Question on getting finders fee

kristy,you WILL GET THE MONEY,in order for the investor to buy the property he must go through you because you LOCKED IT UP remember? In order to lock up a property you have to give a deposit to the seller on a agreed upon number on the property,once the buyer and seller agrees you both sign an agreement to purchase, w/ an assignment clause to re-assign the property.no one else can buy the property until your contract runs out.

Before i try to re-assign a contract to another buyer,what is the correct contract to use on this web site purchase and sale agreement or agreement to purchase? thanks sully

Oh ok i see. I was under the impression on that particular senario the student found a foreclosure and the owners were willing to sell but he just contacted an investor he was familiar with and set up a deal where he found the property but didn't buy it and just gave the deal over to the investor and the investor, in the agreement, gave him a 2.5 percent finders fee instead of dealing with real estate agents. Is the situation i described possible? Thank you for your help!

Would you please give me some advice. what are most people doing to get started?Are they contacting people that have rent with option to buy or lease purchase deals or what do you suggest? I own my own home and want to keep it and keep turning properties but i am on a fixed income and really don't have money down. My credit is okay needs alittle work but nothing major. My question is where to start first? Thank you for your input. Cindy.

I was looking up the laws in my state and a neighboring state, which stated that finder fees were illegal in both states. Both stating that it was unlawful to bring together two parties unless one was a mortgage broker or a licensed realtor. I'm just confused as to how this is supposed to work considering the laws.

You are right about the finders fee law. It is against the law in a lot of the states. I found that out because I put a reward on the back of my business card for any information leading to my buying a property and giving that person $500.

Now, it is not illegal to buy a property and legally assign the property to someone else or perform an instant equity exchange.

Those are 2 different scenario's even though they sound the same.

Good morning, I just brought the Book on April 14, 2008-Be a real estate Millionaire (I'm already in chapter-13), Some information in this book I already knew about and some was very very helpful. I always wanted to do this for a while, but was afraid to start. The fear is keeping me from pursuing what I want to do. In this book it explain about fear. I see foreclosure/distress/fix-upper list all the time, but afraid to make the purchase.

I will like someone to help me thru this process. I know I sound like a child.
Im ready to start.

With the Instant Equity Exchange do I need to put money down or purchase the property first. Can you explain to me how I would go about that? Currently, I am still in school with quite a bit out in student loans. So starting out with money to invest in anything is not really an option right now.

Thank you everyone who took time to answer some questions for me! I will def come back if i have any more questions or keep you updated on my progress.
Thanks again,
Kristy

Go to the conference calls archive and you will see the instant equity exchange. Listen to the whole thing and that should answer your questions.

You can get to the archive by clicking the link under "Other Resources" that says "Dean's Live Calls", or directly by going to http://www.askdeang.com

Hi, I just receive my book Wednesday, April 16, 2008. I left the house to drop off my children to school so i can go to work. I seen a house that said for sale. What is the 1st thing i should of done? If i got the phone number what should i do and go from there? Please help me.

Thank You,

Shonda

then read it again and take notes

I have found a group of investors that advertise "close in 7 days" when i contacted the investors they gave me exactly what they were looking to buy. I took what they wanted and found a house with every thing they ask for,a major plus is that the house is listed 30k under what the investors were asking for. Upon descriping the house to investors they liked the house. I have not contacted the home owners but since i already found a willing investor i hope that they will close in 7 days. This is my first locater job and i dont know what time would be the best time to contact the home owner. I have a list of some questions to ask but dont wanna bog them down with questions. I can transfer what i have written down on this blog so that you the reader can see how i am doing. I would like to thank you the reader in advance for your help.

I don't think you should be worried about "bogging down" a homeowner who may need you to get him/her out of their house. you gotta do what you gotta do. if you want the info that bad, you will ask the necessary questions. you can't deliver the necessary information to the other investors until you have all the information. the more you know, the more credible this will make you look, and these investors will want to work with you again. if you give them a "deal" that is horrible, they will not trust you in the future.
have you checked comps in the area? how low below comps is the house going for? LTV ratio?
I would contact the homeowners to find out as much information as possible.
Good luck

The house is listed at 81k. As for the LTV ratio i am not sure. It is in a new neighborhood located in a culvasac, I am sure that the house has had one owner but these are things i will find out once contacting the homeowner.

please let us know when you have more information. would love to learn more about the potential of this deal. keep us posted.
Nick

i am about to contact the owner to get more infor but should i tell them that i am looking to reassign the house?

you don't have to tell them that you are going to assign the contract. that's why you put "and/or assigns" in your purchase and sale contract that give you legal ability to assign the contract over to another investor.

