All Forum Posts by: Townsend Derick

Tom,

That is incorrect. I have sold many HUD's. If the deal doesn't close then I don't get paid cut and dry. This goes for Residential or REO properties. And as a Buyer's Agent you don't get paid from your client you get paid from the seller and the seller cant pay me until a deal closes.

Chris,

The rule about using your school time as employment is a true statement. I helped a young guy buy a home who was fresh out of high school and he was able to use his Junior and Senior year as employment history. He was currently holding a job in the Navy but it was only six months. FHA is owner occupant only as you know so it will come down to the underwriter about that issue. If he or she understands your situation then they may allow it. I would try to have the "cash for keys" already on paper between you and the tenant and then show that to the lender and see how they react.

It is a two part thing that the agent could have spelled out better.

1.) Buyer assumes responsibility of occupancy: This means when you buy it the tenants will be yours to deal with.

2.) DO NOT DISTURB OCCUPANT: While in the process of purchasing the homes don’t disturb the tenant allow them to have quiet enjoyment.

Ivan,

In theory that sounds good but it depends on what type of rental this is. Is it in a high end rental area or a lower end rental area? And how exactly do you plan on making sure there are no accidents?, will you be doing in-home inspections every 6 months because if I were your tenant I wouldn’t be happy about you stopping by every 6 months 100 bucks or not. If you have a rental in an affluent area what’s 100 bucks to them, might work in a lower income rental market. I would do a "If you are destroying my property I will kick you out policy" I don’t play games with bad tenants. I do hand written letters every so often thanking my clients for paying on time and slide them a $25 gift card or I write them about 4 months before the lease is up and offer them half month off if they renew their lease. The average turnaround time to find a new tenant in my area is around 60 days winter and 30 days spring summer, so I will eat a half months rent not to go vacant.

Chris,

If you have proof of your withdrawal you shouldn’t have to worry about it. Just show them proof and something showing when you relocated and it should be a done deal. If they still want to go after you then you will prob have to lawyer up if you see fit for a 500 dollar dispute.

Joey,

When you run into a non-investor with an 800+ credit score and a pre-approval for 400k you will do the deal... :) I deal with Investors often but I would never consider working with them exclusively. I think it depends on your market. I’m in the DFW and the population is around 6.5 million so I would be doing myself a disservice if I only worked with Investors. It’s like the stock market for me I have to diversify. In the Spring Summer I market more to non-investors in the 4th quarter of the year I market to Investors more.

You should make life easy for yourself and use state contracts. Most title companies will take you more serious when using standardized contracts. Regulations on title companies are strict so most don’t play around with contracts they are not familiar with.

Alex, When people call and ask can they manage your property and then a random agent calls and say they have a client that may be interested in your home that is two different things. So why blow an agent off if they have someone that may rent your home. He paused when you said no compensation because that is not logical. Basically you want him/her to find you a tenant for free? Why wouldn’t you want to compensate someone who brings you a quality tenant? The whole month or even half month ‘s compensation is a bit much so I understand your gripe in that regard. If I find a qualified renter for you I want a minimum 25%-35% of the rental amount depending on the price point. The agents that call just wanting to show your home are not trying to manage it.

@Jerry,

What do you mean by "Instead of spending on agent commissions"?
Because helping individuals acquire properties as a Buyer’s Agent is free of charge to the individual purchasing. Realtors get paid from the sellers in the transaction not the individual purchasing the property. Unless you’re talking about when he goes to list the property after repair then there are some cost associated with that when using a Realtor.

Hello William,

From my experience and many others, when a prospective tenant (1)wants to give you rents for that many months in advance (Beware)...That may be all you’re getting. Not always true but mostly always the case. Prospect number (2), I would go with them. Could be a newly married couple with one not being good with money before they met and married and the other good with money and credit. If they are not recently married I would wonder, why would you let your spouse miss student loans payment if you have good income? Maybe it’s a sign of some type of financial distress or It could be they just started making good income. To me #1 would be a "no go", I know it’s tempting to get 6 months in advance but the risk to me would outweigh the reward in this particular situation.