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who pays the broker when you use the 25 to 1 method?

April 22nd, 2012 | posted by jessicac27

I want to try the 25 to 1 method and call a broker so he can send me the listings that are available in my area but I am confused about a few things...
1. who would pay the broker for his service?
2. what if you do not have any money of your own to invest who's money are you suppose to use the buyers?
3. if I put down an offer and it is accepted what is my next step? (mind you I do not have the funds myself because I would just be getting started)
4. who will I or should I expect to make a profit from (the buyer or the seller)

Thanks guys.

On 21:52pm, April 22nd, 2012 Cocoon said:

Hi Jessica,

Cocoon's picture

Hi Jessica,

To answer your questions:
1. The buyer
2. For double closings (A-B-C), you can use "Transactional Funding" for the B part. For Assignment Contracts, you lock up a property with a seller for a specific amount, and then you Assign your "rights" to the Property to your end Buyer for a fee (Your Assignment Fee) - a sample of this Assignment Contract can be found on the Menu on the left, Under "Student Resources" "Forms and Docs".
3. Dean teaches in his books to Build A Buyers List first, know what type of properties they want specifically, and then find those types of properties. That way, when you find such a property, you can lock them up in a Contract (Purchase Agreement, with "YOUR NAME &/or ASSIGNS") and then sell them to the Buyers in your Buyers List.
4. From the Buyer, when the deal closes. All the money transactions are done either with a Title Company or a RE Attorney, they set up an Escrow Account. You will get paid at closing/ when the deal closes.

Below are similar links Smiling

Also answered on these forum threads:
http://www.deangraziosi.com/real-estate-forums/everything-else/104978/re...
http://www.deangraziosi.com/real-estate-forums/financing-and-credit/1026...

Happy investing!

Cris

On 1:22am, April 23rd, 2012 Tina1 said:

Hello Jessica!

Tina1's picture

Cris is right on all counts, these are the basics you'll learn with Dean's teachings. Additionally, you will find there are variations you can do in every deal and that's what makes RE so exciting. A RE deal is created; it's like a piece of clay that you form and shape to make it a good fit for (in our case, as DG-ers) all three parties. The seller, the buyer and our buyer.

Here's a sample variation: you can get paid at the time you execute the Assignment of Contract. This is how I made $4,400 on my first deal. It never closed, but I got my fee for what I did. My buyer was not upset, we still talk to try to do more deals-- he did not close because he hadn't planned well. When we do another deal together, I'll try to give him a discount.

-Tina

On 1:38am, April 23rd, 2012 Valuni said:

Jessica,

Valuni's picture

if you haven't already done so, I would recommend that you read Dean's books, especially his newest, 30 Days to Cash in RE, which is literally a step by step guide to wholesaling.

Also, you may want to enter some information about yourself on your profile, so that other investors here can know a little about you and where you're from so that they can network with you.

Wishing you success,

On 21:44pm, April 23rd, 2012 jessicac27 said:

Thanks guys

jessicac27's picture

I have dean's "profit from real estate" book but I haven't finished it. I will continue reading.
Valuni- is that book different from the one I own? Also thank you for reminding me I will update my information.

Thanks again guys!