We will have to gut and redo everything (electrical, plumbing, kitchen, baths, flooring, etc.).The Investment Purchase Price: $62,000Remodel Cost: $105,000Carry Time: 6 months (4 months for remodel and 2 months to list and close)Finished Product: 4 bed, 2 baths - approx. 1,900 SqFtOption 1: Flip ARV: $230,000Actual Sale Price: $211,000 (230,000 - 19,000 closing costs [2%] and RE commission [6%]) Profit: $44,000Cap Rate: 26.3% (44,000 / 167,000)Yearly Return: 52.6% (44,000 x [12mo/6mo])Option 2: Rent Estimated Monthly Rent: $2,100Annual Rent After Expenses: $17,640 (2,100 x 12mo x 0.7)Expected Return: 10.6% (17,640 / 167,000)Before PicturesFollow this post for regular updates and to see the finished home!

It just seems a bit far fetched.These guys drive their 150K Lamboginis or RR around, selling houses 15, 25 million dollars, buyers from overseas sight unseen, sending a rep to make a cash offer of 18 millions, and the two agents meet at a fancy restaurant sipping margaritas, getting up and calling their buyers, using what seems trivial and rudimentary negotiation tactics, and make 400K of commission with a snap of their fingers.Really?

I wonder if the benefits of being licensed are worth the risk of ending up in front of the commission.

That is, dig into the project that is feeding the area and research the zoning and building commission's plan on accommodating the demand.

Recognizing that whenever you speak to real estate agents or someone referring you to a builder or turnkey provider, there is almost always a commission or referral fee being paid.

I can fire the pm but the problem is the contract include a language that says if I fire the pm, I am obligated to pay the commission fee for the remainder of the lease (there are 10 months left under the current lease.)

Often, they'll work for you as well, since it lets them pocket double the commission.

At that time, March 6, the sellers countered, not in writing, dropping $4000 off, and part of that was, according to the agent, because SHE reduced her commission.

That said, use the threat of a potential lawsuit to your advantage, and try to get the seller to reimburse you for any expenses you've incurred.In addition, if you have an agent, that agent may be able to sue in order to collect their commission from the seller.Just some thoughts...again, not an attorney so there may be more options...

You'll also find that commissioned brokers get a higher sale price than discount brokers and FSBOs.