All Forum Posts by: Kris Kahrs

@Kris Kahrs

I'd recommend calling several of the bigger home remodeling companies in town. They may do a lot of renovations and have some inside info for you. I would also contact lumber yards and see if they know any home flippers in the area.

Hmm ... interesting. Flippers, wholesalers, vendors, lenders, GPs, etc. makes more sense for an investor to keep lists of since they may be doing doing volume and repeat business, but not as much with a retail buyer that does one RE transaction every 8 years or so. However, presuming that you know the ins and outs of due diligence and the escrow process, I suppose you as the buyer could reasonably negotiate down with the flipper from retail price to remove the RE agent commissions, staging, marketing, and additional holding costs that wouldn't be needed to sell direct to you and it might be in the flippers interest to keep a CRM type list of such direct buyers to avoid the longer RE agent MLS listing route. So, I could see value there ... is this what you're thinking or am I missing something else? I'm just curious since I had not fully considered this ...

I don't understand the question. Normally flippers sell their finished product retail on the open market. Their end product can be found on the MLS, Zillow, Redfin, realtor.com, etc. along with all the other retail listings. Are you saying you'd like to buy a turnkey property from a flipper before it hits the open market in hopes that you will get a discount or first crack to minimize open market competition (that will likely work in the flipper's favor today)? Basically, I either don't understand the questions and/or I don't understand the intent behind it of why you ask.

@Kris Kahrs you have no idea how excited your post made me. I knew I wasn't crazy 😀! 

John Anderson This structure isn't meant to scam or defraud anyone. I also use land trust for the ease of transferability. I've put higher end flips in land trust because it was cheaper than paying closing cost selling the traditional way. If I'm asked to cover closing cost, I tell them they can purchase a trust instead. Usually, once the realtor realizes they're losing their commission, they don't force the issue. Absolutely legitimate reason. On those deals, I didn't sell RE, I sold a trust. All taxes were the same, I just didn't have to pay closing cost.

I've even been told by banks they don't care where you put the house as long as the mortgage gets paid. Trust me, I fought my attys when I was going through the corporate structure phase. I have to say, it's close to what they told me it would be. Easy to operate, absolutely above board, and I'm well protected.

Because banks will require a personal guarantee anyway, why jump through all the hoops to qualify for financing when you can do it with the trust/LLC combination, which get you funds for your deals faster with less aggravation.
I've never worried about business credit because as long as I keep my personal credit good, I'll never need it.

I've done multiple deals using this combo and have never had a legal compliance/bank issue.

@Kris Kahrs After receiving payment, aren't you suing for loss due to conflict of interest or at least morality? The agent is suppose to safeguard YOUR interest, and having one of the company executive buys it just sounds fishy to me. To me, it meant that you got what you want, but then, the agent knows that your property is more valuable than the price being sold, his job was to squeeze all the dimes he could get the buyer for you. He and his company needs a refresher from the court.

He's pushing you to accept an offer after 2 days and said offer is 50K below asking? It's hard to give advice without all of the data, the comps, etc. but that sounds like terrible advice. 

I'd let the agent know your feelings so you can attempt to fix it.