met with a real estate attorney the other day, he said:
You can’t have a seller pay your share of closing costs. In other states that can be done and even common, but here in New York, it won’t happen.
You’ll never find a bank that will allow you, the buyer, to assume a seller’s mortgage under any circumstance.
When you make an offer, you sign a binder, subject to your attorney’s approval. You pay an engineer to look at the property before signing a contract - no contract’s are written that make it subject to an inspection, this happens before you sign contract.
You must sign the “boiler plate” sales contract from the board of realtors if you buy a property that has a realtor representing seller. You don’t add anything to the contract.
OKAY,
I say that alot of that sounds like a bunch of CRAP! Anyone from NY here know about the real estate market on LI? It just sounds like realtors and attorney’s get in the way here…ALOT…
Talk to some local mortgage brokers in NY about closing cost credits, they are the ones doing the mortgages not the attorney… Any contract can have addendums added to it, thats what a contract is…
I have heard banks in NY want buyers to have 5% but again…its all BS…people are buying 100% still…Find a good mortgage broker and he will set up the rest of your power team thru referrals…
Oh WTF is a word …i have seen it in the subway before…y’all all know tad…
1 thing about a successful power team is each member needs to be able to work together in there specific duty.
Your mortgage broker if he deals with investors (find one that does)will definitely know some realtors who understand how investors work for buying properties and knows what the word CASHFLOW means.
The mortgage broker if local or the realtor will definetly have a title co they perfer to deal with… So they come on your team…
Both realtor and title co will know lawyers who can review contracts, particularly the title co (they have in=house lawyer)…
They are the basic people…You need to ask each person for referrals. Needa CPA…ask the mortgage broker who is an investor as well who does his taxes and checks over his contracts when needed.
Need a GC…ask one of your memebers if they do rehabs or can refer you to someone who does many rehabs but contracts out the work…
see as you get new people on your team…you need to ask them for referals for others on the team…
Remember they all work for you since no one gets paid unless you close the deal…but they need to bring you the deal and get the mechanics worked out…realtor finds it, mortgage broker gets financing in place, title co handles the paperwork for closing, GC fixes it, accountant does taxes…etc,
so costs will look like this after the deal is found:
Realtor - 3%
Mortgage Broker 3%
GC - God only knows.
I’m just struggling with how these costs will impact MY profits. I get the property, but I give away much of my profit to these 3 above.
I’m not saying that they are not needed. Evidently they are, especially in my market here on LI.
I should really get my Realtor license. It just keeps popping out at me.
My thing is this. You’re going to tell me, that let’s say a VERY successful Mortgage Broker or Realtor or GC, will do their job for a living, building a cash portfolio, living in nice houses and driving a nice car, buying nice suits, but
does not know that Assets that generate cash flow are the keys to becoming rich?
It just doesn’t make any sense. To me, I just can’t figure that out. Realtors, GC’s and MB’s that are investors themselves makes sense to me. Other than that, it just baffles my my mind.
Being a member of a Corp or LLC that holds real estate just seems like a no brainer. Whether you’re an active member or not.