All Forum Posts by: Joel Owens

It works both ways.

When you look at solds in a neighborhood most are MLS listed and sold.

The FSBO's believe they can attain that price but do not understand that price includes paying a commission.When you take that away the sold price for that property will be lower.

So if a property is listed MLS at 140k and a FSBO lists at 140k the buyer will simply reduce down 6% right off the top as the seller is not incurring that cost before making that offer.

If you have a buyer with crap credit or a lease option then you might be able to achieve a higher price.

If you ask almost all new home builders most of their sales are not in house but with outside agents.

Investors will view buyers brokers many times differently than the home buying public.Many home buyers only purchase every 3 to 5 years and have limited experience with contracts,new laws,etc.

If you are an investor that purchases all the time and wants to go on their own that is fine.

I have found it just depends on the person what their comfort level is.

For some a vision of owning a property outright is the ultimate goal.They feel security in that the house is paid for.

My mother-in-law is 67 and her house,cars,everything is paid for and money in the bank.She doesn't live high on the hog but loves the security and "NOT WORRYING" about money.

On the flip side I see the money as rotting every year not doing anything.If anything the value is getting less as inflation goes up.

It's the same as saying if you save xx dollars in 30 years you will have 500k.That may be true but in that 30 years from now the 500k won't have anywhere close to the value it has today.

Now other investor clients of mine view it a different way in that rates are so cheap right now they jokingly refer to it as "ALMOST FREE MONEY".

Long term rates in the 4's to 5's and short term 3 to 5 years in the 3's.If you look back historically rates for borrowing money have never been lower over the years.

As far as using an agent if it is listed they are free to use.

Whether or not you will be a better negotiator has to do more with your skill level.

On the survey and all other inspections that is on you the buyer.You are obligated "with your right of your own inquiry" to perform all tests you deem necessary to feel comfortable moving forward and closing a transaction.

On all my listings it says "information deemed reliable but NOT guaranteed".

The reason is in reality the seller is not sure and is just passing information onto me to relay to potential buyers.

Always do your own investigation of a property. Remember "caveat emptor" buyer beware.

There are advantages and disadvantages to being licensed. I think the advantages outweigh the disadvantages.

You have to ask Lily WHY you got your license in the first place??

Kellie,

Why are you mentioning that the listing broker/agent shows it??

If you are a licensed buyers agent then YOU should be showing the property and earning your side of the commission.Especially if it's a short sale you should find out before showing where the property is at in the short sale process.

If it's a listing broker/agent who hasn't completed the necessary paperwork or explained the process to the owners the ship is already way off course.

In my MLS broker put in their if the listing broker shows the buyers broker gets 1 PERCENT.

This eliminates many lazy buyer agents trying to pawn off showing on the listing broker.If the listing broker has to show the property and sell the buyer on the property then the buyers broker shouldn't get all of their side.

If you are an agent you are treading a very slippery slope.You would need to get your broker approval before trying these kinds of activities.

The reason is the broker might not want that liability and it might not be covered by their E and O insurance policy.

Also even though you don't have a relationship with the buyer or the seller your actions can create an "implied agency" with one or both parties.This is dangerous as it puts you into an agency relationship where the buyer or the seller could claim damages later for misrepresentation.

You need to talk to your broker about this and then if you are allowed to move forward the proper legal disclosures would have to be made to everyone involved.

When you are licensed you are held to a higher standard than a typical investor is.

good luck-no legal advice

Anything you do to reduce the potential buyer pool upon resale makes getting top dollar more difficult.

Price solves everything.Someone will buy and someone will rent "FOR A CERTAIN PRICE".

Given the comps you have shown I would buy even lower than your offer so you have room to reduce rents down if it becomes a common them they don't like the small backyard and closeness to the street.

Does the property have sound reducing windows?? What is the daily traffic count of the road??

I know with some renters external noise is a huge issue.

Something that has been sitting that long you need an inspection.

Use an ASHI or CABO certified home inspector.Ask how many home inspections they have completed and what they were doing before being a home inspector.

They should have a lot of training as a contractor or similar in the field etc.

What you don't want is Uncle Bubba or a new home inspector looking over the property.If the home inspector recommends further inspections by specialists and you don't want to shell out the money that will be on you later after you have bought the property.

Get your price accepted and then pay for an inspection.Any issues ask for a repair or a reduction in price.Your lender might require certain items to be fixed before they will fund the loan.

no legal advice

Yes if your other notes are at those interest rates you stated then keeping the cash to make new investments makes sense.

Make a low offer to all 3 and see if one of them bites.Start out at 30 like I said.At the end of the day they want to feel they got more than you were willing to pay them.They want to mentally win the war and feel superior in negotiations.

Let them feel this way and revel in their accomplishments.You will know all the time you accomplished your goals.

It really depends on who the seller is.Was the seller who owner financed a corporation or a one time property owner or a seasoned investor??

If say they invest in a certain asset class say multifamily the deals that are abound today might not be here in a few years and the interest rate might be higher.So in that case they will have a motivation today to cash in.

There are hundreds of reasons they might or might not sell.Some want existing security above potential reinvestment returns.

If they do want to sell the note I don't see them selling to someone else unless as I said there is a ton of equity and the interest rate on the note is great (for the note buyer).

So you are only trying to buy off the seconds on properties you bought a few years ago and obtained owner finance on???

3 years is a long time and motivations can stay the same or change.If they don't need the money now they might not want to sell at 50 cents on the dollar.

In my sellers listings most note buyers haven't touched a second in a few years.The reason is most markets have been declining in value.If they have to foreclose they would lose money on the deal.

So some seconds will be bought but only if the appraisal shows a ton of equity left over after the first and second position.

With you you own the property so in paying off the second you are just reducing your debt down.

If you want to pay 50 cents on the dollar offer 30 cents and work your way up to 50.The owner holding the second may be happy that you have been paying all this time and wants to keep things status quo or they might have other investments they want to pursue.

For example the note is for 300k.You payoff at 150k and they use that to buy a distressed apartment building etc. where over time they turn the 150k into 600k.

Just make the offer and feel them out.