All Forum Posts by: Mike S.

@Aaron Bress Thanks so much for the insights and additional encouragement to turn to a buyer's agent rather than working directly with the listing agent. You make such an excellent point about the appreciation and cash flow of the deal--if done right--paling in comparison to any agent commissions. And indeed, it seems to be misguided to believe the seller's agent would be an impartial advocate for an unrepresented buyer--thanks for helping me see the shortcomings of what I was reluctant to face. I hope life is good in SLC. Thanks again!

@Drew Sygit Thank you. I appreciate the insights. On the heels of your guidance, I dug into this deeper and fortunately no rules of first contact apply (which is a relief given the relatively brief and informal nature of my inquiries about the property). The state's real estate commission also provides some protection from unwittingly stepping into a relationship with a brokerage: "No agency relationship between a buyer, seller, landlord or tenant and a brokerage shall exist unless the buyer, seller, landlord or tenant and the brokerage agree, in writing, to the agency relationship." This is great to keep in mind though since--as you note--many states will have different guidance on rules of first contact. Thank you again, Drew!

@Nathan Gesner and @Jonathan Greene I can't thank you enough for the feedback. I'm honored that you fielded my question, as I always greatly value the insights and wisdom you both share so generously. I appreciate all of the guidance on the shortcomings of relying solely on the listing agent and the faulty assumptions about the benefits of doing this. I'll be sure to heed your advice--and know I stand to benefit greatly from it. I hope you are having a wonderful weekend. Thank you again!

I've been in contact several times with the listing agent of a five-unit property that is being offered with seller financing. I am an investor (and not an agent) and--if further initial due diligence pans out--aim to submit a letter of intent for the property.

I'm torn, however, on whether or not to work with a buyer's agent to put in my offer or move forward with simply working with the listing agent. I'm grateful for any insights and recommendations people can share given the details below.

For some context . . . the listing agent has been candid and transparent about the property and its issues (there are a few reasons it's fallen out of contract a handful of times in the 300+ days it's been listed). My thoughts are that working directly with the listing agent may streamline communication (especially when working out the nuances and terms of various seller financing offers) and increase the likelihood of putting together an offer that meets the sellers' needs and that they ultimately accept. That being said, I wonder if it would be valuable to have a second set of eyes and a second, detached perspective on this.

If I were to put in an offer with a buyer's agent, I would use one of two agents who are also both property managers and work significantly with investors. I intend to work with one of them to handle property management but have yet to make a final decision as to which one . . . I suppose an alternate approach would be to make a final decision about which of these agents would handle the property management and see if she would simply be comfortable fielding some broad questions along the way (mainly with regards to market conditions, contractor recommendations, and some locale-specific due diligence).

For what it's worth, the property is out-of-state. I worked in the adjacent county for a decade before moving away about ten years ago and have a decent understanding of the community and general market conditions. That being said, this five-unit is located slightly outside the area/neighborhoods I know and understand best.

If you've made it this far, thanks a ton for reading and thank you advance for your insights on whether or not to enlist a buyer's agent.

@Wesley Edwards That's great to hear. Congratulations on all of the repairs--and the wealth of skills you've acquired. I'll be sure to check out Kirk Giordano's plastering channel on YouTube--thanks for the recommendation. Once the dust settles from the project, it would be great to see a recap and photos of the project. Thanks for circling back on this thread and sharing the update. I hope all is well!

@Dylan Nelson--Thanks so much. I'll send you a PM. I greatly appreciate it.

@Nicolas Dib De Castro--Thanks for sharing your insights on the availability of these loans as well. That's great to hear that 30 year fixed mortgages for an LLC are not as elusive as one often hears.

@Odie Ayaga--Thanks for the insights and the reminder that buying down rates is also feasible with these loans. All of my recent conversations with lenders have focused on borrowing as an individual. Knowing that 30 year fixed mortgages to an LLC are definitely feasible gives me reason to explore some new options and opportunities. Needless to say, I'll be talking with lenders about this. Thanks again.

@Dylan Nelson Thanks for revisiting this post--and helping field a question that I know many have. Do you have any recommendations for specific private lenders offering 30 year fixed mortgages with an LLC as the borrowing entity? The few I've encountered in doing some cursory initial research have had rates higher than the mid 5's you mentioned so your post definitely caught my attention. Thanks in advance!

@Dave Skow Thanks so much for the insights. I greatly appreciate your perspective as a lender on this. I've been looking primarily at properties in the Emerson Garfield and Northwest areas and am just now diving a little deeper into Hillyard. My bearings and sense of the market in Hillyard definitely aren't as strong as elsewhere in town.

At the risk of putting forth some broad questions, what are your thoughts on the Hillyard area of Spokane (99217)--especially with regards to long-term SFRs? I realize that one might need to evaluate the area on a block-by-block basis, but overall how do you feel about the long-term prospects of this part of town? If you invest there or are familiar with the area, what are your general thoughts about it? Thanks in advance!

@Wesley Edwards I know it's been awhile since you posed your question, but I'm curious what you ultimately decided to do. When you have a moment, I'd love to hear an update on this.