All Forum Posts by: Adam Ward

hate to miss this one.  Would love to see what you have going on!

going to try to make it!

Adding @Eric F. too

looks great, Art!

I am under contract to purchase a house @ $77,500. This will be a cash purchase and my current lender is willing to immediately refinance up to 75% of the purchase price. 75% is their max LTV. Their minimum loan amount is $60k. To meet these requirements, i am considering an initial cash purchase of $80k with $2500 in closing concessions. The house is in NC and I will be purchasing in my individual name (no entity). Are closing concessions allowed with a cash purchase? If so, is there a maximum % allowable and does this affect the refinance. My goals: Refinance as much of the original purchase price as possible Fixed rate, no balloon (term of loan is flexible) Lowest rate possible of course Any advice would be appreciated!

@Jalen Carethers...yep.  Live in Raleigh now.  Currently looking for rehab deals in the triangle area.  Let me know if you get anything down this way!

Good work, Jalen!

getting on it early this month @Michael Jobe!

Planning to go. Hope to see you guys out there!

@Candace Berry

Great job with the renovation!  

It's a great location and a unique one.  The allure of being inside the beltline is appealing to many.  The neighborhood seems to have a bit of everything - large luxury homes, college rentals, and residential multifamily.  VERY close to NC State campus.  Corner of Brooks and Everett, which are both popular cross thru streets.  

I noticed that the listing square footage > tax record square footage by about 150%.  Which is accurate?

IMO, pricing will trump any other factor when selling a home. If the MLS sqft is correct, you are priced close to the top of the market for a .5 mile radius (not a bad thing these days!). If the tax sqft is correct, the home may be overpriced...

@Dawn Brenengen is correct about listening to the feedback you've received.  With 160 days on market, you should have plenty to go on.  Many realtors will leave 1-2 sentences after taking their clients to see the home.  It may be worth a phone call to them to see if you can get a better feel for things.

Kudos to you for doing some research before dropping the price on a +$800K house.

Good luck!

I'm not a realtor, but here are my thoughts for Wake County:

Off the shelf seems to be 2.4% to buyer's agent.  I've seen as little as 2% and as much as 3%.

Not sure about an off the shelf answer for the selling agent.  I have seen as little as $250 for a flat fee listing service (typically you get what you pay for) and as much as 3% to the listing agent.  The sweet spot seems to be between 4%-5% for total commission (combined BA + SA).  Yes, negotiation is realistic.  Obviously a higher level of service will warrant a higher commission rate.

I doubt you would lose buyers solely based on a low BA commission (many buyers are using zillow, realtor, trulia, redfin, etc so they know exactly what's on the market).  

A related question might be to see how the price point of the home influences the commission rate. 

It will be interesting to hear from realtors on this topic!

@David Beard

Regarding your comments...

they are structured as profit-sharing mortgages, where I simply hold a mortgage and am not on title. Now let's say I make multiple loans, but I'm still a passive lender in each deal. I just happen to be compensated based on a share of the profits. Is this a different tax characterization than if I were lending at a straight 15%, for example?

Have you had success/pitfalls with profit sharing clauses in your promissory notes? I am interested in structuring a rehab with a partner where the SDIRA/solo401k lends @ points + interest or agreed upon % profit, whichever is greater. It seems like a good way around structuring as a JV or splitting every transaction in proportion to equity share. Just wondering if I could be missing something.