All Forum Posts by: Ryan Ruiz

I have a quandry.

I am looking to buy a property and the seller is an older gentlemen who is sick, possibly very sick. I contacted his agent and it is actually two women, mother and daughter, that represent him. They have been extrememly pushy and trying to get me to the table. Very high strung type personalities. So far they have made these blunders:

1. I sent a list of questions via agents that I needed answered before I even looked at the property. They responded several times saying they had talked to him and everything was good and we should meet. They set up a meeting with an attorney this thursday, BFD deal, and we have half an hour slotted to ask/answer questions. The attorney is doing it for free, but I explained to them I don't need an attorney yet, I just need exact answers to the questions so I can decide if I need to move forward. Seeing that I didn't get that I asked them if they had even asked their client the questions. instead of answering me directly she steered toward the meeting on Thursday and said that's the time they expect me to ask questions and get answers on the items I needed. I stoped her, and asked again, did you ask your client the questions? She again tried to steer away. I cut her off and asked her again. She finally admited no, she had not. I explained that I needed those quesitons answered because if her client was not willing to at least entertain my terms then it would be unecessary to go further. She got upset with me and said that if I had a certain dollar limit then I should just let my agent know and she would tell her and they would ask the client if it was enough. She was rude and unprofessional and basically told me she didn't ahve time to ask her client the questions.

My agent is also having a hard time with them. She contacted them to say I was interested in the property and would like to get some questions answered and schedule a showing. They said sure, but then called her twice that day to ask if they were going to get a contract signed by COB that day. She explaine to them I have my due diligance to do and needed to ensure it was a buy I wanted. They seemed miffed that it would even take that long.

She also noticed on the MLS that they had marked the comission as 30% not 3% and when she called their office to let them know, they seemed indifferent to it. It got changed later, but she explained to them it was a serious violation of realtor practice and could have put their client on the hook for a huge comission.

So here is my questtion/concern. I believe these realtors are fully taking advantage of this old man, and I don't know if I should call him and let him know what's going on. I know I may lose the deal, but I have signed nothing and don't know if I will get in trouble for letting him know.

Any thoughts?

I'd write it up that if they can't come up with the rest then you get to keep the deposit. That's part of what a deposit is for.

Just a note. I just bought a property where the leases are almost up. In the original leases, the previous mangement company accpeted less than full deposit. When I bought the property almost a year later, they were still having to finish collecting the deposit, and on top of that they allowed one of the tenants to pay late (like 15 days) regularly and had even verbally agred to allow pets in on unit, in violation of lease (needed to be in writing). I made him correct all of this before I went to close. I didn't care what deals he made, he had to have the full rents and deposits paid to me. So, No, don't do it. I can see the troubles that mindset brings in the longrun. Be firm and trust a good tenant will come by. The fact that they are asking you to accept less means they rushed from somewhere else or are pending eviction and in either case tha means poor planning/money management on their part and you don't need that headache.

I had thought about using it as a downpayment at first, but I figured he initially expected someone to either buy the property or finance it, thus giving him his equity, and from there he would pay his realtor costs. This method gives him no money, but I can see your point. If I pay him the downpayment with what I have he can then use it to pay the comisssions. In the end I will end up reducing my principal and interest. Great idea. I will bring it up when I talk to him this Thursday. But I agree with you, I would not accept a BFD without a DP. Thanks for the quick reply!

We haven't agreed to any exact terms yet. I was going to pay all commission fees because I am asking him to accept no down payment. My feeling is that he just wants out of the property and he doesn't want it to cost him anything. He is sick, I think very sick, and he is well past his retirement. Since I wasn't offering anything down I figured it at least fair he not come out of pocket for the fees.

What kind of closing costs woudl be involved here since there is no lender? Am I on point with about 2-3G above the $12,000 for comission?

Hello all,

I am seeking guidance on a Bond For Deed I am about to walk into. I purchased my first property on 5/7/2014 and used the VA home loan. It is a 4plex and I move in about August time frame. A day after I bought the place I noticed a 4 plex on the same street up for sale. It was an elderly gentlemen who was wanting to get out of dealing with the property. I knew I could not get the 20-25% needed for a down payment so I decided to research other options. I came accross Bond for Deed and decieded to ask him through the realtors if he would be ok with that,and no down payment, as I could not afford it. To my surprise, he agreed. I'm cautious by nature so I will still do a full inspection of the property, but my question is, aside from the attorneys fees and realtor's commisssion of 6% is there any other costs I should expect to see? If I am buying it for $200,000 I was figuring total cost to me at about $13,000-14,000. Sound about right? Any words of advice? Oh and it's in Louisiana so I know that matters on how the contract works.

Just wondering how this turned out for you. I did the VA loan on a 4plex and will move in sometime in August. You can delay it for up to a year depending on the circumstances. I am trying to get the funds for a second purchase as a conventional loan.

I am donig this right now. Just clsoed on 1st property 2 weeks ago, 4plex. I have no equity on the deal as it was appraised almost to the dollar of the purchase price, but I do pull $1300 a month over the mortgage, with the water and other expenses I expect (hope) to get at least $800 clear per month. The problem I hit rigth out the gate is getting the funds (20%) for the next purchase. VA was a great way to enter as a OO, but now i'm stuck. I plan on staying in the 4 plex and branching out from there for at least a year. FYI, on any invenstment property these banks seem to need the 20%. So, your attempt to refinace at end of year to get out of the VA loan might require that much at a minimum. I havn't solved this one yet and just signed up to this forum to see if I can find a good viable solution.