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  • January 10, 2010 at 12:23 AM #16890
    Raybyrnes
    Participant

    I finished my MBA in 06 but I remember my real estate finance professor talking about a period of time when you could get your real estate license and buy foreclosed FHA and VA homes and collect the 6% commission form the agencies. Because many of these loan notes were assumable you left with a nice chunk of change in your pocket at closing. It has been some time so I could be forgetting some of the details.
    Can one of the realtors on the board comments. Seems as though it would be favorable to find a 300 K home and potentially collect 6% for representing yourself as buyer and seller and iff you are a first time homeowner collect another 8K for purchase.

    January 10, 2010 at 8:10 AM #500686
    SD Realtor
    Participant

    Self representation is possible but most brokers will not allow it due to liability. Also it doesn’t matter if it is VA, FHA, lender owned, or a private sale, in California the seller pays the commission. So yes if the home is owned by the VA or FHA or FNMA or HUD or Wells Fargo or whoever the commission gets paid. However, once more I don’t know of any large brokerages where a broker would allow that.

    Also I guess to me your point is moot because this would apply for any home for anybody. Getting a license isn’t rocket science so anyone can do it. However when they do it the reality of the situation will show them that if it happens it is very very very rare.

    January 10, 2010 at 8:10 AM #500836
    SD Realtor
    Participant

    Self representation is possible but most brokers will not allow it due to liability. Also it doesn’t matter if it is VA, FHA, lender owned, or a private sale, in California the seller pays the commission. So yes if the home is owned by the VA or FHA or FNMA or HUD or Wells Fargo or whoever the commission gets paid. However, once more I don’t know of any large brokerages where a broker would allow that.

    Also I guess to me your point is moot because this would apply for any home for anybody. Getting a license isn’t rocket science so anyone can do it. However when they do it the reality of the situation will show them that if it happens it is very very very rare.

    January 10, 2010 at 8:10 AM #501229
    SD Realtor
    Participant

    Self representation is possible but most brokers will not allow it due to liability. Also it doesn’t matter if it is VA, FHA, lender owned, or a private sale, in California the seller pays the commission. So yes if the home is owned by the VA or FHA or FNMA or HUD or Wells Fargo or whoever the commission gets paid. However, once more I don’t know of any large brokerages where a broker would allow that.

    Also I guess to me your point is moot because this would apply for any home for anybody. Getting a license isn’t rocket science so anyone can do it. However when they do it the reality of the situation will show them that if it happens it is very very very rare.

    January 10, 2010 at 8:10 AM #501324
    SD Realtor
    Participant

    Self representation is possible but most brokers will not allow it due to liability. Also it doesn’t matter if it is VA, FHA, lender owned, or a private sale, in California the seller pays the commission. So yes if the home is owned by the VA or FHA or FNMA or HUD or Wells Fargo or whoever the commission gets paid. However, once more I don’t know of any large brokerages where a broker would allow that.

    Also I guess to me your point is moot because this would apply for any home for anybody. Getting a license isn’t rocket science so anyone can do it. However when they do it the reality of the situation will show them that if it happens it is very very very rare.

    January 10, 2010 at 8:10 AM #501570
    SD Realtor
    Participant

    Self representation is possible but most brokers will not allow it due to liability. Also it doesn’t matter if it is VA, FHA, lender owned, or a private sale, in California the seller pays the commission. So yes if the home is owned by the VA or FHA or FNMA or HUD or Wells Fargo or whoever the commission gets paid. However, once more I don’t know of any large brokerages where a broker would allow that.

    Also I guess to me your point is moot because this would apply for any home for anybody. Getting a license isn’t rocket science so anyone can do it. However when they do it the reality of the situation will show them that if it happens it is very very very rare.

    January 10, 2010 at 9:05 AM #500691
    Raybyrnes
    Participant

    SD Realtor
    Couldn’t agree with you more with respect to getting a license. I guess my thought here was “Are we seeing more flips because there are these assumable mortgages out there that provide immediate upfront cash and potentially 0 out of pocket if a mortgage is being assumed. If interest rates spike by the end of the year that might create an environment where a low interest mortgage not may be favorable.

