All Forum Posts by: Richelle Bryan

 Really depends. What type of property is it? I see buyers requesting this type of stuff on single family &/or duplexes all the time. These are things that the overwhelming majority of owners simply do not have. Many don't even know what a P&L is. Now if we are talking a 20 or 30 unit apartment building that is being managed by a professional management company then that is a cause for concern.

@Richelle Bryan I smell a skunk. The expenses could skew numbers but a savvy investor would understand how to navigate that. 

 "Reasonable" is a matter of opinion.

Assuming you have an inspection contingency, you can ask for basically whatever you want, with all parties knowing you can back out if you don't like what you see (or aren't allowed to see).

Instead of asking him for a P&L (he might not even maintain a running P&L), you can ask him for a copy of his most recent Schedule E with black marker hiding all numbers but those for the subject property. You can also ask for estoppels and copies of all leases. 

(You want the leases regardless, IMO, to ensure there are no equal housing violations or anything about "rent to own" that could cloud title. This is my personal opinion and others will disagree with me.)

Are they refusing to share any income/expense data or are they simply unwilling to provide a formal P&L?

When some people hear "P&L" they may think you are asking for something formal, which they may not be able to produce. I bought 11 units last year and the "P&L" was written in pencil on a piece of wrinkled notebook paper.

If they are unwilling to share any numbers, then I would suggest they are hiding something and you should walk away. Explain to them what you need and why. Offer to sign a non-disclosure. If they refuse, walk away.

 Im sure they would be exclusive to you if you were willing to pay the entirety of what they typically make during that time frame.  So you willing to pay $5-$40k per month to lock them up so they have no other clietns during that time?

I understand your perspective, and can appreciate your position as a Buyer with these types of concerns. I can offer you some reassurances from my end of things as an agent. The truth is, no Buyer is the same. They all have different motives, resources and limits. So, even when I represent more than 1 on the same property (and yes, it does happen), I work with them the same way as I would if they were different properties. I give them the comps, I make my suggestions for offer price based on THEIR specific situation (loan, down payment, desired payment, etc) and we build the offer from there. Since each Buyer is different with different needs, it is possible to have 2 similar offers that are presented, but 1 will win out because the elements in the offer, which are specific to the Buyer. For example..... loan was FHA over conventional (which the Buyer had to have), or 1 asked for closing costs and the other didn't (again, based on need), or 1 could close in 30 days, but the other required 45 days.

Does that make sense?

So, it may seem like there would be conflicts, but in reality, because Buyers have their own individual needs that convey into any offer, it really doesn't present an issue with the same Realtor presenting their offers on the same property.

Speaking briefly to your comment about a listing agent who would "cause a bidding war" between Buyers, this CAN be somewhat true. Remember, the listing agent represents the SELLER, and the SELLER's best interests. JUST because a Buyer comes in without an agent, doesn't mean that the listing agent automatically becomes a dual agent. The agent can continue to represent the Seller, and the Buyer would be unrepresented, similarly to how a FSBO represents themselves in a transaction with a Buyer who has a Realtor. So, it works both ways. The key is disclosure. If a dual agency is going to be established, it needs to be disclosed to all parties involved, and each party would need to agree in writing to the new relationship, and limitations that come with it.

When you are dealing with a Realtor of integrity, none of these situations present issues.  I would like to be able to tell you that every agent out there is ethical and runs their business with integrity, but we both know that isn't always the case.  At the very least, make sure you are working with a Realtor, not just an agent (there IS a difference!).  Realtors agree to be held to a higher standard (and disciplined as such as well). 

Does that make sense?

It really depends on your market, and what your state allows.

The market could be so hot that many Buyers are clammering for the same inventory.  It is not realistic to think that a Realtor would only have 1 client at a time, so, of course they could run into a situation where they have more than 1 client putting offers in on a property.  

BTW, this is NOT considered dual agency.  Dual agency is when the Realtor represents both the Buyer and the Seller in the same transaction.  

NOW, if THAT is what you are talking about (a listing agent who represents the Seller, and then brings in a Buyer that they are working with), then it is required that the Realtor have both the Seller and potential Buyer sign a dual agency agreement in which they both are aware of the dual representation AND they understand that their representation will be somewhat limited because the agent cannot divulge secrets that each of them has told the Realtor about the other....IE "Buyer will pay $5K more than the offer price.....or Seller is willing to accept $XXX amount for the property".