All Forum Posts by: Steve K.

Was speaking to a Denver realtor about this issue here. One idea would be to find a Hard Money Lender to give you the loan that could close in 2 weeks and equal the cash offer/quick close.

My experience is that 2 points and 10% interest at least. On a $1MM loan would be $20,000 in points...but would get you your house. Then you refi with your permanent financing...take out the HML

2 Votes

Originally posted by @Derek Scruggs:

@Andrew Johnson Good point. The properties currently are grossing $1800, and all the tenants have been there at least five years. I think with $10-12K improvements they would easily gross $2,700 if I rent all three. But if I live in one that goes down to $1,800, which would cover the mortgage but not much more.

Derek, are you sure this isn't an acceptable rental profit margin for Denver?
All of the house-hackers would love to have a quadraplex wherein the rent from 3 units pays for the mortgage on 4 units. (ie. rent is 133% of the mortgage for each of 3 units). Aren't you saying you have a triplex wherein rent from 2 units pays the mortgage on 3 units??? (i.e.150% of the mortgage from each tenant). Don't you have better economics than most, aside from the uplift for AirBNB??

0 Votes

Yes, it can be valuable to be licensed.....for making your own deals more profitable.

I have a full-time career and have just been doing part-time REI for 5 years. I'm now licensed....but I will never work "retail" as a broker....just representing myself in each buy/sell.

I have good income/credit, and my day-job is demanding....so, I embark on larger fix/flips and building high-end spec homes, but I'm saving a bunch by being my own agent.

My first project 5 years ago was buying a $200k pre-forclosure (short sale) ugly duplex in a hot part of Denver. After tripling the size of each unit, essentially new homes, I sold the two halves for $1,200,000. My margin was excellent....but 2.8% went to two Buyers' agents and 2.8% went to my listing agent. These 3 agents made more ($67,000) in 1 month than my contractor made for overseeing the project for 8 months. I thought there must be a better way.

Since becoming my own agent 9 months ago, I saved/made 2.8% on each transaction:

$12,000 on buying another flip property
$42,000 on selling my $1.5MM spec home myself
$16,000 on buying my latest scraper lot

If/when you're comfortable representing yourself, it's a logical step to consider.

4 Votes

All Forum Posts by: Steve K.

Steve K. has started 0 posts and replied 263 times.

Post: All-cash offers are killing us

Post: Anyone analyzing deals for AirBnB potential?

Post: Are there benefits of becoming a RE Agent as an RE investor?