All Forum Posts by: Leilah Davis

I don't know much about your market ... but I'm not sure why you'd expect any general contractor to work with a spec developer in this scenario. Why would they accept making pennies on the dollar to help YOU make a profit? What's in it for them?? 

How can you possibly blame them for getting "hooked" on charging $700 / sq ft to build custom homes, lol. If you were in their shoes, wouldn't you get "hooked" on that too? If they're building custom homes there's a major pain-in-the-*** factor that they need to account for, and if customer's are paying the price, then that's market value. It is what it is!! 

Finding a lot to purchase shouldn't be that different than finding any other type of property. There are many methods, from auctions, door knocking, bandit signs, whatever. I work entirely within city limits, so haven't had any experience with developments or homebuilder restrictions. 

Question - are you a general contractor or are you planning to hire one? If you're hiring a contractor I would ask for their input (or just allow them to handle) hiring the subcontractors ... If you hold a license and are planning to manage the project entirely on your own, then I would suggest finding subs through your local licensing board. Ours licensing board has a search function and you can search by trade.

@Jon Fletcher happy to help!

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. 

You're right, the seller's agent CAN do that. I never said it was "out of the question" but I don't understand why you as the buyer's agent would ever put in an offer that relies on somebody else being honest and doing extra work in order for your offer to be accepted ... all to avoid a small amount in taxes?? Making something complicated for the people on the other end of the transaction is a detriment to the offer, it's basically like adding an additional contingency. If you want your offer to stand out to the seller, the best thing you can do it put in this HIGHEST offer, and then collect the commission on the backend.

The part that is not making sense here Waylon is that the seller has a signed agreement with the listing broker to sell the property with a 6% commission (or whatever it is) and that agreement usually doesn't change, regardless of whether or not you accept the commission split as the buyer's agent. The commission split is something that the listing broker is OFFERING to buyer's agents. The sellers simply don't care whether or not you are accepting part of the commission, because they are stuck paying the full 6% either way. The listing agent and listing broker will certainly be happy to collect all 6% instead of sharing the commission with you ... but unfortunately the listing agent & broker are no the ones who get to decide whether or not to accept your offer. This is why everybody is saying it's silly not to take the commission split. You are just giving money away to the listing broker for absolutely no reason ... 

Not sure I understand ... why do you need a registered agent? Setting up an LLC is extremely easy, at least in my state. Anyone can do it, it's literally just a form you have to fill out to get your Articles of Organization and then go to the IRS for your EIN. It's a very simple process.

@Account Closed I have long fantasized about the idea of living in a tiny home, even and a tiny home community. I don't think I'd ever actually want to, but I certainly see the appeal. I have also thought about the potential for tiny homes for awhile. Basically, I think it's a great idea! Don't let the naysayers steer you away from a good idea, as long as YOU have run the numbers and feel confident that it can work. Just because the market for something is small doesn't mean it isn't worth pursuing (if anything, the fact that more people aren't saying "hey that's a great idea, maybe I'll try it too!" is a good thing. It means you've really cornered the market!) Good luck!!

@Account Closed LOL! that's awesome man, congrats!

I ditto everything @Account Closed said ... except the part about lots sitting for a long time. We build spec homes as well and lots in my area are selling like HOT CAKES! We just lost out on a lot today that went for $85k (we were planning to offer $95k but the seller didn't even bother to give me a courtesy call before going under contract.) Bill, where are you based? If you want some competition company in your area, we'll happily come and help you buy up those lots!! JK JK ... Anyway, I think it all depends on the area, and what option is going to make the most sense financially also depends on the area. I agree that with FIL being a builder, if he's willing to work with you and get you discounts seems like SFR would be the best route! Especially since that's his area of expertise and he can help guide you a little. best of luck!!