empty house - Posted by Laure


#1

Posted by Laure on November 08, 1998 at 20:45:00:

Mute point. The girl can’t afford it. :frowning:


#2

empty house - Posted by Laure

Posted by Laure on November 08, 1998 at 05:48:05:

I have recently purchased 4 homes…all under construction at once ! GEEZ… I did a 1031 exchange and had to re-invest right away. So anyway, I am working on them. One has the kitchen ripped out waiting for cabinets to come in. I paid 39,000. Full market price is 59,000. I have roofed and sided the garage for 1300. and the kitchen will cost around 2500.00/ 1400 for cabinets and 900 for surprises! I should put a new central air unit in :bid at 900.00 and carpet and paint… around 1200.

Total invested 45,000
Full price offer? 59,000

I listed it already with the guy I bought it from. A full price offer would make my realtor’s expense 4100.00 and leave me with around 10k before taxes, unless I exchange again.

The ethical question: I got a letter today from a lady that lives in a not-so-affluent area… not bad, just conservative and older neighborhood. Anyway, she checked with the city, found my name and address and wrote me wanting to buy this house. Probably contract or L/O. Of course I could screw the realtor since he didn’t bring me this buyer… or I could have him work the details with her for a reduced commission. Or I could tell her to call him. I have it listed for another 6 weeks before it expires.

side note: This same realtor just brought me a home I bought for 49000 that is worth 89000 with only about 4k worth of work… re-hab almost done, just needs carpet, paint and some bathroom work. tub enclosure, vinyl, etc.

What would you guys do? I certainly don’t want to bite the hand that feeds me.


#3

Re: empty house - Posted by Redline

Posted by Redline on November 09, 1998 at 11:39:09:

Pay the commission! He sounds like he’s doing his job so a little freebie from you shouldn’t hurt. (Not to mention the fact that if he’s got an exclusvie listing he IS legally entitled).

If it really bothers you negotiate it down a little bit.

RL


#4

Re: empty house - Posted by phil fernandez

Posted by phil fernandez on November 08, 1998 at 07:36:56:

If this realtor is producing these kinds of deals for you to purchase I would pay her acommission. However if you do a lease/option or contract where you will not be getting alot of up front money I would see if the realtor would take a small amount of her commission now and the rest when the option is excercised.


#5

Re: empty house - Posted by Laure

Posted by Laure on November 08, 1998 at 12:08:59:

Thanks Phil. I’ll call realtor tomorrow and propose a note for the commission upon sale. I know the broker too, he was my first loan officer 10 years ago. He was a reo officer at a bank !

Laure