So let’s say that that LP puts in 95% of the equity, GP puts in 5%, they each get 8% pref on their equity, after that a 70/30 split investor/sponsor of the next 12% in returns, then 60/40 in favor of the sponsor thereafter.What would you think is a fair split of the capital appreciation of the asset? Someone was proposing to me a 50/50 split of that. Does that seem reasonable?In the prior transaction given to me, pre-sale split of equity returns were roughly 75/25, and they want a 50/50 split on sale, maybe moving it to like 72/28, but they also said on future deals they would ideally like 50% of all the returns, which seems outrageous. I would think max that an LP would go for is an overall 70/30 split.Thoughts, experience?
I know that it is possible to offer a rebate of my commission to the purchaser at closing as long as it is disclosed on the HUD in the form of (Price reduction, builder upgrades, closing costs, down payment if Lender allows, etc), but how would it work outside of closing? Let’s say the purchaser just wants a check after closing. Would it have to be worded on the HUD as credit paid outside of closing? Would the Broker pay the agent their full commission, and then the Agent would just simply write a check to the Purchaser? Or does the Broker have to issue the Rebate check to the Purchaser? Any advice would be helpful. State is GA, by the way.
We just had an offer accepted on a home in Indianapolis, IN. We just got the following quote for a home inspection:Inspection (2000-2999 sq.ft.) $397.00Termite with full Inspection $60.00Radon with full inspection $95.00Well and Septic Inspection with Bacterial Water Sample $190.00Pool Inspection (with full inspection) $140.00Separate structure Inspection (under 1000′ w/ full home inspection) $125.00Total $1,007.00I can’t really think of anything I’d cut out to make it cheaper, though I think the well inspection with the water sample is likely going to return some bacteria. I’ve read that most wells have bacteria and the report shows that. I understand it’s the type of bacteria that matters. I am curious if I should have gone with the pool inspection option vs. seeking out a pool maintenance company to inspect it. Has anyone had experience with that and have an opinion?Thanks
Yet another interesting headline in the world of health and well-being. Noxious Mix of Smoke And Pollution Stresses Health In California’s Heartland
Low-income residents living near highways and agricultural and industrial zones are getting hit with a “double whammy” as wildfire smoke drifts to areas where the air is often polluted already.
I am 20 years old and a junior in college in St Louis (graduating May 2020). I have about $5000 in my bank account and about $4300 more invested in stocks. I just started a new job and I make about $2000 a month, with rent of about $550 plus gas, food, fun money etc. So I can probably save about $1000 a month. I’m really interested in rental properties. I’m from Springfield, IL which is a decent size town only an hour and a half away from me, and housing is affordable there, so I’d probably want to begin there. How did you guys start with rental properties? Is there any opportunity for a young person in my situation to get some kind of rental property or should I wait til I’m out of college and have more money saved up?
My parents are gifting me their home, it is fully paid off and is not being used as collateral for anything, is a Quit Claim Deed the right document?Basically, I wish to avoid as many taxes as possible and end up with the title under my name.Thanks for all your help!
Hi everyone!My SO and I were given the opportunity to buy the house we have been renting for the past 4 years (North Texas Area). It’s a two story A-Frame that is 1,008 Sq. Ft. with one proper bedroom, one small bath, a kitchenette, living area, large laundry room and large den upstairs that runs along the length of the house. The area we are living in now is in close proximity to both of our families, a two-minute walk to the lake with a boat dock and a 15-minute drive to town. The town has also been growing rapidly and the average home price in the are is $250,000.We love this house but are uncertain how it will favor on the market in the future since it is so small. We mostly have families who live in the area and a one bedroom wouldn’t cut it. It also has a spiral staircase so I don’t think a retired couple can navigate it with ease if they buy it as a vacation home.This is our landlady’s only rental home and she said she has had awful luck with tenants and we are the first renters that have not trashed the place and pay rent on time. So basically we leave and she sells, we go month to month and continue to rent from her, or we buy the place from her. Rent in the area is bananas, even trailer homes in crappy neighborhoods go for $1,200/month, which is why we are thinking buying would be the best option.Both the landlady and the property manager have told us she would give us a great deal as we have paid over $30,000 in rent the last 4 years. The house and lot were appraised at $58,000 last year which is VERY much affordable and would give us enough financial room to do renovations (we make AVG $60,000/year combined).We are just at a lost on were to go from here. There are structural issues regarding the outside stairs and balcony that was estimated at $8,000 to repair, but other than that the house is in pretty sound condition. The property manager says she is willing to help with filing paperwork which she says would save us on closing cost, but I have no idea how that works or if we can trust her to have our interest at heart.My main questions are:-Do we need to hire our own inspector if we are approved for USDA loan?-Will anyone finance a house that is $50,000 or less?-Should we use a separate realtor? Or can we trust her property manager to not do us dirty?-How realistic would it be to expand on the home?I appreciate any help or advice I can get! :)
My parents were thinking of selling their house Spring 2019. They mentioned this to their neighbors and one neighbor’s friend (Josh) came to see the house, with his long-time realtor, and Josh put in an offer. My parents are wondering how much to pay Josh’s realtor (if anything). My parents had not yet signed with any realtors.Is it likely that Josh has an agreement with his realtor to pay him 2.5%-3%, so if my parents refuse, Josh will have to pay it? Thanks.
