All Forum Posts by: Taylor Robertson

Quote from @Jonathan Greene:

Quote from @Taylor Robertson:

I've been working with an agent for a couple months now in hopes of finding my second deal. He was previously my teacher in high school, so I've had a relationship with him and I've signed a buyer's agreement with him. About a month ago a family member of mine let him know that he was going to sell his dad's house. He just wants to sell the house and use to $ to help his father with health issues, so he's willing to sell for under market value. It's worth about 175k, and he's willing to take 140k for it. The thing is he wants to sell it directly to me (FSBO) without the use of an agent to save on commissions. I'd told my agent this a few weeks ago, and my agent told me technically he is owed a 3% commission but he won't hold that against me since it's a family member and I'm starting out. I want to move forward with the purchase because it is a great deal on paper but I don't want to do my agent dirty either. I'd thought about offering 145k and allowing my agent to take a 3% comission ($4,200), use the $800 on any inspection/closing costs, and the seller walks away with 140k. That would mean the extra 5k would technically come out of my pocket, right?

Does this sound reasonable? I would be financing the property via a bank. Any thoughts would be appreciated! Thanks!

Since the agent connected you to the deal, they are entitled to a buyer side commission even if you buy direct. So, to stick to your agreement you should pay them 3 percent of the sales price at closing. If they had not found the deal or participated at all, you would not owe them anything since it was off-market and they didn't play a role.

 My apologies, I think I mistyped. My agent DID NOT connect me to this deal. A family member contacted me directly, so my agent hasn't been involved at all with this deal so far.

I've been working with an agent for a couple months now in hopes of finding my second deal. He was previously my teacher in high school, so I've had a relationship with him and I've signed a buyer's agreement with him. About a month ago a family member of mine let him know that he was going to sell his dad's house. He just wants to sell the house and use to $ to help his father with health issues, so he's willing to sell for under market value. It's worth about 175k, and he's willing to take 140k for it. The thing is he wants to sell it directly to me (FSBO) without the use of an agent to save on commissions. I'd told my agent this a few weeks ago, and my agent told me technically he is owed a 3% commission but he won't hold that against me since it's a family member and I'm starting out. I want to move forward with the purchase because it is a great deal on paper but I don't want to do my agent dirty either. I'd thought about offering 145k and allowing my agent to take a 3% comission ($4,200), use the $800 on any inspection/closing costs, and the seller walks away with 140k. That would the extra 5k would technically come out of my own pocket, right? Does this sound reasonable? I would be financing the property via a bank. Any thoughts would be appreciated! Thanks!

I've been working with an agent for a couple months now in hopes of finding my second deal. He was previously my teacher in high school, so I've had a relationship with him and I've signed a buyer's agreement with him. About a month ago a family member of mine let him know that he was going to sell his dad's house. He just wants to sell the house and use to $ to help his father with health issues, so he's willing to sell for under market value. It's worth about 175k, and he's willing to take 140k for it. The thing is he wants to sell it directly to me (FSBO) without the use of an agent to save on commissions. I'd told my agent this a few weeks ago, and my agent told me technically he is owed a 3% commission but he won't hold that against me since it's a family member and I'm starting out. I want to move forward with the purchase because it is a great deal on paper but I don't want to do my agent dirty either. I'd thought about offering 145k and allowing my agent to take a 3% comission ($4,200), use the $800 on any inspection/closing costs, and the seller walks away with 140k. That would mean the extra 5k would technically come out of my pocket, right?

Does this sound reasonable? I would be financing the property via a bank. Any thoughts would be appreciated! Thanks!

There is a SFH my relative is selling at auction due to personal life circumstances. They said they would sell me to directly if I wanted the house. They're hoping to get 150k for it, but sound willing to take less. In its current condition, I believe it would appraise for 160-170 and after updating the house cosmetically, probably 180 or more if I had to guess.

If I’m able to get an offer accepted at below 150, say 130 or 140, and put 20% down, would I be able to pull my money out of it @ the 80% after the appraisal? I may be totally off here. Any suggestions on how to best structure the deal in order to put down less cash or be able to take the cash out if I buy it low enough? It would be a long term rental. The home needs about 10k worth of work.

There is a SFH my relative is selling at auction due to personal life circumstances. They said they would sell me to directly if I wanted the house. They're hoping to get 150k for it, but sound willing to take less. In its current condition, I believe it would appraise for 160-170 and after updating the house cosmetically, probably 180 or more if I had to guess.

If I’m able to get an offer accepted at below 150, say 130 or 140, and put 20% down, would I be able to pull my money out of it @ the 80% after the appraisal? I may be totally off here. Any suggestions on how to best structure the deal in order to put down less cash or be able to take the cash out if I buy it low enough? It would be a long term rental. The home needs about 10k worth of work. 

As the title says, my tent ant contacted me today with this question. He lives in the duplex I own next to me…. She’s stayed over at his place a couple times a week for the past few months. She would bring her dog as well. My tentant’s lease ends at the end of may. I charge him $25/month for his dog. He’s my first tenant so I have not dealt with this issue yet. It’s not really even an issue, he’s been a quality tenant. How do you think I should proceed? Adding her to the current lease and charging for the additional pet rent? Background check needed? Any advice would be appreciated. Thanks

I understand how raising $ via hard money/private $ is paid back on flips through the profits made. However, I am wanting be to a buy and hold investor. For example, I have a potential deal coming up for a SFH. Regarding the down payment and rehab costs (~30k), if I were to look for outside money to fund the costs, how could I structure the deal? I have a family member who's interested in partnering, but if the property cashflows a couple hundred dollars per month and we split it, the ROI in very poor for my family member. I know that equity is another option, but since I plan on holding long term, a profit via sale would not happen for many years. I'm just not seeing how to effectively scale using outside % from a buy and hold perspective. Any suggestions would be greatly appreciated. Thanks!

Quote from @Ryan Davies:

Sub to or seller finance would probably be best on this deal. You just need to solve their problem when selling(do they need cash at the table? If so, how much?). You could create a win-win where you are even paying more for the property. 

Thanks! My confusion is, if she still owes $ on her mortgage, how could I sub to or seller finance? If she has 20k equity in the property that she wants regardless, would I need to pay her that and take over the mortgage from there? 

Thank you for the response! To follow up, do you mean subject to OR a hard money loan? Subject to essentially means I take over the remaining loan right? And hope the bank doesn’t call the loan due? 

With a hard money lender, could you go into a little bit more detail on what you mean by buying them out? I know she wants the 20k in equity, I’m not sure how I would get that to her, especially in a subject to when I take over the loan. Am I missing something? Thank you again for any help! 

I'm pretty new to REI. I did my first deal six months ago on a duplex house hack that's gone great so far. I'm eager to do more deals but capital is my biggest issue.

I was notified today of a family member of mine who is going to be forced to sell due to health & financial issues. Based on what I was told she wants to sell for, it appears to be a great deal on the surface. It would need about 10k of rehab to be rent ready— she wants to get between 70-90k out of it and Based on market research, it would rent for 1200-1300, so well over 1% as well as sell on the market in the 150k range. I’m very interested but couldn’t buy it traditionally for 25% down because I simply don’t have the capital after expending mine earlier this year. I thought seller financing would be a great idea. I just have no idea how to go about that. Also, she still owes $66k on the mortgage so I’m not even sure if it’s possible to do seller financing and, she needs the equity she has in the property upon selling.

My question is, is seller financing even an option if she still has a note on it? And if so, how should an investor proceed who lacks the experience?