There are good and bad Real Estate companies that are out there on the web. This blog is to give you some insight on how to know exactly what your real estate company makes on each transaction you purchase through them.
I will disclose what I make on each transaction...my commission from the seller and that is it. If I buy homes myself then the markup must make sense for the client and it is always disclosed. Getting a full disclosure from the company your buying the home from, is as important as the getting disclosures on the home you are purchasing.
When a company is selling you a home for $100,000, you need to know how they are making their money. Most of these companies have a lot of overhead. I worked with one company in northern California brag about how much they where paying a person to watch their construction. That is overhead and someone has to pay for that......
In our company we have contractors we use and we never add a mark up on the construction. I have seen companies that charge as much as $4,000 a home markup that has to be paid to them. They do that through the construction companies and it adds to your bottom line and cost. Others add it through their service fees and I have seen as much as $10,000+ mark up in the wholesale market.
The key is cutting your cost by using local companies that have a good tract record on getting nice properties. We buy 50-100 homes a year and do the construction, Leasing it and my wife is a real estate broker and owns the management company. Basically a one stop shop.
Most Real Estate companies that sell real homes to investors in multiple states do not have their own construction crews or property management companies. They sub it out to someone else and that can be a huge problem. Getting your rental income is the most important part of an income property.
Need income real estate, I mean really good real estate for a lot less than you think? I'm Brett ICON Agent for the last 2 years in EXP Realty call me 216-703-5740........We Get Real Estate Done!
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Thank you