All Forum Posts by: Inna Mitelman

agree.  New York is not a place for new investors,  only flippers. I tried for to get into the market last year.  None of the properties make cense by numbers. Brokers were giving us very high rates for commercial mortgage, agents were crooks. I had a cense that everyone is trying to take advantage, and eventually gave up.  Out of state difficult first but more approachable. 

yes,  I get this point.  Just don't want to close eyes for certain risk associated with transactions.  You have to see it to spot right opportunities. 

with you last post sound like you don't have pay loan any more just pocket 45k, but you do have outstanding 120 k in debt. Instead of 75 loan and your rehab cash. You do have 120 k to pay off !!!

I think this technique has its dangers and risks that we have to count on.  Appraisal value defined by bank and we know banks WANT to lend you. It is only equity if somebody purchased the property and willing to pay you that equity.  Second you are have to have really good cash flow to cover all loans. 

Danger - if history repeats and you are 100% leveraged there is risk that might loose all properties  plus your initial investment plus time spent.  I think after second or third Brrr strategy better to start repaying loans and get to comfortable balance of 50/50 equity/mortgage,  then start Brrr again.  

Yes,  thanks for response. Understand. Planning to implement this strategy. What worries me that next property is 100% on loan, as we going to use cash out money for down payment.  

may be a stupid question. I am missing something refinance strategy.

ARV = $160 and Refinance = $120 (75% of $160)

$120 refinance - $75 original loan = $45 cash out at refinance

Where is CASH OUT? You have to pay 120k of loan for next XX years. You can use it for next property, as down payment but is a LOAN, you are responsible and bigger then original. Better be sure next property or cash flow from current can cover it.

He gave me the typical MLS sheets that have the MLS number, a picture on the Left Upper corner, and all the details on Taxes, Sq Ft, Flood Zone, Zoning, Heat type, sewer, water, parking, etc, etc and it even has the paper clip link with Deed, Seller Disclosure, maps, additional pictures BUT there is no indication or note of co-broke fee in it. But the Agent claims there is a"different" MLS sheet that he can't share with me (or he will get fined) hat says there is a co-broke fee of 2-2.5 % of the sale price. Is there really a different MLS sheet out there? Thanks for the help!

Robert, 

thank you for the insight. Very Helpful! Is the co-broke fee usually paid by the Buyer in New Hampshire? As I said, my experience in NY is that all commissions are paid by the seller. I never asked up front what fees I could end up paying. Wondering if it is different in each state. 

Hi, 

I am working with a real estate agent in New Hampshire. He says the properties I want him to show me have a co-broke fee. He explains it is the portion I (buyer) must pay at closing to him (Buyer RE agent) and it is stipulated up front in the Agent MLS sheet that only the RE agents can see, this is, he is NOT allowed to show it to me which doesn't make sense to me as things must be transparent. This co-broke commission is in the range from 2.00% to 2.5%. I live in NY where all commissions are paid by the seller so I am not familiar with this in NH. Also, he sent me a form called BUYER FACILITATOR RELATIONSHIP IN REAL ESTATE where he placed an additional condition where I agree to pay 3% of the purchase price for his services where "If seller's agent is authorized to disburse a portion of commission to firm, that portion shall be credited against buyers obligation to compensate firm." so if the co broke fee is 2% I end up paying an additional 1% to make the 3% total. Can somebody comment on the above? I want to pass it to my attorney tomorrow but any feedback is very appreciated. Thanks!