  Basically, its anything that a lis-pendens is filed.  So, it could just be that they fell behind on a couple payments and will become due, or maybe because the servicing of the Note changed so some payments are missing until the servicing catches up..

The sheriff's auction list, the foreclosure list, is the main foreclosure list.  Granted, not everything goes to auction that is on that last.

Uhmm... You can buy any property from the owner... if they are willing to sell.  Most properties are transacted without being on a foreclosure list LOL  :)

Hope that helps.  Good luck.

@Eric Gerakos On my phone, the "view last reply" isn't shown on the thread title...

@Alex Clark

As mentioned, you don't have to be present for closing usually nowadays.  Of course, it'd be good to double check.

You might want to check out this VERY LONG thread about how things can go wrong investing out of state.  You don't always make money investing in real estate, and this is one of the few threads, perhaps only on, that shows that:  https://www.biggerpockets.com/forums/48/topics/1159104-overl...

Good luck.

@Jay Hinrichs seems to work for me...  Maybe its your browser?

@David Fals

Sometimes there is a factor of timing and market forces.  Keep your $100k invested in whatever complementary strategy you should have going.  Perhaps look / study other methods of investing.  You can't be focused on only one method.  You have to invest in the asset class and methodology that makes sense in these markets.

Good luck.