All Forum Posts by: Hoi L.

 @Michael Dumler Sorry that I was not more clear/detailed.  I am all about having the listing agent getting his 3%, just that I cannot communicate with this clown.  He sent us (me and my agent) an email yesterday at 2P that he will get the leases scanned and emailed to us ASAP and ensured us of that with better faster communications.  Now, it is 8AM the next day and there is no leases to be seen.  Again, I am not about asking the seller to cut him off his 3%, but he is certainly killing the deal with such poor responses.  In a way, since the agent is also a flipper, a part of me is thinking that he is trying so hard to kill the house for the seller that he would buy it himself.

Background:

Multi-family large single home in B-/C+ neighborhood with decent school district that has 5 under-rented units (~10-15% under market). Listed for sale outside Philadelphia suburbs for $325k (with rent roll ~$3,800) in 1st week of October 2021. Open house on the last Sunday of October with more than 25-30 people and the listing agent was more than 45 min late (only an hour open house). House went into "Under Contract" in early November after patriarch's daughter (executor) decided on the offer to accept.

Fast forward mid-January 2022 and the house is still "Under Contract" and I called the listing agent and he stated that his buyer and lender went "MIA" and the daughter/executor is not happy. I told him I am ready to send in an offer if they are accepting anymore backup offers and he answered, "Yes, please send them in". I ended our conversion by getting his ok to have my buyer agent contact him to send him the contract, etc.

Anyway, my agent failed to reach the lister via text/voicemail/emails over at least 10 days and more and I also cannot get him to return my call/text/email. I obtained a pre-approval letter from my lender and texted to the lister after another week of ghosting. He then called my buyer agent and told my agent that the last "buyer" was also his client (he was representing both sides) and couldn't get a loan due to lack of "official" income (turns out the former buyer owns pizzeria and had NO INCOME for 2020/2021, which the lister knew from the beginning). My agent and I send in a new offer and again didn't hear any form of reply or acknowledgement from the listing agent for another week or so.

Now fast forward to last week, we scheduled an inspection (a whopping $1250!, I know it's a multi) which the listing agent showed up 45 min LATE AGAIN! He failed to ensure ALL the tenants were aware of the inspection (he posted a printout on their doors and made an excuse that he doesn't have all their numbers-which was a lie) that morning. When we were inspecting the place, there was evidence that the tenants received a similar notice in January and he never showed up.

He promised us in late January that he would get us the leases, which my agent and I reiterated again multiple times last week during the inspection "Yeah, I have them on my desk in the office". No leases, no updates, no utility bills, etc.

Since the mortgage/loan rates are rapidly raising (cannot lock in rates until appraisal is back), I am trying to get my lender to schedule an appraiser ASAP, but I was not going to pay/schedule for an appraisal if the leases/bills don't make sense. So, while I have absolutely no confidence in that listing agent getting his act together, I reached out to the daughter myself. She verified and confirmed everything I had experienced over the phone call we had and she told me she will immediately get me what I needed for the sale to go through without her agent. She told me that the listing agent has all the tenants contact info and he also ignores her communications, etc for months. She send me the bills/rent rolls in 2 days as promised and I thanked her. In my reply, I also told her I prefer to deal with her directly (we both know she is under contract til end of March (our closing is March 28)) and I CC'd the listing agent regarding my preference.

Needless to say, he must be offended. He send out a formal email to me and my agent telling us that SHE prefers future communications to go through him. During our conversation last week, the executor/daughter mentioned that she wanted to get rid of her listing agent so badly that she went looking for the contract to see the expiration date/details/etc but couldn't find it.

Now, should I communicate to the seller directly privately that I want to do the deal through her and no longer has confidence in closing the sale through this agent of hers? I feel his lack of professional will jeopardize the deal and waste the money I had already spent (more than $2k).

thanks for all and any advice!

Background:

Multi-family large single home in B-/C+ neighborhood with decent school district that has 5 under-rented units (~10-15% under market).  Listed for sale outside Philadelphia suburbs for $325k (with rent roll ~$3,800) in 1st week of October 2021.  Open house on the last Sunday of October with more than 25-30 people and the listing agent was more than 45 min late (only an hour open house).  House went into "Under Contract" in early November after patriarch's daughter (executor) decided on the offer to accept.

Fast forward mid-January 2022 and the house is still "Under Contract" and I called the listing agent and he stated that his buyer and lender went "MIA" and the daughter/executor is not happy.  I told him I am ready to send in an offer if they are accepting anymore backup offers and he answered, "Yes, please send them in".  I ended our conversion by getting his ok to have my buyer agent contact him to send him the contract, etc.

