All Forum Posts by: Coire Fox

As Steve pointed out, the only thing wholesalers do is bring buyers and sellers together. In essence, they do the exact same thing licensed agents do, but without any oversight from a board of Realtors. What is your friend trying to accomplish by wholesaling?

Also, NAR considers all net listings to be unethical. They are illegal in some states.

RECP is very flexible. Complete the course online and take the test. You have one year from the date of purchase of the class to complete it. You should look for someone to hold your license while you are taking the class. That will be your biggest challenge as an investor. 

Do you have enough business? If not, leverage this new avenue as an added value to bring in more business. If you have plenty of business (or *blasphemy* too much) maybe just charge more for your consulting? I don't know how you market yourself or what your competition is like, but if you are not adding more value than your competitors, people will let you know.

I think it would really depend on getting a good management company and ensuring that you get high quality tenants.

Have you researched management companies?

What kind of market stats are you relying on when you say home values are appreciating quickly? i.e. have you done the research yourself or are you relying on the research of others? I would hate to rent it out and find out 3 years down the line that you are in the same place you are in now, only having had to do the rental work the whole time. Granted, if you have a great management company, maybe it won't be so bad.

1. Every property is different. Every transaction is different. Sure a FEW homes sell themselves and buyers would rush to them no matter what condition they are in and who lists them and (as long as the listing agents are providing an equal level of basic service). But most properties that sell are well marketed through staging, good pictures/info for the buyer, and pro-active agent activity. How long do you think a typical listing agent spends on one property? If properties sell themselves, why do people continue to use agents? There are multiple options for flat-fee MLS listings. Also, GOOD agents aren't just there to sell the house. They are there to support you through the entire process.

2. I have to pay my broker 40% of any commission I get up to a yearly cap no matter if I sell a house worth $20,000 or $2,000,000. The commissions I split with the agent that brings the buyer are not set in stone. The seller and I are in control of what we offer the buyers agent, but it is usually a 50-50 split between the listing agent and the buyers agent.

3. When you get a surgery done, do you ask the surgeon what his hourly rate is? Agents are not paid by the hour. They are paid for their knowledge and service. Did the transaction go smoothly because you had a good agent, or did it go smoothly because of luck? There is no way to know sometimes... Also, there is no guarantee that any sale will be a lay-up sale. I guess the seller could consider it insurance against a complicated transaction. We are liable for mistakes in paperwork. An agent in my office bought his sellers a new refrigerator to the tune of $4000 after the buyer's agent matched the purchase agreement's font type and size in the "personal property" section and he missed it. He owned up to it and made it right. 

@Ashly B.They are ~1 year old Samsung stainless steel appliances. I am not currently getting any credits at closing. I think you are correct that FHA limits seller contributions to actual costs up to 6%. We will be well under that for $2500.

@Wayne BrooksHA! We were typing that at the same time. Essentially the same solution, but if she credits me at closing I don't have to be out that cash and won't affect the underwriting (I think?), vs reducing the purchase price which would only affect my loan amount and would have a bigger impact on underwriting.

Thanks for all the candor, @Kyle Gregg @Michael Olesky! You definitely have pushed me away from making the loan to her. I felt like it was a questionable idea at best. Hopefully it works out!

@Kyle GreggYou are right. It isn't my job. I think that if I go back to them with that, this deal won't get closed. The seller isn't rational. Why would I want to loan money to someone who isn't rational??!?!

I think I will just tell the seller that my lawyer said I can get in big trouble for lending her money. I will ask her to sign the extension, give me a $2500 credit toward closing costs, and let her keep her appliances. That way I'm not giving her money out of pocket, but she can still get her cash by Friday (hopefully), and I'm not out more cash to buy appliances.

@Michael OleskyThe appliances are being conveyed with the property. Sorry if I was unclear about that. The deal not closing would certainly make it much harder for me to get my money back. I considered making her sign a promissory note to "guarantee" the funds on a repayment schedule if the loan should happen not to close. I realize that even if I had a note and she defaulted, and even if I got a judgement, I would still have to collect and it would be a pain in the ***. The renovation department will have everything they need in about 2 hrs and my loan officer says they will clear the loan to close by the 12th. I feel confident that the loan will close by the 12th.

This lady seems like shes always in it, Friday and two months from now not withstanding. I know more about her than I probably should. She has a tendency to tell me more about her life than she really needs to. Maybe she is trying to garner sympathy, but I don't know that her intentions are malicious. I'm very unconvinced of her ability to repay me if the loan doesn't close.

@Kyle GreggYou are absolutely correct on all accounts. She understands that the delays are not my fault and are just part of the process. She needs $2500 by Friday to pay for her son's college tuition that is due. She thinks if she denies the extension she will be able to sell her appliances to get the money together. She claims to have no other resources to get the money.

She is not thinking past Friday. She seems to be in a very emotional state about her son's college tuition. She doesn't want to bring him home from school.