All Forum Posts by: Mona Lisa Harrison

For a better understanding of WHY we are talking about inflation, the FED, interest rates, etc, read The Creature From Jekyll Island by G. Edward Griffin. It's a thick book but an easy read. Goes down a lot of interesting rabbit holes, however, they all connect.

And you will better understand how the world and money work. And you will likely get very upset.

This case has been reopened.

Clear Cooperation policy — which had been dismissed in 2021 — will be able to proceed.

December 21, 2023
Robert Davis 
Real Estate News

California District Judge Vince Chhabria agreed to reopen a lawsuit against the National Association of Realtors that seeks to prohibit agents from selling so-called "pocket listings," or properties that are not listed for sale on the MLS.

Background: Private listing service Top Agent Network sued NAR in May 2020, challenging the organization's Clear Cooperation policy, which states that an agent or broker must submit their listing to the MLS within one day of marketing the property to the public. The lawsuit alleges that NAR conspired with the San Francisco Association of Realtors to force agents to list their properties on the MLS, thereby increasing the dues and membership fees that NAR collects. It was filed in the Northern District of California.

The suit was initially dismissed in 2021, but the case was sent to a lower court for review in August 2023 after TAN's lawyers argued that the plaintiff's claims were strikingly similar to those in a case filed by another private listing company, ThePLS.com.

New developments: The lower court review has now concluded. On Dec. 18, the district judge filed an order to reopen the case, vacating the previous order granting a motion to dismiss.

What's at stake: TAN CEO David Faudman has previously argued that NAR's Clear Cooperation policy effectively prevents private listing services like his from gaining a foothold in local markets. In August 2021, he described the policy to Reuters as "just another anticompetitive attempt by the NAR to use its monopoly power to crush market alternatives."

A spokesperson for NAR told Real Estate News in September that the Clear Cooperation policy "ensures brokers and agents serve the best interest of their consumers and promote equal opportunity for all."

Some MLSs, including REcolorado, have also defended NAR's Clear Cooperation policy. REColorado described it on their website as "pro-competitive" and "pro-consumer."

The reopened lawsuit is the latest legal arrow aimed at one of NAR's policies. NAR is also fighting multiple lawsuits over commission practices and policies.

Real Estate News has reached out to NAR for comment about the lawsuit being reopened but did not immediately receive a reply.

When I read articles like that, I always ask, "Where did they get their data?" We know they are not calling investors and asking about their flips. Attom Data said they used sales deed data. Anything sold at arms length and then sold again arms length within 12 months was considered a flip. They only report the gross profit. What you sold it for minus what you bought it for. No accounting for rehab and selling cost and holding cost. I'm sure that varies greatly by location.

And in our market in the last year, we've seen people who came here and bought and then changed their minds about living here and sold. Not a flip. Get your BIG GRAIN of SALT out for that one....

Would co -signing a loan for your relatives make sense? That said, I'm not a huge fan of cosigning, but if it all falls apart or they move away, would you be ok ending up with a house that you are responsible for? 

Massive zoning changes just took affect July 15th.

Here's a link to 'read all about it'.  If the property is in the city limits, this will determine what you can do.

You can also pull up permitting history to see if permits were pulled.

I would say be careful, converting a structure like a garage into a livable legal unit takes a lot of money, time and permissions. You say there's a run down commercial building next door. Things like that will affect your rent.

You make your money when you buy....

In South Carolina, to market a house for sell that is not your legal property requires a RE license. So even if you showed POF and got it under contract with seller, when you turn around and market it as a wholesaler, you are acting as an agent. AND I'm sure that listing agent had an exclusive right to sell agreement with the seller, so there's that.

Let's assume for a moment that we do not "know" what is causing this and let's take an educated guess.
Here's what mine would look like:
-High inflation taking away money for travel
-High saturation of STRs in many areas. 
-Higher gas prices
-Uncertainty in so many things...
-Higher costs for STRs
-Better alternatives to STRs

From HUD website:

Federal Housing Administration Increases Dollar Amount Threshold for Large Multifamily Loans to Be Eligible for Standard Underwriting

Change facilitates greater flexibility for lenders when underwriting Multifamily transactions up to $120 million.

WASHINGTON - The Federal Housing Administration (FHA) today published a Mortgagee Letter that increases the threshold at which a Multifamily loan is considered a Large Loan from $75 million to $120 million. This is the first increase in the threshold since 2014 and will enable a greater number of transactions to use standard underwriting processes when submitted for FHA Multifamily insurance. FHA is also announcing today that it will review the threshold on an annual basis, with the possibility of increasing it in $5 million increments if warranted. The changes are designed to simplify underwriting for multifamily housing development without presenting undue risk to FHA, and to provide for regular adjustments to the threshold so it does not unduly lag market changes.

“We know that borrowers are contending with the dual challenges of increased development costs and meeting the nation’s dire need for more rental housing,” said Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon. "Anything we can do to prudently alleviate extra steps in obtaining FHA insurance will help all of us meet the housing supply challenges before us."

“Revising the threshold, which is almost a decade old, is an important step for us and for the industry,” said Deputy Assistant Secretary for Multifamily Housing Ethan Handelman. "We want stakeholders to be able to rely on FHA-insured financing for a wide variety of multifamily transactions, and without unnecessary barriers."

FHA's Large Loan policies contained in its Multifamily Accelerated Processing (MAP) Guide (Section 3.10) include additional requirements for underwriting loans for FHA insurance that exceed the threshold for Large Loans. The additional requirements do not apply to loans below the threshold amount. Today’s Mortgagee Letter includes page revisions to the MAP Guide to reflect the new $120 million threshold and the annual review methodology. FHA’s other requirements in the MAP Guide related to Large Loans remain unchanged.

Whether to invest in GVL or anywhere for that matter, should be determined by your investment goals. What are you looking to accomplish? Do you need instant cash flow? Are you looking more long term profit through appreciation? I agree with previous poster that the areas around GVL may be easier to get into. I like Pickens Co. 

I always advise my investor clients (and myself) that the rehab costs are part of the "price". Right now you have a house that you can't sell or rent. Only after putting MORE money  and time into it will it give back. GREENVILLE is a great market. It's where I live and work ( agent with investor clients). I try to help my clients determine what the rent would be and what improvements would need to be made to get that rent BEFORE we go to contract.

I am hoping that your "great price" will allow you to get what needs to be done,  done and your rent will be a good return. Welcome to investing in the SC UPSTATE!