All Forum Posts by: John Chan

The listing agent would get both sides of the commission. It doesn't matter who is your buyer's agent, HUD is paying two commissions regardless. On HUDs, it doesn't matter if the listing agent gets both sides of the commission since the listing agent has no influence.

I bid on HUD properties in Cincinnati, OH everyday as an agent or buyer. If I'm purchasing for myself, I put the buyer's agent commission as $0. I can choose a high commission for myself but then my broker would just take a bigger cut. The listing agent commission is set at either 3% or $1,250, depending on the property.

Many buyer's agents usually take the default HUD commission, which is 3% or $1,250. However, if the price of the property is 10k, and HUD is only paying 3%, which is $300, then the buyer's agent really isn't making anything after his broker gets a cut. This is why some agents modify the commissions on lower price properties. On higher priced properties, some agents even put their commission under 3% if it can make the sale by meeting a HUD counter (minimum net price).

If you need more help or need to put an offer on a HUD in Ohio, feel free to private message me.

It doesn't matter. HUD is looking for the best NET offer. The buyer's agent can actually alter his commission. The higher the commission, the less that HUD nets. When HUD counters, they give you a minimum net price that they will take.

Here in the Cincinnati market, I've also ran into MLS listings where the bank is not paying a commission to buyer/agent. It's usually the smaller/non-nationwide lenders doing this, never the JP Morgans and Bank of Americas. It's completely legal as long as it is stated in the MLS remarks.

BTW 2.5% is already a rip-off commission for a foreclosure. I usually see sub-3 percent commissions on short sales and FSBOs.

For Fannie Mae properties, the restriction is that you cannot resell for more than 20% of your purchase price within 90 days. That's applicable in Ohio at least. After that, you can do whatever you want.

The mortgage debt relief act of 2007 may forgive him of the cancelled debt, depending on whether this was his primary residence and a few other factors. You may want to ask for legal counsel on this matter.

Sounds like a great deal Jarred! If you don't mind my asking, how did you run into this deal?

@Tim - I do see what you mean. For some people who make great income and want to make extra hands-off money, it's a good option.

I think the concept of selling turnkey properties is a great idea. The love the concept of the whole website, but from an investor's point of view, I wouldn't buy the properties because in my opinion they are overpriced.

Chris,

What do you mean by "Makes too much sense?"

Turn-key properties are usually over-priced from my experience. They buy the distressed property, rehab it to rentable condition, mark up the price, then sell it to an investor. You could make more money if you went through the whole process yourself.