All Forum Posts by: James Ritter

Hello,

Looking to get into Section 8 landlording in Cleveland. Hopeing to find an investor friendly agent to help me make my first few purchases.

https://www.loopnet.com/Listin...

I recently started looking at larger investments in retail and commercial spaces. This property has all long term leases with an NOI of $495,665 after including a new tenant with a 10 year lease.

A commercial loan with 25% down at a purchase price of $5,250,000 would yield a 19.5% annual ROI. Seems like an amazing deal. What questions would you ask as part of due diligence on this one?

@Joe Bertolino

8-10%? I find it funny you can just throw out generalizations like that knowing absolutely nothing about the hypothetical property we are talking about that is for sale. You prove my point perfectly.

@Wayne Brooks

I dont want a buyers agent helping somebody buy it. Thats the entire point dude

 $45,000 that could either be in the sellers or buyers pocket at market price of the home.

@Waylon Zook

I dont think that is a very apt comparison. They are completely different industries. I dont think that a buyer NEEDS a buyers agent. I think that a buyer would much rather have the $45,000. 

I think that the buyer does not realize how much they are actually paying the buyers agent because of the age old "you aren't paying anything" claim which is simply not true. A divorce attorney isnt going to cost you 45K unless you have a TON of assets.

@Charlie MacPherson

I dont "hate" the buyers agent or even have hate for them. Lets say I build a home for $1,400,000 and sell for $1,800,000

Between the listing agent and selling agent I am paying $90,000 or roughly 25% of the profit after risking my 1.2MM and a TON of work. That is just unacceptable. I have an investor that is also an agent that is willing to list the property for 2% and I don't want to pay a buyers agent. I am trying to figure out how to avoid them.

Are agents required to be members of the NAR or is it optional?

I understand that you, and a few others on here feel that I will be handicapping myself and limiting the buyer pool and I am saying I do not agree with that generalization. Almost everybody uses Zillow when home shopping and just tells their buyers agent what they are interested in looking at. I dont believe that an Agent has the  clout to stop somebody from looking at a home in the 2MM range just because they wont make their dollars. The buyers agent's main job seems to be asserting their value in a business that has changed drastically over the past 10 years so that they can avoid becoming obsolete. 

@Charlie MacPherson

so what if I listed on Zillow and not the MLS as the listing agent? Would I not be required to offer a buyers agent compensation?

It’s not very useful to hear about how important a buyers agent is from somebody who was a buyers agent. I believe the industry is moving towards not having a buyers agent for home purchases anymore which is why I’m asking the question.

A buyers agent not wanting to show a home that a purchaser wants to see is exactly what I want so the purchaser calls me directly. Any time I have EVER looked at homes for sale and then contacted an agent all they did was send me listings for things I already saw online. As I said, it’s not 1950 anymore.

@Charlie MacPherson I simply do not want to work with a buyers agent. I don't believe there are MLS rules that state you have to pay a buyers agent commission.

I find it funny that people making a huge decision, like buying a house, will be stopped because an agent didn't recommend a specific house to them. This isn't 1950.

I am sure this post is going to get a lot of pissed off real estate agents responding.... BUT I want to know what type of agreement you would use that would restrict a buyers agent from earning a commission.

Exclusive listing? Dual Agency? 

I simply do not want to work with a buyers agent (as a seller). I mean the buyer can work with an agent all they want but without them earning a commission.