Anyway, my agent failed to reach the lister via text/voicemail/emails over at least 10 days and more and I also cannot get him to return my call/text/email.  I obtained a pre-approval letter from my lender and texted to the lister after another week of ghosting.  He then called my buyer agent and told my agent that the last "buyer" was also his client (he was representing both sides) and couldn't get a loan due to lack of "official" income (turns out the former buyer owns pizzeria and had NO INCOME for 2020/2021, which the lister knew from the beginning).  My agent and I send in a new offer and again didn't hear any form of reply or acknowledgement from the listing agent for another week or so. 

Now fast forward to last week, we scheduled an inspection (a whopping $1250!, I know it's a multi) which the listing agent showed up 45 min LATE AGAIN!  He failed to ensure ALL the tenants were aware of the inspection (he posted a printout on their doors and made an excuse that he doesn't have all their numbers-which was a lie) that morning.  When we were inspecting the place, there was evidence that the tenants received a similar notice in January and he never showed up.

He promised us in late January that he would get us the leases, which my agent and I reiterated again multiple times last week during the inspection "Yeah, I have them on my desk in the office".  No leases, no updates, no utility bills, etc.  

Since the mortgage/loan rates are rapidly raising (cannot lock in rates until appraisal is back), I am trying to get my lender to schedule an appraiser ASAP, but I was not going to pay/schedule for an appraisal if the leases/bills don't make sense.  So, while I have absolutely no confidence in that listing agent getting his act together, I reached out to the daughter myself.  She verified and confirmed everything I had experienced over the phone call we had and she told me she will immediately get me what I needed for the sale to go through without her agent.  She told me that the listing agent has all the tenants contact info and he also ignores her communications, etc for months.  She send me the bills/rent rolls in 2 days as promised and I thanked her.  In my reply, I also told her I prefer to deal with her directly (we both know she is under contract til end of March (our closing is March 28)) and I CC'd the listing agent regarding my preference.

Needless to say, he must be offended.  He send out a formal email to me and my agent telling us that SHE prefers future communications to go through him.  During our conversation last week, the executor/daughter mentioned that she wanted to get rid of her listing agent so badly that she went looking for the contract to see the expiration date/details/etc but couldn't find it.

Now, should I communicate to the seller directly privately that I want to do the deal through her and no longer has confidence in closing the sale through this agent of hers?  I feel his lack of professional will jeopardize the deal and waste the money I had already spent (more than $2k).

thanks for all and any advice!

@Amir Guerami   Agree.  As long as my agreed to purchase properties still have (+) cash flows at 5.75% (bought down to 5.5% with 1.25 pt), it is still good to lock in more properties because prices are not going to come down on properties due to the lack of inventory.  Anything less than 6% is low historically and we will be wishing for that number in another year or so.  I remember we bought our first primary home with "LOW" rates when it was financed at 6.25% for 15 years in 2007, followed by refinancing to "superlow" 4.5% in ~2012.  

@Forrest Hayashi

My DSCR loan refinance 2 months ago was 4.5% fixed at 30 yr and the rates jumped to 5.75% just 2 weeks ago for my 2 other property in the middle of getting loans approved. Unfortunately, my lender can't lock down the rates until appraisals were back so I just missed the original 4.5% rate.

@Andrew Freed  I would love to know more about other loan options.  Please PM me if you can.  Thanks!

DSCR loans are great, especially for my just startup LLC. However, they still look into your DTL ration because inevitably, you are the person behind the loans, not just the rent roll, potential, etc. However, it is a start.

I bought my first property with all cash and just did a Debt-Service-Coverage-Ratio loan from a national lender.

Cashed out refinance at 4.5% for 30 years at 75% loan to value ratio with ~8% in closing costs all in.

Example property: 

$200,000 value

Obtained $155k in cash back to be paid at $787/mon for 30 years.

Will use the cash to buy the next property or to use for downpayment for the next few properties.

This lender will also lend out to LLC in similar terms.

Of course, since my LLC/rental are so new (just started 12/21), we had to personally guarantee the loan while keeping the rental under LLC protection against litigation.

Philadelphia or Suburbs?  I am using an attorney for my mediation efforts to get my earnest deposit back.  Very experienced, probably 40 years in the business.  Not sure if he works in Philadelphia though.

@Brian Kantor

Any updates to your cash-out refinancing of your LLC property? I am about to close on a residential property that I am still debating to out it under my name now and risk DoS following transfer to an LLC or just put the property under my LLC now and deal with the cash-out refinance part. Trying to pick the lesser of the 2 devils!

thanks

PA, outside of Pennsylvania