All Forum Posts by: Ron Drake

@Margo Ochoa what ever you decide in the way of a listing agreement and commission, mkae sure it specifies what the Selling Agent (Buyers Agent) will receive. If you enter into an agreement that doesn't specify a percentage then the Listing Agent could advertise a Coop on the MLS for a low percentage which would potentially bring you less showings and lower sales price and keep a higher percentage for himself. For example 1.5 - 2% for the buyers agent.

Sounds like a bad plan for you. Tell them to sell it if they don't want it anymore.

If you can't cover the space rent, what will you do if it goes vacant? It needs some fixing up and you are 300 miles away, how would you accomplish this and again, money?

@Matthew Ware I would just hate to see you lose what you have that's all. Tapping the equity means either selling and buying more properties elsewhere or refinancing and pulling cash out which may be hard for you to qualify for. 

Personally if it were me and I just had to make more $$ than the cash flow from these 2 free and clear properties provide, then I would look at your own backyard. 

I'm guessing that the 2 properties have a low property tax base as well and you should be bringing in $4,000+ / month. Are they houses or condos? Do you know if you are getting the most rent that you can?

My advice is to go slowly. Your monthly income should go up significantly with the addition of the 2 properties. Do you really need to leverage into more passive income, or are you better off just collecting rents on the 2 properties and continuing to work at your current job? 

 As Rick pointed out above it can be shark invested waters with lots willing to take your money with little in return. To leverage you will need to sell these and buy more properties with a supposedly higher cash flow or take out loans and try to buy more. Lots of expenses either way that may make it difficult to do better than you are right now.

If you have the chance you DON'T want to miss this. 

Without Ward I would have made many unnecessary and costly mistakes.

The Guaranteed Sales Program is generally used to get the listing not necessarily to buy the house. Part of the program involves built in price reductions which, in a hot market will almost guarantee a sale if priced right.

Have your tenant check with a lender to see if they qualify for a mortgage and have a sufficient down payment to buy the property from you.

Not sure why you would sell to them and keep their payments low unless you are just trying to mostly get off the hook from paying the HOA dues, insurance and property taxes.

If that is the case ask them how they would feel about their monthly going up by $900 or $1,000/ month. If they can't afford that then either continue on without cash flow being happy with the appreciation you have gained or sell and take your profit now.

@Ford Smith I agree with @Micah Redden sounds like you need to make more money. Carrying $2,000/ month payments for student loan debt is something that probably seemed like a good idea at the time. It may have allowed you both to go to school without working but is now a burden you are forced to carry.

If you are working in sales and not making a substantial income, figure out how you can. Since you are interested in Real Estate why not go into Residential Real Estate Sales. Get your real estate license and sell houses. If you work really hard you can make a great income. Good luck.

I took a quick look and it may be priced too high. Didn't really get into location in the complex but that could be a concern as well.

why don't you post the address? @Bud Dwyer Maybe someone on here has a Buyer. We can also give you our take on price to see if your expectations are realistic or if it may be better to put a tenant back in the property.