I am a first time investor , just in case this sounds really silly. bUt I wanted to know..

How do you formulate the purchase agreement.Do you right it your self or do you use online software that can help you?

My second question is how exactly do you put in the agreement when you " purchase the property" that you have the right to assign it to another investor?

And thirdly What if you lock up the property and then you do not find a buyer within the time that was stated for you to sell in the contract? What would happen then?

I know these questions may sound absurd but I really just want to make sure I know what I am doing before I do it.

Thanks Allot,
Mandisa

welcome to the website. you will find a lot of helpful people here who can guide you and motivate you to success
-a purchase agreement is a written contract between two parties, a buyer and a seller with some sort of monetary consideration to bind the contract. no formulas needed here here something in writing that states who the buyer is, who the seller is and what is being exhanged. there is a great section in this website that has all forms and documents needed for any real estate transaction. check it out.
-in the area where you note the buyer, you will put your name (or the seller's name) and/or assigns after your name. this makes it legal to assign the contract to another individual
-if you do not have a buyer within the time of your contract and you do not have an exit strategy, you could be legally bound to the property. you need to have an exity strategy such as an inspecition contingency or a clause contingent on obtaining financing. you need a way out if you can't find a buyer. This is why it is so important have a network of buyers if you are going to wholesale deals. if not you could be putting yourself in a tough situation.

hope this info helps.

Thank you for your help I really appreciate it! I found the forms page right after I sent the message!Although I do have a couple more questions.

What exactly is a inspection contingency or clause contingent? Is there a way that I can see exactly how i add these particular statements into the form and exactly how to word them?

Thanks again

hi caridad,
ican only offer encouragement like sideline cheerleader i hope it boosts u to keep going. you're not alone and i too have been held back by my fears but that has gotten old and i'd like to write a different story.
best wishes,
cindy lu

hi caridad,
ican only offer encouragement like sideline cheerleader i hope it boosts u to keep going. you're not alone and i too have been held back by my fears but that has gotten old and i'd like to write a different story.
best wishes,
cindy lu

An inspection contingency is one of the most common exit strategies when assigning contracts to other investors. When you write out your offer, you include a clause in the contract stating that your offer "is contingent on the inspection." usually there is a time frame that you can have an inspection done, 2 weeks, 30 days, 60 days. if and when you have the inspection done and he/she finds something wrong with the house that will affect the sale, you can opt out of the contract with the inspection contingency in place.
Another common contingency is a contract "contingent on obtaining financing" you can opt out of the contract if you are unable to obtain financing.

Thank you again for all the helpful information. I have a notebook full of "how to"s. How to write in the assign clause, how to bring the buyer and seller in agreement, contingent clause. WOW, what a lot of good info. Thanks again Loria Gathings

Sully,I am an educated woman,but barely have knowlege to navigate the computer. I have avoided using the computer, but at this time, avoiding has brought me nothing,but feeling like I have not done enough. So... Here I am tryin'. I left messages in the forum and anywhere else I could think of to communinicate my needs and questions and I stumble into your section. You are a Godsend. My question is very similar with the other questions posted in your section. "I don't have money or credit to start investing. What can I do! I logged on in the website (search engine)to find investors who might be willing to work with me. All I found are people who wants to sell a course and pretended they were investors in the beginning. Where else can I find investors other than the newspapers? Would that maybe in real estate magazines? I do appreciate you and your help. God bless. Thank you for being there. Luisa

Welcome to the DG family, we're so happy to have you here with us. You don't need good credit or your own money to do deals. What you need to do is find them and flip them to other investors. Log onto craigslist or backpage.com to find investors, your little newpapers are another great source, dandy dime, pennysaver, thrifty nickel, the smaller papers always have we buy houses ads. Also when you're driving around and see bandit signs, call those guys, they're investors too. Put your own ads on craigslist and backpage.com saying you have inventory you need to get rid of, investors will contact you. The main thing is to network, network, network. Go to your local REI club, they meet once a month and have an hour where you can meet investors, realtors, mortgage brokers, contractors, etc. Take plenty of business cards so you can pass them out to everyone you see and make sure to get theirs too. Once you've got investors lined up then you can flip the deal you find to them and make as assignment fee for your time.
I hope this helps you. Let us know how you do, we're here for you.

You are a very good resource! That was a lot of resources too! Thank you for answering my questions and for being so thorough about your explanations. thank you also for yoyr encouragements. I will keep you and the rest of DG family posted on my progress. Again, thanks a bunch

You are a very good resource! That was a lot of resources too! Thank you for answering my questions and for being so thorough about your explanations. thank you also for yoyr encouragements. I will keep you and the rest of DG family posted on my progress. Again, thanks a bunch