All Forum Posts by: John Lindemann

@zach

Huge help. Many thanks to you and the other commenters. If the buyer has to be represented legally then I'd definitely like to support my realtor vs somebody else. 

I fully agree with comments about fees Realtors have to pay and I would not be one to shaft a realtor...I just needed to knowork why I would pay for the buyers representation. 

I don't necessarily agree with the law but...it's seems to be the law. 

I am selling an investment house in Oklahoma and I have signed with a realtor to list and sell my house.  Last weekend a buyer found our house from a listing my wife had posted on a Facebook page.  The buyer messaged me and then we spoke on the phone and then I showed them the house since I was going to be there anyway.  They are not using a realtor and want to negotiate with me on the price to reflect that I won't be paying a buying side realtor the 3%.  I anticipate receiving an offer this evening from them.

I spoke to my realtor and he said that they had to be represented by a realtor since it is listed with a realtor and is on the MLS. Is this true? He offered to do their side at a reduced commission of 2%.

I genuinely like my realtor and don't want to mess up my relationship with him but don't understand why the buyer has to have a realtor or why I'd pay an extra 2%.

Any insight would be greatly appreciated.  I'm looking for reasons other than "if you like your realtor you should pay him."  This is real money and if I'm going to pay somebody I need to know what I'm paying them for.

Thanks so much for taking the time to read my post and provide your feedback!

@Joel Kadlec - I won't go too far into the numbers but I think there are probably better deals out there.  The rent seems low for Tulsa, are these 2/1 homes?

I bought two SFH's in BA and have about $55k total tied up in both and I have $55k mortgages on both. My net is approximately $900 after mtg and using your vacancy/repairs/etc percentages...which are really close to what I actually saw.

I would think you could do better on a multi-family.  On one side I'd say that my deal is easier because I only have 2 tenants to deal with and a lot fewer refrigerators, A/C units, sinks, toilets, etc but on the other hand...if one of my tenants doesn't pay or I have a vacancy then I lose 1/2 my rental income.

I am very interested in purchasing a du/tri/quadplex or small apartment, do you mind me asking where you found the deal? Was this MLS, LoopNet, off-market?

Best of luck to you!

I am interested but have no experience in CRE...

I have earthquake coverage on my personal home and on my rentals.  its cheap.  i don't think you'll find builders or inspectors that are knowledgeable in earthquake "proof" construction.  Personally...I don't worry about it.  Safety is more of a concern than money and my properties are now all 1 story so that makes them less prone to come crashing down or have more extensive damage on higher levels.

i didn't feel the quake last night but i have felt some in recent years.  its a creepy feeling.

i'd confirm with your insurance that you have quake coverage and what your deductible is.

@Curtis Yoder - do you mind me asking who you are using? For my SFH's in Broken Arrow the dwelling policy is closer to 0.6% on my 3 properties. My personal residence only costs about 0.8%. That's insured at rebuild cost, low deductible and also includes earthquake coverage.

@Matt Frost - I'd second the idea to get a specific quote, I can connect you with my insurance agency if you need a contact, they are very responsive and helpful.  I'd say if you want to be conservative then you could use 1%, hopefully your deals aren't so tight that a few hundred dollars per year on insurance will make or break a deal.

@Kurt F. - I wouldn't call it lowball...if the house is $150k, market value is closer to $135k and I offer 10% under market then my offer would be 121.5k which could look offensive or ridiculous without some discussion around how I arrived at my value.

@Devon Garbus - agreed that it is legally required to be presented but it doesn't have any "personal touch" and the law doesn't require their realtor to not present it without snarky comments like "you can do better" or  "can you believe the nerve of some people", etc...

@Matt Motil - I have only approached one seller with a sign in their yard. I was out walking with my son and the seller was playing with his kid in the front yard. I asked him how much and he told me, I didn't think he was too far off the price so I asked if I could take a look...then he basically said "leave me alone, I listed with an agent for a reason and not FSBO." I get that, so I left and when I looked up the house later I found that it was about 10% overpriced and had been listed for only a couple days. He obviously wasn't eager.

I can handle rejection though :)

@Russell Brazil & @Wayne Brooks - Good thoughts, I think that is the case sometimes but for some reason it seems that some particular agents are suggesting sellers list too high.  I think they pull unrealistic comps or say that the market is inflated just to get the listing by making unrealistic projections.  Maybe the realtor or the seller are resistant to price drops and therefore they don't even get offers because the price runs everybody off.  I might be able to come in with a "Buy it NOW" price that would incentivize them.

@Brian Gibbons- I really like the postcard idea, I will work on getting some designed for us.  I've done some light reading into lease purchase options but I'm not real familiar with them.  I'll do some more research.  Thanks for that suggestions!

In my market it seems like there are a lot of sellers that are getting bad (too optimistic) pricing advice from their realtor and their house sits on the market for months.  So, there are several houses near me that have been on the market for a while.  I wanted to get the BP communities thoughts on bypassing a realtor to contact the seller directly.  NOT to bypass the realtor in the contract phase and NOT to cut the realtor out of their commission...ONLY to offer and negotiate directly with a seller.  I definitely believe that if the house is listed with a realtor and that is why I found it then the realtor should be paid their commission.

It is unethical or illegal to do?

In old days it may have been tough to find out who the seller was or how to contact them...well actually if it was an owner occupant it may have been easier when everybody's home phone number was in the phone book!  Nowadays I can look up the owner online then typically use Facebook or other site to send them a message or even get their cell number.

I see 4 primary ways to contact:

• Knock on their door
• Mail a letter
• Phone call
• Online message (Facebook, etc)

I imagine the conversation or note saying something like "Hi, I am a real estate investor looking to buy properties in your area and I noticed that your home is listed for sale.  If you are interested in selling your property quickly and easily please give me a call so we can discuss how I can help you.  I want to ensure you that I am a buyer, I am not a realtor or wholesaler."  Obviously expanded upon and formalized for a note or informalized for in-person or phone call.

I would then hope to meet with the seller directly, agree upon a price and then I would submit my final offer to their realtor.

Thanks for your input!!

My investment areas: Broken Arrow, Tulsa, Oklahoma City, Coweta, Bixby, Claremore, Wagoner