All Forum Posts by: Jeff Allen

Y’all love the numbers as you should lol. Really just asking would you prefer to get into an apartment or 5 single families if everything equaled out. 

Thanks Caroline. She took over management of our properties Nov 2020. She owes me over $11K so it’s more than I can file for in small claims.  I have proof of everything. I will call Matt first, thank you for that info I was having a hard time finding her broker information. 

Hi everyone,

I spent 2.5 years building what we thought was our forever home in the Bay Area. We did things that would not make sense if I were building it as an investment property. Due to some life changes, we are contemplating a move cross country to Florida in order to be closer to family.

If we move, I am not sure if I want to rent the house or sell it. Hoping to get your advice here or perhaps provide some creative ideas. As I get closer to a decision I know I need to meet with some local agents to refine these numbers a bit.

Reasons to Sell: I have a significant amount of equity in the house that would allow me to pay for a new house in cash. Having no mortgage with a young family is very attractive mentally, even if it is not 100% the right financial decision. Rental income likely would not cover the mortgage + taxes in my area. I would then poor my future savings into investment properties. Also, I have an emotional attachment to the house that may add stress when seeing renters not take care of it the way I would.

Selling now would let me take advantage of the $500k in gains on my primary.

Reasons to rent: I have a ridiculously low 2.1% 30 year fixed mortgage with WF. I don't *need* the money to fund the downpayment for my new house.

I don't think my mortgage is assignable, but is there any way to bring on an "investor" into the house to get best of both worlds?

@Jacob Miles

I think most folks already touched on this, but the seller typically negotiates what the buyers agent will get with the listing agent.  For my clients, I don't care if it's 1% or 5%, whatever it says on the listing, is what I'll accept because I am working on behalf of my client and would never jeopardize a deal for them because I felt I wasn't getting paid enough.  That commission has already been pre-determined by the seller of what they are willing to pay me. 

Not sure if you mean you'd want to just take the additional 1% for yourself.  Regardless, if you are concerned about the commission they're getting, you aren't working with the right agent.  A great agent can provide market knowledge, investor knowledge, municipality law knowledge, contractor connections, management company connections, negotiation tactics, and more all for the price of something you're technically not paying for anyways.  I'd recommend reaching out to some other agents, and find one that provides tremendous value.  

Also, if that same agent drops their commission 1% because you asked, would you trust that same person in negotiating 10's of thousands of dollars for you on a price of a home?  I personally would not.

A great agent is worth their weight in gold.  Someone else touched on it, but the folks who are happy to use me and never ask about my commission, are the ones that go straight to the top of my list when it comes to off market or other deals I discover myself that others don't have access to.  What comes around goes around.

Best of luck to you!