All Forum Posts by: Account Closed

As many wholesalers as I've tried to deal with and the hundreds of hours lost, i've rarely seen any deals a flipper could so something with. A buy/hold guy, sure easy. Not really flipping margins though.

I'd kill the shortsale with that agent and resubmit with another. No sense staying in a bad relationship. I'm not so negative about the idea of the agent trying to grab the fee for his broker, i however am uncomfortable with the idea he wouldn't take your call/email about the matter.

And to think, i pay my assistant every week. I'm an idiot.

Maybe helpful?

Q: What is the Busby case?

A: Vicki V. Busby ("Buyer") purchased a home using a federally insured loan. JRHBW Realty, Inc. d/b/a RealtySouth ("Brokerage") represented the Buyer in the transaction. The Brokerage charged the Buyer a $149 "Administrative Brokerage Commission" ("Fee"), in addition to receiving a commission paid by the Seller. The Brokerage charges all of its clients the Fee, regardless of whether the client is a purchaser or seller.

The Buyer filed a lawsuit against the Brokerage alleging that the Fee violated the Real Estate Settlement Procedures Act ("RESPA") because the Brokerage did not provide any services to support the Fee. The court stated that an 8(b) lawsuit could occur when no real work is done in exchange for the fee, or the fee exceeds the reasonable value of the services actually provided.

The United States District Court for the Northern District of Alabama ruled that the Brokerage had not identified settlement services to support the Fee and therefore the court ruled in favor of the Buyer and the class she represented.

Call the title company and ask them who authorized the charge and let them know you aren't ok with it. Ask them to produce in writing why the person is entitled to it.

Hud contracts by themselves don't allow for this, if you signed some sort of addendum with the contract then you might be stuck.

If you are closing with lawyers advantage or island then you got hit with even more junk fees.

I guess i should just ask. Would you guys do the deal or pass.

What questions remain unanswered if you can't answer.

Offering public information in a quick and easy way only allows less motivated and/or less educated people the same access.

I've done it, Bird in the hand is always a good thing if the numbers are clear to begin with. I'm all about risk management though, it isn't so much about getting every possible dollar. I didn't let them see it though till demo was completed. I also didn't let the wife see it till it was mostly back together. Made the husband describe it to her. It was basically a carbon copy of what we had done a few streets over.

The buyer ended up putting in some custom upgrades that i wasn't fond of. I made them pay a non-refundable deposit for any upgrades they wanted with the full knowledge for any reason, including financing this deal falls apart, i'm keeping that deposit. I only made them give a deposit for things i didn't plan on. Like they wanted marble instead of Granite. I made them give a deposit fro the price difference on what I was going to do and the color they picked for marble. Same rule would of applied if the colors were out of the norm for paint/tile etc. Purple walls? Sure, 1500 non-refundable deposit please. They didn't change much compared to my plan, a slightly different shade of tan for the walls I didn't make them put more down for. Lots of small choices i let them do since I didn't care either way. They i think saved me time with a lot of the little stuff. I embrace free labor.

It worked out in the end. If it would of not closed with them, i was happy with how the flip came out assuming I could offset the extra improvements I didn't think made financial sense. I'm sure though things would of worked out better for me if they had no closed. Extra appeal to the next buyer. They had maybe 3000 in extra deposits?

Ran into very few of these types of situations...

*taps the microphone*

I list REOs, not as many as i use to since I shifted my business, but at one time I might of had 60 or so REO listings in the pipeline

The reason you are getting pushed to a buyer's agent is because they are part of the listing agent's team. A strong REO agent has several agents under them doing various tasks. Included in that is dealing with annoying buyers who ask too many questions. They then get a piece of the buyer's agent commission. ANY agent selling at less than a 250k average home price profits better from listings than from buyers. I can't think of any agent I've ever talked to that can juggle all their buyer leads along with growing their listing business. An assistant and me can juggle a serious amount of listings. Maybe 100 at a time? A buyer's agent starts to fumble at 6-7 active customers. Imagine trying to juggle 20 investors at one time....never gonna happen.

What banks cut commission if you dual? I closed a bank owned property on friday. They paid both sides to our brokerage. Never heard of such a thing. I've closed hundreds of REOs...

Short sale lenders will try all sorts of stuff. I've only bought a half dozen short sales and I think I've sold like 2, so i can't speak much about that. Seems like the agents would have to agree to this?

It is my firm belief that agents work for themselves, not their clients. I've very rarely heard an agent say something that is bad for them. I only have the expectation that agents act as Transaction Broker (standard in fl). If its not listed below, don't expect it. That includes free CMAs

A Broker providing services as a Transaction Broker shall:
(a) perform the terms of the Agreement to which this Addendum is attached;
(b) treat all parties to the transaction with honesty and exercise reasonable skill and care;
(c) be available to (i) receive all written offer and counteroffers; (ii) reduce all offers or counteroffers to a written form upon
request of any party to a transaction; and (iii) present timely such written offers and counteroffers;
(d) when an offer is made the Broker shall inform in writing the party for whom the Broker is providing services that such party
will be expected to pay certain closing costs, brokerage service costs and the approximate amount of those costs;
(e) timely account for all money and property received by the Broker;
(f) keep confidential information received from a party confidential as set forth in paragraph 3 below;
(g) disclose information pertaining to the Property as required by Residential Property Condition Disclosure Act;
(h) inform the party for whom the Broker is providing services that the party will not be vicariously liable for the acts or
omission of the Broker; and
(i) comply with all requirements of the Local Real Estate License Code and all applicable statutes and rules.