If you have seen some of the other information I put out on this in recent month then you know that RD no longer allows Real Estate Agent Admin fees (just like the VA). In the guidelines that had been published RD simply said it’s not an allowable fee. Good news for agents we recently found was that by saying ‘not an allowable fee’ they mean that the fee can neither be financed into the loan or paid with seller concessions, but that if the borrower paid the fee out of pocket it could be charged.
The key is in the definition of unallowable fees. What this means to you?
If the Realtor Admin Fee is charged then the borrower’s bottom line must reflect as much. Examples:
Bottom line, if you typically charge an admin fee I would throw it on there and see what happens!
Working with home buyers searching for a new primary residence is a totally different game compared to working with investors and rental property. Sure, there are similarities, but what want-to-be home owners care about is different than what an investor cares about. Frankly, for an investor, it’s all about the money and it should be. When someone purchases a rental property they are essentially running a business. If we can help them run a successful business and turn a profit they will likely come back and buy more properties.
There are lots of want-to-be investors out there and the hardest part is getting started. We are going to help unravel the maze. We will also look at long term planning. Often just knowing what needs to happen to acquire the next property and the next one after that is one of the keys to success. Owning rental property can be a great way to build wealth and we are here to help.Visit Jeremy's Blog