All Forum Posts by: Ryan H.

@Mike Cumbie - is that common?

I am reviewing my first buyer-broker agreement.  The compensation section says that Buyer agrees to compensate Broker as follows:

"The amount of compensation shall be 3% of gross sales price, or the compensation Broker receives from seller or seller's broker, whichever is greater. In either event, Buyer authorizes Broker to accept compensation from seller or seller's broker, which shall be credited against any compensation owed by Buyer to Broker pursuant to this Agreement."

Is this typical for an arrangement in which the Broker is representing the Buyer only?

@Tyler Bobo - so by neutral, you mean that the client would have one of your colleagues step in if they were interested in a property you had listed?

Hello, I contacted an agent about three weeks ago for assistance with locating a first rental property.  She's done a significant amount of research on my behalf.  Yesterday she sent a Disclosure/Broker Agreement for me to review and sign, to formalize our arrangement.  This revealed that she intends to represent both buyer and seller, which is not an arrangement I'd be comfortable with.  My assumption was that she representing only me (as Buyer).  How do you recommend we manage what will likely be a separation based on this misunderstanding?   I feel badly that we didn't clarify this at the outset and for all of the work she's already put in on my behalf.

Hello, I'm reviewing a property management agreement (I would be the landlord) with the following terms:

- Management fee is 10% of rent
- Charge of 15% of rent with each new tenancy.
- Landlord to pay property management group for termination (two months property management fee if property is leased, $250 cancellation fee is property is not leased).  30 days notice required.
- $50 monthly fee when property is vacant.
- 10% for rental renewals.
- Lots of other miscellaenous fees including initial clean up, property preparation, set up, marketing, insurance coordination, document duplication, re-keying, statutory agent fee, fees for evictions, etc.  Property management group may also charge tenant fees, which they would retain.

This is my first time looking at one of these agreements, but it sure feels excessive!  Thoughts?

Stupid question: if the properties I'm analyzing are showing as cash flowing as negative as -$200 per month in year one (with 25% down), should I just be steering clear?

Hello!  I bought my first owner-occupied earlier this year.  I was approved for a $112k loan.  I'm now searching for my first rental property and am speaking with a lender about financing.  My understanding is that for the same amount of financing, the income requirements will be much higher, say about $1500 per month more.  Why such a big difference for a $112k loan?   What am I missing?

Also on the lookout for opportunities in Tucson:

SFH, < $215,000, minor property distress.
I’m out of state and still learning about the most sensible neighborhoods.

@Jason D. thanks!

Hello, newbie here.  I'm reading @David Greene's BRRRR book and one of his criteria is "to be all-in at 75% of ARV". Does "all in" here imply anything about it being cash or financed?