All Forum Posts by: Nick Wing

Buyer does not pay the agent, the seller does. So don't worry about "tipping" anyone. There is also many things that normal buyers think that they know that they do not. Home inspections, appraisals, and negotiations. When we are buying houses to flip we use agents although here in our office we are all agents or brokers. This is because there is so much work to do that we would waste our time instead of looking for more deals. 

A dual agency relationships is a very touchy subject and it comes down to the ethics of each individual agent. Just because it was $3000 more does not mean it was a better offer. Maybe they had no home inspection contingency or loan contingency, or maybe they were actually closing all cash, or maybe they had a larger down payment or were more qualified. 

Because it is structured similar to a partnership, the Flipper (in this case Roman) and the Lender, would have agreed to all costs prior to the project taking place. The money for the purchase would likely be released to Roman at the close of the Purchase, and the rest of the money for the repairs would be released as Roman completed each phase of the rehab. In our program he would have to use his own money initially for the repairs, however would be reimbursed as repairs were completed. When 25% of the rehab is complete and verified, the lender would release 25% of money set aside from the rehab budget back to Roman. The way we work, once the property has been completely rehabbed and listed, the borrower should have none of their own money invested the project anymore. 

If the property is unable to sell within an agreed time frame or for the estimated resale value, there can be various things that may happen. Lenders should have already planned in case a project does not work out and each will have its own way of recovering their investment. Depending on the agreement things like profit split may change, or the lender may just take over the project completely. 

This is a general way of how we work, I cannot speak for all private lenders There are many other ways that these partnerships and loans can be structured. 

I hope I cleared that up for you. 

Real hard wood is easier to refinish when damaged, the thin layers of veneer on the engineered wood can easily break/crack/splinter. (I worked in a wood factory from the age of 16 to 20). I saw every type of wood possible, Hardwood is the best for refinishes. See some higher end homes where we refinished the existing flooring. Hollywood, CA.

La Canada, CAWest Los Angeles, CA (We encased the stairs with real wood)

Hey Amanda,

That is not very good deal. Check out the market rent in the area (rentometer.com), multiply it by 75-100, and that is what you should be purchasing the property at or around in order for it to make more sense as a rental. You have to dig really really deep and do hard negotiating in order to find a good rental deal in So Cal at this time. If you are interested in meeting more local investors and learning a bit about REI, there is a meet up in Claremont on November 6th.

Lenders originate loans and an agreement is made in a promissory note. A promissory note is a promise in writing to pay back the lender from the borrower with all the details of the agreement (ie who owes who, the loan amount, rate, term, etc). This promissory note is secured by a recorded instrument on the title of the property being used as collateral for the loan.

Basically a Note is an IOU, whoever owns the dept, the IOU, is able to sell it. 

Some notes are performing, meaning that the borrower is current with paying the agreed upon terms. OR there are non performing notes, meaning the borrower has defaulted on the terms of the note. 

Just like all real estate people invest differently in notes. Some buy high interest performing notes, or some people like buying non performing notes.

This is very general info, if you want more info please contact me, or read on like suggested above! 

Best Regards

Well they did create an IMPLIED agency relationship. However let me rephrase the "if he could prove it" sentence. Since they do have an IMPLIED relationship, if the agent could prove a discussion about COMMISSION in writing, then seller/investor would be responsible to pay the commission. So yes as you said, in order to legally be able to recover the commission, it would have to be in writing. An email, text message, or something that simple may be sufficient. 

But again, as you agree, it all boils down to how the relationship was structured, and if it is worth the money. 

If he is actively bringing you deals you must be crazy not to pay him, especially if you have a previous agreement that he will be listing the properties he brings. In California, that in fact is creating an "agency relationship" which if he could prove it, should hold up in court. Besides the legalities of it, do you want to sacrifice your deal flow and reputation? 

If we say an agent will re-list, they will get the opportunity. If we find the buyer, they still get paid. The only way they don't get paid is if they do not sell it within a certain amount of time, then we make a switch to another agent. 

Step back and look at who is really being greedy. You should be making more than him on every deal. What if he began to start flipping houses, you will never see another deal from him again. Keep him on your team, everything always runs smoother when everyone get a share of the pie. Maybe negotiate the 2% down, but make sure you do not kill a relationship. 

Hmm, that is funny, I was just talking with someone about the same thing today. I was not planning on ordering it, more was just wondering how good the content would be. How did you hear about it? 

Yes, actually many standard banks and financial institutional will not lend on a property that is not seasoned. Therefore people purchase with hard money, rent the property out, and refinance out with a more traditional lender once the property has been seasoned a few months. 

Out here in California, it is cheaper in most instances to just transfer utilities to a new name rather than turn them off and turn them back on.