Monthly Archives: May 2018

Co-op is offering chance to buy apartments

I own a studio co-op in an apartment complex right outside New York City. I've owned it for 5 years and am currently renting out to a tenant. Renting it for $1,200 per month and my fixed monthly costs are $375 so it's a nice little source of income.

I received a letter that the co-op is offering the chance to buy some "renovated and ready-for-sale", tenant-occupied apartments in the complex. Has to be bought in cash and buyer would have to pay closing costs. I've included a link to the details of all of the units for sale…

Does this seem like a wise investment? Has anyone ever heard of a co-op doing this? Why would they be selling all of these? How much above the "Minimum Bid Price" makes sense?

https://imgur.com/a/KiBNbi9

The only fixed costs is the monthly maintenance (this includes property taxes).

Currently married and live in an apartment 10 minutes away, no kids. Don't need the money anytime soon.

Any feedback would be appreciated!

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California – 5 bed / 3 ba, $850k “It has become a common practice to allow the seller to stay in the property after closing rent free.”

Making an offer on a pretty decent house in my same neighborhood. My agent in writing the offer, tells me this:

"I would like to note that the seller’s agent told me that the seller would like a 2 week rent back after closing. You will see the “Seller License to Remain in Possession Addendum” on page xx of the attachment. It has become a common practice to allow the seller to stay in the property after closing rent free. This also makes your offer look great against other offers because a lot of buyers do not include this in their initial paperwork. I do request that the seller provide a $1,000 security deposit held in escrow for peace of mind that the property is in the same condition as when you first saw it. Please let me know if you have any questions."

I wrote back that I would be happy to extend COE 15 or 30 days for this guy to find a place to live but I was not crazy about a rent-back… furthermore, if I did consider a rentback, there is no chance it would be for $0.

Am I crazy? Is this really common place?

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What’s the difference between “prepaids” and “initial escrow payment at closing” on loan statement (US-OH)?

I am trying to understand the loan estimate sheet. There's two sections that list prepaying for insurance and property taxes. I'm confused because it seems like it's saying the same thing twice, hoping someone can help explain.

Here's the two sections:

F. Prepaids

  • 12 months home insurance – $1200
  • prepaid interest – $506
  • 12 months property taxes – $3957

and then in the next section, it lists

G. Initial escrow payment at closing

  • Homeowner's insurance for 3 months

  • Property taxes for 3 months

So after closing would I not have to pay insurance and property taxes for 1 year, 3 months? Or is it double charging for some reason? Since the totals for those sections are added together on the estimate.

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$20K difference between identical floor plans. How does this impact marketing/selling? (OLY, WA)

Our realtor is recommending a price of $359K for our house. However, one of our comps is a block over and listed for $379K. It is the same exact floor plan. They have two upgrades we didn't take and we have two they didn't take. To me – that is a huge price difference and sends the message that something is wrong with our house. Then, the greedy side of me says, if they get $379K and I took $359K I've just tossed 20K to the wind.

So tell me, if you saw two identical houses listed with a $20K price difference, what would you think? You are getting a good deal from motivated sellers or something is wrong with the house?

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Does “as-is” mean cash only?

Been looking at houses and have been avoiding ones with "as-is" in the description because I can't do cash only. Should I not be so fast to disregard them or are the terms pretty much synonymous?

In my mind currently if it's "as-is" it's going in the no pile. Is that inheritly wrong?

Edit: Northern Oregon and Southern Washington because I haven't decided on where to live for the next part of my life and the bot is insisting that I tell y'all.

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Buying Apartment with Help from Parents

I'm a 19 year old college student looking to buy my first rental property. Everyone says to start young and this is something I'm interested in so I've been looking into it a lot. My parents are willing to help me finance the purchase, and I'm wondering how this works so that I technically own the property as well and potentially build good credit in the process. Anyone have experience with this sort of thing? The apartment would be in Midtown Atlanta.

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First time homebuyer (NEW YORK)

The house used to be a foreclosure, however it isn't your traditional foreclosure because the bank currently owns it. About to sign contract, I know I need to get an inspector. My lawyer told me there isn't much leeway with banks but the banks broker said if there is anything wrong with the house that we can "figure something out",,,, Does this mean price can still be negotiated if something is found?

What are things I need to worry about? Questions I need to ask? Things to look for? The house looks great I have been in it twice.

House was built in 2006, all the mechanics are in working order and have been in house since its inception. A good Friend of mine lives 3 houses down. He has the same layout and same build. His house was bought for 490k in 2014. The house next door to him ( 2 houses from me) just sold for 675k, again same build and layout.

I appreciate any help as I have done by due diligence just trying to make sure I don't miss anything. Below are the details. THANK YOU!

Purchase Price: 605,000 Mortgage Amt: 544,500 Loan term 360 Interest rate 4.5% Down Payment: 60,500 Principal & interest 2758.91 Estimated Monthly Payment 3528.28

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Does my request for a raise seem justified? ( Acquisitions Manager Real Estate)

Hello

I am in the process of negotiating my pay at a small family business.

I work as an acquisitions manager at a real estate investment company. I also handle the liquidation and marketing.

Daily roles include:

Prospecting

Identifying Opportunities

Setting appointments

Closing the sale via telephone

Acting as buyer’s agent for said company till sale is closed

This is what a normal day looks 9-530

Pay

Current Pay per closed sale on the buy side 2% of the purchase price typically <100,000 home sale price

There is also about a day or two a week I am working with our marketing company to rearrange our targeted lists. Identifying new local markets to mail to, coming up with new ideas or stream lining what we already have.

Current pay for marketing related activities 20.00 hr

Less incentive to do this as I have a lot of people to call with the current marketing. Obviously I could improve things that add to my own bottom line but I am strictly commission at the moment and don’t like wasting my time.

Sales agent

5% total sale price split between my self and CO OP broker. Currently on a 70-30 split.

This is fine really no complaints but they have been buying more rentals (5 of the last 7) and that hurts my bottom line.

I have helped them buy 7 new houses this way in the last 3 months. The total projected equity is 210,000 with 5 currently operating as rentals.

Salary I want and Why

I am currently an independent contractor with no benefits

I am going to be speaking with the owner about putting me on salary of 40,000 and 2% per deal closed. I would accept 35k and 1.5% per deal closed up front.

If all 7 of the houses they bought were flips I would not feel as bad right now. But knowing I have no real pay days save 500k under contract right now makes me really anxious and with my partner and I starting to think about a child and what not I am looking for a better situation.

Other relative information

Current cost of marketing to company 2k month

I work really hard at this current role and I am at a point in my life where I need more stability and room to grow. This month of may is the first month we have bought nothing ( 2 deals fell apart due to lawyers advising clients on value) that means I worked feverishly for 160 hrs for literally nothing save a few hours on marketing.

I would like to find a similar sales role but am open to sales in a different industry as well.

Does my pay seem to be about right?

TLDR:

Increased sales by a lot current equity projection is 210,000 I just had my first month of no sales and feel like I want to find a role with a base salary and commission.

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