All Forum Posts by: James Stinnett

Hi @Sean Beksinski

You do not need to get licensed as a real estate agent to invest. And, if you were thinking of investing out of state it may not even be practical to get your license since you don't live in the state and are not familiar with the areas.  So, the benefits you would get from working with a experienced and motivated local agent that has insights to what areas fit your investment goals would be something you would still be missing even if you did get your RE license. 

Now, if you are investing in your own state and in areas that you know then getting your real estate license might be worth it, especially if you are trying to save as much money as possible since you could earn the real estate commission on homes listed on the MLS or with sellers that are paying commissions to agents. In addition you would get access to the MLS to search for deals. Now I know that many people say there are no good deals on the MLS and therefore MLS access is not a big deal, but that's when you focus on the list price, so work the numbers and figure what purchase price would make it a great deal and offer that. You might end up with one that makes sense for you. And like everything there are trade-offs and not working with an agent definitely has downsides. A great agent can protect you from mistakes and pitfalls, just like a good lender, appraiser, home inspector, and title company.

There are other considerations and points of views and I'm sure others will give some of their opinions and insights, Best of Luck!

@Marcia Maynard - Hi Marcia, Thank you for all the information and insights, it is greatly appreciated!

I definitely understand your reluctance of turnover the responsibility for PITI payments to a PM -- but I am still curious from some owners that use a PM or from PM themselves, how common it is.

Hello BP members!

I'm hoping to get some answers to the following PM questions I have, any insights would be greatly appreciated!

1.  Are most PM making mortgage payments for the owner; what percentage of owners have you making this payment?

2.  If the owners do not have an impound account for taxes/insurance are you also making these payments; again what %?

3. If they are having you make PITI payments and the rent does not cover this and fees are the owners sending you checks?

4.  What percentage of all payments made on behalf of the owners are electronic payments and what % snail mail checks?

I would expect that both PM and Owners could answer the questions above each with there own reasoning and insights so that would be helpful.  Again thank you for your time and help.

Hi Jeb,

I am a new BP member and I've been to one Meet up event in Long Beach, last week. How long has the one in Los Alamitos been going on? If I'm in town on the 29th I'll be there and Thank you!

@George Blower

Hi George, and thank you! Happy to be here!

Hi Jo-Ann, thank you!

I'm not sure about the going rate in NJ, but here in California, owners typically list with a listing agent for 5% to 6%. However, real estate commission are not fixed and can be negotiated between Agent and Seller. Now, 20 years ago it was mostly 6%, but recently in the last 10 years or so I would say 5% is more common. However, the listing agent typically offers 1/2 of whatever they took the listing at as compensation to an agent that brings a buyer that purchases the property. Not all listing agents split it 50/50 with the buyers' agent but as the seller you can specify that in the contract, and I would do definitely do that.

I've been an agent since 1993, broker since 2004 and I would not sell my house without offering a commission to agents to bring me a buyer via the MLS, the exposure you get from being listed on the MLS and all the sites it pushes out to means more buyers see your home and the more the better.  You want multiple offers and the chance to pick the best or to counter for more or to do a round of highest and best, whatever is the norm in your area, but in general the more exposure the higher sales price. And that higher sale price could more than make up for the commission or at least off set a good portion of it. And, I know I'm biased here but I feel that realtors do provide a very valuable service beyond just the sales price they get you. Often the hardest negotiations are after the home inspection and having a knowledgeable professional advocating for you and looking out for your interests is worth more than the commission. And they make sure that the seller follow their disclosure requirements or ensure that buyers complete their due diligence and generally facilitate the transaction.

Hi Heath,

When you say he owes $138K is that his payoff amount, including the back payments, late fees, and any pre-foreclosure costs? What is your estimated costs for repairs?

He could attempt to do a loan modification (loan mod) with the lender, though this would cut you out but would be great for him if his goal is to stay in the house. 

A successful short-sale typically benefits the borrower (homeowner) in the following ways: it can give them more time in the house (and payment-free); it is better than a foreclosure from a credit report perspective and wold allow him to obtain a new purchase loan for a new home in the future more quickly as compared to having it go through foreclosure.

I would encourage you both to reach out to a local realtor with short-sale experience and have them facilitate the transaction, it would not cost you or the owner the commission as it would be paid out of the bank's proceeds.

No, in a short-sale I would definitely not offer any payments to him directly that are not known and approved by the bank, you can get yourself in hot water and probably legal trouble by doing that on a short sale. However the bank may have there own short-sale incentive that would provide him some cash at closing that is meant to help with moving expenses and as a rental payment on a new place for him to live.

Hope this helps!

I have used Allied Schools for me and agents, great online interface and easy to read and track progress, no complaints, they have been around 26 years.  They might try to sell you the hard copy books or extra but just ask what is there lowest price for the online courses only. Best of Luck!

https://www.alliedschools.com/re_salesperson_licen... Only for: CA, TX, FL, NV, VA, WA

Hi Jarid,

To be honest, I have definitely been that agent before, glazing over with mention of flipping (mine was definitely an internal glaze, no obvious outward indications - LoL).  I understand the points the agents above made and agree with them, but I'll give you my experience and perspective here in Southern California, because some of the reactions you are getting may be based on the same.  

From 2009 to present I have regularly been approached by flip investors asking me to call them when I come across a good deal. Now on an MLS listed deal I would make the commission offered, on an off-market deal I would want either something comparable to that, either from the Seller or Investor or a combination, or even a promise from the investor to list the rehabbed property with me. So, why the glazed look? Because I had so many investors that were willing to have me send them a good deal, yet all I really needed was a few for each type of property or area, that were solid investors. Today, I have maybe 3 that I work with and they have there ducks in a row - updated POF (not 3 months old), they let me write clean offers, they are all-cash, and they shortened their contingencies and they follow through on the purchase and then re-list with me. So, as agent, when you have a good deal, finding an investor that is willing to compensate you is not hard, finding the good deal is the hard part. So for me at least, in my market it was a matter of saturation - I had plenty of investors that wanted good deal and not as many good deal.  

Now if the agents you are approaching are being told they would get a finders fee but not the commission or listing because your Broker would get that then they might be thinking well then I'll just take it to a broker that will allow me to write the offer, earn the commission and even list it when rehab is complete. Hope this provides some insight, best of luck!