Posted by brandoncbsre on July 23, 2007 at 14:31:49:
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10% commission allowed??? - Posted by brandoncbsre
Posted by brandoncbsre on July 21, 2007 at 11:47:50:
I am a real estate sales agent and part-owner (20%) of the office I work out of. I have recently bought and renovated my first property. It is a downtown commercial building that I lease to our real estate office. I am currently looking for my next investment. I am thinking maybe a duplex/triplex/fourplex so that I could get decent 90% LTV financing. If I could get the owner to agree to pay me a 10% commission would the mortgage company have a problem with it. I would not be using it as my downpayment. My thinking is after I put 10% down and get the seller to pay closing costs then I would only have 4% in the deal after I get my commisson (we split 60/40).
Re: 10% commission allowed??? - Posted by Ben Carmona
Posted by Ben Carmona on July 21, 2007 at 15:58:30:
Lenders typically don’t dictate how much you can earn from the sale of a property. Since you’re not using it within the loan it shouldn’t be a big deal. Don’t forget too that you can also have the seller cover 2-3% in closing costs.
Ben Carmona
Re: 10% commission allowed??? - Posted by Parsa Sepahi
Posted by Parsa Sepahi on July 21, 2007 at 15:30:33:
Conventional lenders allow a max of 3% from any seller
Re: 10% commission allowed??? - Posted by BTI
Posted by BTI on July 21, 2007 at 21:27:27:
Parsa
So your not aware of any sellers selling to a buyer using conventional financing that paid the broker involved a commission greater then 3%.
So when I charge my sellers a 6 or 7% commission I better put no conventional financing allowed in the MLS remarks section from now on.
Thanks for letting me know I’ve been doing it wrong for oh so long. Or maybe I should drop my brokerage fee down to 3% from now on, because I wouldn’t want to confuse any lenders.
Now that I had my fun, your confusing apples and oranges, commissions, no matter what the rate is, are not classified as seller assistance.
BTI
Re: 10% commission allowed??? - Posted by christopher w
Posted by christopher w on July 22, 2007 at 10:56:02:
BTI,
Your statement is not entirely true. If any of your commission is given to a prospective buyer it as classified in the same category as seller assistance; it falls under the category of interested party assistance. So if the lender has a limit of 3% assistance it does not matter if you are making 50% commision you could only give 3% to your buyer.