All Forum Posts by: Devin Haertling

Austin Fruechting Sorry just reread your post. Are you suggesting that if he still wants to cut out his realtor he can but we should still go through ours?? Another question. He mentioned asking his realtor if they would take less commission if it meant moving the deal forward. My realtor is not going to take less. Can that happen? One realtor agree to less commission and the other not??

Austin Fruechting I'm a little confused by your last paragraph about paying the 3%. In my post I'm suggesting that we pay all the commissions. We are using our agent and he is using his. The contract he signed was for 5% commission so we are offering to pay both commission. 160k x 5%= 8000 Are there some other commission numbers missing. 8000 would be the most we would pay toward realtor commissions correct??

Jason Kudo Did you not see my last post? We are going about this the right way now and the realtors will be fairly compensated at the contracted 5%. Your post makes it seem like this was our idea to cut the realtors out when he was the one that approached us with it. So let me ask you this. Just because I took 24 hours to asses the situation and gather as much info as possible that makes me a shady person?? If someone read through this link and read how we ended up handling the situation in the end I would think they would assume we are people of integrity (we contacted our agent and got him to contact his agent to let them know what was going on) Now as far as moving forward with the deal and him being shady- it was a shady move but when I talked to him again he was immediately all for keeping the realtors involved. I think he though he was doing us a favor (because we will have to pay all commissions if we move forward with the deal-reread my last post) We are getting a building inspection and I plan on talking to each of the tenants individually to confirm what they pay on rent and the terms of their contract.

Ok BP.  This is why I love this sight.  So much useful info in the last 24 hours.  Thank you all for your input.

This is how we moved forward.  

First I contacted my agent and let her know exactly what had transpired over the last 24 hours.  She was very appreciative and almost sounded surprised I clued her in to what was going on.

Then I contacted the seller and told him the deal could not move forward without the realtors involved.  He was very understanding and said that was not a problem but he would not be paying the commissions. That cost will have to be bore by us if we move forward.  

The selling price would be 160K.  His current contract is a 5% commission and he is stuck on the fact he absolutely wants to  walk out of closing with 160K in pocket.  He will not concede anything else because he came down 40K on the list price.  I have a feeling based on the condition and the fact the last tax bill fair market value was 176K that it will appraise close to 180K (hoping for something really nice in the 200's but that is probably dreaming)  If it does come in at over 200K then my bank will let me purchase with no money down.  (If thats the case then its a definite no brainer)

This means we pay his closing costs, both commisions, and we pick up the tab for all of 2017 taxes.  He is still paying 2016 taxes.  

So there it is.  We have to decide if the above terms are a good enough deal to move forward.  

I'm thinking we will still proceed with the deal.   Running the numbers it seems like a good deal.  I know some others have mentioned deferred maintenance but the whole building was completely renovated 7 years ago from the HVAC down to the plumbing and wiring.  The roof is 6 years old so shouldn't be too much maintenance or cap ex but I know there is always the unknown.  

Again thank you all for your input and I feel at peace moving forward with the deal if we so choose.   

Ross Ayesh and Robert Afra The property is top notch as far a finishes. Granite countertops and stainless steel appliances. From the looks of things in the basement it has all new electric and plumbing total rehab 7 years ago. New HVAC within last 7 years and new roof in 2010. The building itself is very old. I would guess 1920s but he has exposed brink in the downstairs units and 15 foot ceilings. A very industrial/loft feel. It has to pass city occupancy inspections with new renters and he has passed inspection each time. The knocks on this place: Close to a rough neighborhood-on the edge of the nice area creeping into the sketchy area (A class property in a B area) Units are 2- 1 bed/1 bath 2-2 bed/ 1 bath His total rents are 3000 per month which is on the high side of the market. I know these rents are accurate. When we looked at the place I talked to the tenant and confirmed what they pay. Property managers in the area said I would have a hard time replicating the rents in the future. I think this is why he is having trouble selling at 200k but at 160k its a good deal at 10% cap rate after we did our calculations.

I agree with all of your above posts and it is a real concern that if he is willing to do this then he is willing to screw us over as well. What about going about it this way. I tell him to continue listing with his agent until the contract is up. If he hasn't sold then he could get back with me about selling it to us "for sale by owner"? If this happened could I still get my realtor a "gift" in the form of a gift card and her not risk her license by accepting it?

Let me throw this into the equation. She works though a large realty company and she is pretty young (meaning I don't think she is a partner) so of her commission part would go to the company and she would pay taxes on the rest. So if we asked her what her take home pay would have been on the deal and we give her that does it make the situation better on our end.

Deke Belden Hey deke. I didn't know you were on here. That's why we want to give her something so we don't burn bridges for the future. Side note how are we not colleagues yet??

Jason Huber We found the property first and then contacted 4-5 agents through Zillow and she was the first to respond.

Jesse Stephenson Nothing was signed with our agent about representation.