I own a house that I lived in for 2 years but following a bad break up I couldn’t stand living there anymore. My realtor that I thought of as a friend told me I could get between 365k and 385k for my house (he was also supposed to be an expert on the area my house is in). He said if i priced it at 365k I would likely receive multiple offers within a week. So I decided to price it there since I bought the house for 325k that seemed fine for me even if i had to help with closing costs of the buyer.At the same time I saw a loft in the art district that I really liked and being a bachelor now it felt somewhat appropriate and cool so I asked his opinion if it would be a safe bet to buy this property while getting ready to list the current house. (I had a roommate after my ex and I split and my realtor advised it would be easier if my friend moved out for showings). He said it was more than safe cause my house would sell within a week. So I put in an offer on the loft and it gets accepted.I put my house up on the market the week before 4th of July weekend because my realtor said people will be home shopping that weekend and it will be great…. However no one looks at the property because everyone is out of town. So he was wrong there.The house gets lots of viewings but no offers most stating either the floor plan isn’t for them or the price point is too high or a combination of both. He says we would stick at this price point each week we meet to discuss. After 35 days he finally says we should drop the price 5k and that “we should of dropped the price earlier”. Which honestly got my blood boiling cause I continually asked him if we should and he said no.He drops the price and does another open house one couple is interested but falls through. I go by the property a week after the open house and there is trash from the open house everywhere… he didnt even bother to clean up properly. I call him and tell him how upset at him I am and how I feel like he has continually mislead me. I’m making two mortgage payments and I have no furniture in my new place because he said my current furniture was great for staging (it was all west elm stuff) .He then tells me the market is slowing down and sends me an article. However if you read the article it says the market is slowing down because of lack of supply in the area not demand. So he cant even be bothered to read an article he sends me.I give him a couple more weeks and showings are down and I ask him to let me out of the contract because I no longer trust him. I decide to go with another realtor who advises me to post the property for rent and for sale and drop to 349k and considering my situation he will do the commission at 5% and he also says that the other realtor was way off on his 365k pricing. At this point I am 2 months on market and still no offers.Couple weeks at this price point and no offers though we came close apparently once. This realtor is now saying we are becoming stale on the market and we should push the rental front and see what happens. And relist in the spring / summer with a fresh start. After his property management fees I will be about break even.This whole journey just feels awful. I went from living in a home that just reminded me of pain constantly to living in an empty space. I feel like I can’t trust realtors that they’re not really experts and more of just used car salesmen not worth the 6% fee.How can I navigate myself out of this situation without taking a huge financial loss?TL;DR: Bad advice from realtor lead me to paying 2 mortgages with one of the properties now being stale on the market.
HiFirstly, I’m UK based.I’d like to one day buy a property in Florida as an investment/holiday home. I was thinking of Sarasota area for the longer term rental over the winter period. I also like the area and would be happy using it myself if it wasn’t rented. I’m also wondering about the Orlando area but looking on rental sites such as homeaway, there’s one hell of a lot of competition in this area and there’s a good chance I might not be able to rent it that much?Would welcome any opinions or pointers on doing it as I’m not really sure where to start.Also, a quick question – do I have to pay a realtor when buying or is that the seller? I’ve read mixed reports either way. I’m just looking at property online at the moment but of course would come across to view. Would one realtor sort out all my viewings or do you book them in with the sellers advertised?Thanks for any advice.