All Forum Posts by: Brian Stutzman

Quote from @Brady Bell:

Hey man, I'm in Rigby and have done all of this either myself or helped others facilitate it. 

title/escrow company can escrow the seller carry. They can also handle the taxes and insurance as well

The amount you require down is really up to you. I've done 100% owner carry and 50% owner carry. The more down they have the less risk you carry. I think 6% is pretty strong on an owner carry tho. You'd make more in the s&p with less risk.  If I were you and offering that rate I'd strongly consider adding a balloon clause to get your payback sooner.

If you wanna chat on the phone about this just search me up on google "Bellhaven real estate"

good luck!

 Thanks for this advice. I might call you.

Quote from @Ryan Spath:

Practical suggestion:

• 25% down is generally strong enough, but don’t go lower.

• Get a solid attorney to draft the note, deed of trust, and balloon structure.

• Consider selling one or two at a time instead of packaging all three — unless the right buyer comes along who’s strong financially.

• You could even keep one property as a “backup” cash-flowing rental, and sell the others.

Ryan thanks for this !

I have a 5,4 , 3 car in a very nice nieghborhood.  Hoping to get 400K net.  I own it outright.  Was approached today to owner carry for a local investor who wants to continue to rent it out.  Is 25% down enough.. 100K, carry 300k ?  I have 2 more nice properties.. maybe sell all of them for $1.3 million with $300 K down?  Is that enough.. should I try to sell to different people so that i am diversified?  Thoughts?  

I have a few properties.  Right now I have a 5 bed, 4 bath, 3 car on a cul de sac in a nice neighborhood and my tenant is moving out of state.  I have owned the home since it was almost new and it is now paid off.  I am thinking of listing it for sale but was approached today by a local investor who was really pushing me to carry part of it or all of it.  The home is worth about $430K and in todays market I was hoping to clear $400k   I was looking to put it all, after taxes, in a mutual fund.  But if I carry the note, would 25% down be enough to protect me?  Carry 300K for 30 yrs at 6%?  It would certainly cash flow if he could come up with $100K down.  What else besides being cashed out would you consider?  Who has carried?  how do you do escrow for insurance and taxes?  What do you look for in a new buyer you might carry?  I have two more properties similiar value or slightly higher I will want to offload (I am getting older :)) and the total value is about $1.3 mill.  He may want all three.  is $300K down enough on $1.3 million total?  Thoughts?  (Area rents have gone up, I am under by at least $200 per month on each house).  Thanks!

Quote from @Jacob Beg:

It might be worth getting advice from an attorney. Check with the local bar, most offer a reduced fee half hour consultation. 

So I doubt that the board can force the broker to purchase the property, there might be disciplinary issue for the agent/broker especially if he claims he hadn’t seen the contract. 

I would be angling to see whether this is claimable againsg the E&O policy, depending on how you design the issue. Or perhaps professional negligence, if the broker stands to lose his license-depending on the size, and having heard from an attorney, you might get a sizeable compensation because even courts, that is, if you trouble yourself with the litigation costs and get a favourable ruling, are likely to award a monetary sum. Of course, I am not an attorney but there are so many if's and but's and the legal verbiage is critical.

May be the broker is right, or May be not, that you are misconstruing the contract. Another argument is that had it not been for this misrepresentation (again verbiage is critical), you wouldn’t have entered into a listing agreement. I think this might be your far better argument. Again, if the sum is large enough and you age upset enough then get proper informed legal advice. 

 Thank you for this.  Frankly we have gotten some good advice locally which I can not post here but we had some thinking right and some wrong.  Best advice as you said: talk to someone who knows the law because it can be different than just a contract dispute in some states.

Quote from @Scott Autenreith:

Quote from @Brian Stutzman:

Quote from @Scott Autenreith:

What is the end goal for you? For them to buy it? Or to release the listing? 

 have them buy it!  The market went south, and the price they agreed on is good now.  The listing just expired anyway.

 Did you ever have an executed purchase contract? If no, it seems like an uphill battle

That is the point.  The wrote in the listing agreement that if after 90 days and some price drops the seller could have the broker buy it for a set price.  The seller wants them to buy it now as they said they would.  The agent said he would get the ball rolling and we have waited for a purchase agreement to be drawn up now that it is realevant and the broker, just thursday said that is first he has heard of anything the agent said, and had not even seen the listing agreement before.  My family member only listed with this guy because he promised they would buy the property if it did not sell and wrote some langauge to that affect on the listing agreement.  Thoughts now?

Quote from @Scott Autenreith:

What is the end goal for you? For them to buy it? Or to release the listing? 

 have them buy it!  The market went south, and the price they agreed on is good now.  The listing just expired anyway.

I posted this in legal but wanted a broader viewpoint.  

I have a family member who listed a property and the agent put in additional wording on the listing contract (it has an additional paragraph in our state for additional terms). As the listing was coming up to expire we said lets have you buy it and the agent said he was starting that then went radio silence. So we set up a meeting with the agent and broker and they completely backtracked and said they do not do this type of thing, picked apart the wording, and the broker said that we are interpreting things differently than they do, and they had no interest in buying it, while the agent was looking at the floor and did not say anything. We are considering arbitration, and the local real estate board offers that for a small set fee, but are we going to get a fair shake there because these guys might be friends with the broker? It is a $192K deal. Thoughts?

I have a family member who listed a property and the agent put in additional wording on the listing contract (it has an additional paragraph in our state for additional terms).   As the listing was coming up to expire we said lets have you buy it and the agent said he was starting that then went radio silence.  So we set up a meeting with the agent and broker and they completely backtracked and said they do not do this type of thing, picked apart the wording,  and the broker said that we are interpreting things differently than they do, and they had no interest in buying it, while the agent was looking at the floor and did not say anything.  We are considering arbitration, and the local real estate board offers that for a small set fee, but are we going to get a fair shake there because these guys might be friends with the broker?  It is a $192K deal.  Thoughts?

Quote from @Luis Chavez:

How did this go? Interested to know the outcome.

 We were succesfull with alot of help from the Lord above.  It is now Idaho law.