Mutual funds, the stock market and commodities like gold don’t seem to reach the heights and prospects that real estate investments have managed to acquire in the recent past. Investors from various backgrounds are turning to real estate investments more every day. This type of investment is clearly becoming the most preferred channel of capital preservation with a huge futuristic prospective gain. Unlike the stock market or gold and mutual funds, multifamily real estate investments are characterized by the potential for lower risks and larger gains.



If you are fairly new to real estate investing, or simply don’t have the time for the required research you may not want to risk investing a huge sum of money from your savings into something you are not sure about. There is a wide spectrum of real estate investments on the current market such as; flipping, buying wholesale, development, subject to investing, lease option investing, foreclosures and so on. These are all options that can potentially quickly enhance and increase your portfolio, but may not be as stable or long-term as investing in multifamily real estate or cash flow properties. The big question is, which investment is the ‘right’ one for you? Not everyone can handle or manage a real estate investment on their own, especially a multifamily or rental property; they need prudent and relevant advice from people who have gained expertise in the field of multifamily real estate investments over several years. In such a cases, you may want to seek crucial real estate investment advice from a professional real estate investment broker who deals in multifamily property.



Even with the current housing economy, rental occupancy levels in several markets are on the rise or have remained stable. Thus, investing in the right market with the right multifamily real estate property could be the key to your financial success. Even in the multifamily real estate investment market you have different options on how to handle your investment. You can either be a passive or active investor. A passive investor seeks out an investment brokerage that will assist in selecting an investment that matches that investors risk/reward ratio. The brokerage will take care of all the transactions and will most likely select a property management company to ensure the continued success of that investment. This approach is suitable for investors that are still in a career and do not have additional time to focus solely on investing. An active investor will research, search through and select an investment using their personal time and potentially limited knowledge of the market. They will have to decide which investment meets their goals and either manage the property themselves or select a property management company on their own. Depending on your risk aversion and available time, being a passive investor may align best with your financial goals and lifestyle. Either way, it may be advantageous to contact a reputable investment broker and weight out your options in more detail before making your decision.



In the end, to find a real estate investment broker, a great Commercial Real Estate Investment opportunity or if you just need Help with Retirement, Plutus Investments is available to address your questions. Please contact them with your feedback, testimonials, concerns, and questions. They can be found online at http://PlutusRE.com/

Here is an interesting Arizona real estate law scenario: A seller signs a listing agreement with a list price of $200,000. The listing broker places this $200,000 listing in the Multiple Listing Service (“MLS”). The next morning the listing broker receives, at approximately the same time, cash offers for the $200,000.00 list price from two wealthy buyers. Neither offer has any contingencies, such as for financing or a home inspection. The seller decides not to accept either offer. Both buyers and their agents are outraged.

The first question is easy: Does a seller have to accept a full-price cash offer with no contingencies? The answer is no. The advertising of home for sale at a certain price in the MLS, in a newspaper, or by any other form of advertising is simply an offer by the seller for a buyer to make an offer. A seller is never required to accept an offer from a buyer, even if the offer is at or more than the list price. Under the standard listing agreement, however, if the seller rejects both offers, the seller will be in breach of the listing agreement and obligated to pay the listing agent the commission called for in the listing agreement.

The second question is more difficult: Does the listing broker owe a co-broke commission to either or both of the buyers’ agents? Under MLS rules a listing broker generally owes a co-broke commission to any MLS member who produces a ready, willing, and able buyer at the list price (or at a price agreed to by the seller). A buyer is ready, willing, and able if the buyer can perform under the contract, and there are no material contingencies. Therefore, if the two wealthy buyers could both perform under their respective contracts, and if there are no contingencies in their contracts, both buyers’ agents should be entitled to a co-broke commission from the listing broker, even if the listing broker has to pay twice the expected co-broke commission. (As stated above, in this situation the listing broker, in turn, has a claim against the seller for the commission called for in the listing agreement.)

How often is a listing broker obligated to pay two co-broke commissions? Extremely infrequently. The reason is that rarely does an offer, even a full-price offer, not have a material contingency. The Arizona courts have ruled that a financing contingency is a material contingency. A home inspection is probably a material contingency. One Arizona court, however, has ruled without significant discussion that a termite inspection is not a material contingency. Inasmuch as many buyers cancel based on a termite inspection, however, the better reasoning would be that a termite inspection is a material contingency. Even in those situations where two co-broke commissions are owed, however, a settlement is usually reached between the two brokerage firms.

Is there a problem? In my opinion, “If it ain’t broke, don’t fix it.” The MLS system is so successful because buyers’ agents know that, if a ready, willing, and able buyer is produced, at the list price (or at a price agreed to by the seller), the buyer’s agent will receive a commission, even if the transaction does not close.

Article Source: Combs Law Group blog