All Forum Posts by: Nathan Harden

There is absolutely not enough information in your post for any of us to help out.

What do they want for downpayment? What is the house worth? Interest rate? Prepayment penalty? What part of Tacoma?

I use HELOCS for my downpayments. I never lock any HELOC money into any project that I do not plan on getting my money back within 6 months.

My HELOC is right around 9% as well and interest only. I do not recommend locking a ton of HELOC money into anything for years and years. All it's doing is accumulating Interest only, at 9%. I hope that there's enough meat on the bone for you in the deal when the 2 years is up after all of your carrying costs.

Tough tough tough situation.

I ALWAYS try and leave business and family separate if possible. It's an unfortunate truth but you are going to have bad partners and it's always best if that partner doesn't share the same blood.

I think you are digging yourself into a deeper hole by believing that he will pay you back one day to become a true 50/50. What if he gets another wild hair and tries to start another business? Nobody is going to care about your investment like you will. Proceed with caution..... 

Go on Facebook, lots of groups on there. Also, investorlift is another great website where some wholesalers put their deals on as well. 

All the best!

Personally,

I love it. I think that after a year or so we will see the number of agents dwindle DRASTICALLY. It’s going to turn into supply and demand. The demand of buyers will still be there but with less agents to compete for their business with. 
I’ve been practicing buyer agency agreements and the way I explain it is that, no I do not work for free but nothing is really changing. The buyer has always essentially paid the buyers broker compensation through the purchase price if you really think about it. The buyer pays $500k for the house, a buyers agent commission has always been built into that sales price. 
So if a seller isn’t offering a commission on that $500k house. Add your fee on top of the $500k so it’s all wrapped into the purchase price. This way, you get paid and the buyer still has representation without having to come out of pocket for the buyers agents commission. Win win. 

I think the buyers agency agreement is great for agents who produce, and the agents that do real estate as a side job will be a thing of the past. 
Now, I would like to know what they plan on doing about appraisals going foward…

Chris,

Where are you looking to get started? Have you ever thought about partnering so that way you are able to still learn and get hands on experience all while actually going through the process instead of you paying someone to tell you how to go through the process.

 Atleast in the state of WA, a buyers agency agreement is the law now. 

That being said, 3% is too much. Only go with brokers who are offering 2.5%. This is the norm, so there should be no extra money that is needed from you at closing just so the agent can make an extra .5%.

 Glad to see that I'm not the only one that is noticing this!! Jeeeeesh. Just had a seller tell me his 10plex was worth 2.5 million, when I brought him a direct comp that sold within a year, in the same town, same condition.... Except that was a 12 unit and it sold for 1.8milly. 

 I agree with Chris. Sounds like the other two are the ones putting skin in the game and you're the one that brings them the deal...? If that's the case, then there doesn't need to be 3 investors. Assign the property to the other two, collect your finders fee and move onto the next deal. 

If it only has 1 bathroom, it MUST have a tub to give it a full sized bathroom.