All Forum Posts by: Jon Fletcher

Update: I mailed 65 letters and got ONE response... That's a 1.5% response rate... I then mailed a second letter to 50 of the properties and got no responses... Any further advice?!

0 Votes

Upstate New York, New York

Thanks @Andrew Pope and @Theresa Harris Can you please provide me with a couple of sentences that I can go back to him with? If I simply say that the Landlord isn't responsible without any clarification or justification, I feel that it won't be received well.

0 Votes

Upstate New York, New York

Good advice @Bill O'Donnell thanks!

1 Vote

Upstate New York, New York

What kind of cap rates are people seeing in Newburgh, NY today? Back in 2019 it was about 9% or 10%. Now it seems seriously compressed to as low as 6%. I'm not sure if this is what things are actually trading at, or just what Sellers are looking for. What are your thoughts?

1 Vote

Upstate New York, New York

My ground floor tenant had minor water damage after Ida ripped through NY on September 1st. He's asking me to compensate him for the cost of a couple of furniture pieces. My question is; who is responsible to pay for the damage? Me as Landlord? Or Tenant through his renter's insurance? The water came up through a storm drain and infiltrated the apartment.

0 Votes

Upstate New York, New York

The market in Newburgh has gone nuts. Two or three buyers with large amounts of cash have bought dozens of buildings and driven up prices there. Maybe hold off until it cools down.

2 Votes

Originally posted by @Leilah Davis:

Originally posted by @Jon Fletcher:

This goes back to my original question: If you're the Buyer and the Buyer's agent, is that something you disclose upfront? Has anyone experienced the Seller's Agent reacting badly? (Even if it's not within their right to.)

In my state you're required to disclose that you are a licensed agent anytime you are personally involved in a real estate transaction. Not only if you are buying or selling a property, but even if you are acting as an agent and you are related in some way to a party to the transaction.

Anyway, yes I would DEFINITELY disclose upfront that you are a licensed agent and that you are representing yourself. I have only ever done this on the selling side, so I don't have any specific experience as to how a seller's agent would react, but I can't imagine why they would care. They signed an agreement with their client to list the property for a certain percentage and they are expecting to split that with the buyer's agent. They don't really care if the buyer and the buyer's agent are the same person, they're collecting the same amount of money they expected to from the beginning, so it really just doesn't affect them much.

Thank you Leilah for the helpful insight and responses!

1 Vote

Upstate New York, New York

Originally posted by @Michael Lynch:

@Jon Fletcher Add an addendum that indicates you are an agent and reduces the $100K sales price to $97, indicates listing agent is entitled to $3K, and that there will be no sales agent commission. (Addendum more complex if you are not a broker and would owe broker.)

Or, identify as a buyer's agent, take the commission and, for taxes, reduce your basis by the commission amount. Include the commission in income on schedule C and include a schedule C expense entitled something like Commissions received as principal. Of course, you need to adjust down your basis in the property you acquired.

This is helpful. Thanks, Michael!

1 Vote

Upstate New York, New York

Originally posted by @Charles Beck:

It’s not as if the listing agent has the authority to decide whether or not to split the commission with the agent representing the buyer.

1 Vote

Upstate New York, New York

Originally posted by @Waylon Zook:

@Jon Fletcher each to his own but i would rather have the discounted salesprice.

That only makes sense if the Seller then pays the Seller's agent only half the commission, rather than the full commission. Maybe I'm not understanding your situation. A discounted sales price and having the Seller's Agent split their commission with you are not mutually exclusive.

3 Votes

Upstate New York, New York

All Forum Posts by: Jon Fletcher

Jon Fletcher has started 30 posts and replied 172 times.

Post: Off-Market Mailing Campaign

Post: Tenant Flood Damage - Who's Responsible?

Post: Newburgh, NY Cap Rates

Post: Newburgh, NY Cap Rates

Post: Tenant Flood Damage - Who's Responsible?

Post: Help a newbie settle on LOCATION

Post: Broker Commission on Your Own Purchase

Post: Broker Commission on Your Own Purchase

Post: Broker Commission on Your Own Purchase

Post: Broker Commission on Your Own Purchase