Looking for advice from seasoned flippers!

Bird Dogs, Wholesaling
1

We are looking at a home in an upscale neighborhood that is currently owned by the bank - I think we can get the home for 75,000 under the comps.

We are looking at our holding costs and fees and want to be sure we haven’t forgotten anything

There will not be any debt service on the property.

but we will have taxes accruing, HOA fees, Utilities, landscape maintenance, and a small amount of rehab - under 1500.00.

The area we need your info on is fees.
We don’t typically have to pay realtor fees etc as we buy mostly foreclosures.

The house is currently listed by one agent/broker
Another agent showed us the property.
How is the initial fees split up?

When we re-list and sell again - I’m assuming we get hit again with fees.

Are there creative deals that you all have worked with realtors.

I want to be sure we have accounted for the majority of fees that we will be responsible for. Or any other holding costs that we haven’t accounted for?

Any advice?

Thanks!

2

Howdy Texasinvestor:

The fees are built into the price when you buy. If the listing agent is a full service agent with no discounts they will get 3 to 4% of the sales price and offer in the MLS agreement to the selling agent another 3 to 4% of the sales price. This is built into the MLS system. My HML is an agent and helps me list my property that I resell for a flat fee of $400 and then we have to pay the agency that brings the buyer a 3 to 4% fee and any bonus we may sweeten the deal with. This is a special deal but there are other discount Realtors that will list the property in the MLS for 1% or less.

When comparing comps check the days the properties were available until sold and closed and this will give you an idea how long it may take you to resell and help you figure the carrying costs. You may want to help the buyer pay some of their closing costs as well.