    January 10, 2010 at 9:05 AM #500841
    Raybyrnes
    Participant

    SD Realtor
    Couldn’t agree with you more with respect to getting a license. I guess my thought here was “Are we seeing more flips because there are these assumable mortgages out there that provide immediate upfront cash and potentially 0 out of pocket if a mortgage is being assumed. If interest rates spike by the end of the year that might create an environment where a low interest mortgage not may be favorable.

    January 10, 2010 at 9:05 AM #501234
    Raybyrnes
    Participant

    SD Realtor
    Couldn’t agree with you more with respect to getting a license. I guess my thought here was “Are we seeing more flips because there are these assumable mortgages out there that provide immediate upfront cash and potentially 0 out of pocket if a mortgage is being assumed. If interest rates spike by the end of the year that might create an environment where a low interest mortgage not may be favorable.

    January 10, 2010 at 9:05 AM #501329
    Raybyrnes
    Participant

    SD Realtor
    Couldn’t agree with you more with respect to getting a license. I guess my thought here was “Are we seeing more flips because there are these assumable mortgages out there that provide immediate upfront cash and potentially 0 out of pocket if a mortgage is being assumed. If interest rates spike by the end of the year that might create an environment where a low interest mortgage not may be favorable.

    January 10, 2010 at 9:05 AM #501575
    Raybyrnes
    Participant

    SD Realtor
    Couldn’t agree with you more with respect to getting a license. I guess my thought here was “Are we seeing more flips because there are these assumable mortgages out there that provide immediate upfront cash and potentially 0 out of pocket if a mortgage is being assumed. If interest rates spike by the end of the year that might create an environment where a low interest mortgage not may be favorable.

    January 10, 2010 at 11:49 PM #500904
    SD Realtor
    Participant

    No we are seeing more flips because there is a TON of money on the sidelines and the opportunity is staggering while the alternatives are few. You can get 1% in a CD, or you can invest in an already overvalued and overbought equities market. Conversely the re market is so thoroughly manipulated and short on inventory that you can take advantage of it if you have the resources and risk tolerance. Even with that there is spec bubble going on that is making flipping dangerous. I think there is a little bit of opportunity left but not much. It will rollover this year I think unless the govt continues to roil the market.

    Once interest rates rise and the market craters most of the flippers will be long gone simply because there will be alternate places to park money for a decent return.

    January 10, 2010 at 11:49 PM #501054
    SD Realtor
    Participant

    No we are seeing more flips because there is a TON of money on the sidelines and the opportunity is staggering while the alternatives are few. You can get 1% in a CD, or you can invest in an already overvalued and overbought equities market. Conversely the re market is so thoroughly manipulated and short on inventory that you can take advantage of it if you have the resources and risk tolerance. Even with that there is spec bubble going on that is making flipping dangerous. I think there is a little bit of opportunity left but not much. It will rollover this year I think unless the govt continues to roil the market.

    Once interest rates rise and the market craters most of the flippers will be long gone simply because there will be alternate places to park money for a decent return.

    January 10, 2010 at 11:49 PM #501447
    SD Realtor
    Participant

    No we are seeing more flips because there is a TON of money on the sidelines and the opportunity is staggering while the alternatives are few. You can get 1% in a CD, or you can invest in an already overvalued and overbought equities market. Conversely the re market is so thoroughly manipulated and short on inventory that you can take advantage of it if you have the resources and risk tolerance. Even with that there is spec bubble going on that is making flipping dangerous. I think there is a little bit of opportunity left but not much. It will rollover this year I think unless the govt continues to roil the market.

    Once interest rates rise and the market craters most of the flippers will be long gone simply because there will be alternate places to park money for a decent return.

    January 10, 2010 at 11:49 PM #501542
    SD Realtor
    Participant

    No we are seeing more flips because there is a TON of money on the sidelines and the opportunity is staggering while the alternatives are few. You can get 1% in a CD, or you can invest in an already overvalued and overbought equities market. Conversely the re market is so thoroughly manipulated and short on inventory that you can take advantage of it if you have the resources and risk tolerance. Even with that there is spec bubble going on that is making flipping dangerous. I think there is a little bit of opportunity left but not much. It will rollover this year I think unless the govt continues to roil the market.

    Once interest rates rise and the market craters most of the flippers will be long gone simply because there will be alternate places to park money for a decent return.

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