Question on getting finders fee

I am in the process of closing on my first assigning. I have talked to the home owner and told him what my intentions are. I explained the process and have sent him a copy of the contract to for verification. He is pleased with my proposal and would like to sign. The house is what my investor is looking for but the house is not paid off. I do not know if the house not being paid off will be a problem. Would it?

Congrats! You're on your way to being a deal maker, good for you! As long as the end buyer has the money or can qualify for a loan I don't see why it would be a problem. I hope you're making a good assignment fee. Best of luck to you, let us know how you do.
Continued blessings,

well im also new here 2 but im like all newbees i have lots of Q ! i have a bus lic but its not for real estate do i need a real estate lic pre say,like LLC,i all so read we can do this no moneys out of pocket but then when i started to read on how to do assignments it said earnest money and inspection money was needed well i dont have,and als if my cridit score is 650 and i have a va loan useable could this be a way of me getting this investing thing going,i know i cant just bye va to sale and make money but i found out i could bye va and rent, could i bye a pre forclosure or forclosure useing va.or is my cridit score good enuff to get conven loan,or should i find the step by step ways of doing assignments woow i really what to get going on this but i just dont have it all in my head yet to get started. and dose anyonw know more about conssation with the saler so i dont have to pay ernest or closeing and all ?/?/

Now, to answer you question about you needing an real estate lic., that would be a NO, you need NOT any type of licence to be a REI(real estate investor)

Now on to question #2: with a fico of 650 you should be able to qualify for conventional financing, as long as you make decient money and have been stable in your living environment and @ your job. However, it never hurts to do some wholesale deals to raise some capital for future bigger projects

Since I have poor credit, I'm trying to start doing finders fees. Since I'm new to the Real Estate stuff, what type of questions would you ask? If you don't minde me asking.

Thanks
Anne

Hello,
I read a lot of the post thus far and i just need a little clarification. If someone would be of assistance and tell me exactly what i need to do in starting in assigning deals, that would be wonderful. Any helpful hints,tips, or tricks would be wonderful as well. THanks in advance to anyone who will help me.

Hi Sully, is there a sample sheet so I can know how to correctly fill out the purchase agreement form and reassignment form. Thanks!

Sangria

Hello All,

I'm new to DG community and REI and have almost finshed reading the "Be A Real Estate Millionaire" book. I've read a lot of the blogs and posts and they are all extremely helpful. I'd first off like to thank everyone as you are all mentors as far as I'm concerned! The question I have is for those of you who have already done several successful reassignments what method do you find works the best in locating the properties you lock up for reassignmnet? I have very good credit but no cash on hand due to paying for all the debt and will need to earn the quickest return on my investment which I'm thinking will be on reassignments until I can buy down the debt and build up an investment fund. Thanks much!

Tony

It is a fictive situation, but it is an important one.

You are in the last step of assigning a property over to an investor. You are doing so by using simultaneous close(or double contract).

Now you are at the site ready to close. The seller shows up first at 9 am and closes with you. Now that you are done with the seller, you will quickly need to close with the buyer but he/she does not show up!

How do will you be able to cash your profit without having to buy the house and pays owners fee(only applicable in certain states like NY)?

Does someone know the answer? I need it.

ALWAYS CLOSE WITH ....YOUR....BUYER FIRST....THEN THE SELLER... You want to make sure that YOU have the funds to buy the house......IF YOUR buyer doesn't show up....then you would use your "subject to buyer getting financing" as your way OUT of the deal at the last moment and retrieve your Earnest Money.

Sam

Thanks for the answer, but what I needed to know is how can I still make my profit w/o having to buy the house, because that the last thing I would want to do.

Not to throw a wrench in that, but you need to own the property BEFORE you can sell it to someone else. Or am I missing what you're saying here??

Rina

P.S. LOVE all your posts. They are very informative, motivational, and fun to read.

that IS a good question...
You need to have a relationship with your investor that you can rely on. If you trust them so little that you feel they might not show up, I wouldn't be doing business with them. As far as what to do in that situation, you may just end up with some irate individuals, but could possibly move the second closing due to "unforeseen emergency". You'd have to be creative in working it out and definitely use some PEOPLE SKILLS. Best scenario, though, is to not count on that ever happening.
For SURE, don't be thinking NOW of all the bizarre things that could go wrong. You'll talk yourself right out of doing REI! So, move ahead on the POSITIVE note. YOU CAN DO IT!!

Rina

P.S. Have your buyer put up the earnest money. That way they have something to lose if they don't show, and you don't (well, maybe a little pride. lol)

Yes! you are right! They should pay an earnest money upfront as you says. Thanks for giving me a good advice and confidence. I did not imagine the scene, but the question was ask by an instructor in a "Rich Dad's company" seminar I went to. No one knew the answer, but he did not give it to us. But you are right when you said we need some people skills. What I would do is call the seller immediately and let the know of an "unforeseen emergency" as you said, and I would tell them to give me at least two weeks to work things out promising to pay for closing the next time. Then I would immediately call investors in my back order list and ask them if they are still interested in purchasing that particular property. Than I would ask them for an earnest money. I would fix another closing date crossing my fingers hoping that both parties will show up. That's a deal! and I walk out with my profit!

Where can I find the Investor Purchase agreement contract that locks up the homeowner until I find a buyer?

Hello Everybody , i talked to 3 RE Agents in my area , and they all said that its not possible for me to lock a deal or tie it up under my trustee name , i have to hold title under my name before i can turn around and wholesale it !which means i have to manage getting my financing together and go through the whole process of buying the prop before selling it again.
Whats the way around that any advise?

I have a question on assigning real estate. Is it better to assign houses that are FSBO, or ones that are listed with a real estate company, or doesn't it matter?

I'm new to investing. I finished Dean's book, BARM and am starting on Profit From Real Estate Right Now.

do you know if it is legal in ohio to do a assignment or do I have to do a double closing? If you dont know, do you know where I can find out? websites etc?

Hello,

My name is Darrell Lofton and I'm in the real estate success academy, I have a home featured on my website http://www.darrelllofton.com/ "fixer- upper" 6 br in Las Vegas Nevada , the price was drastically reduced to $105,500 CASH. I would like to purchase the home, fix her up and sell it for a MAJOR PROFIT!!!

Any ideas ?

Thanks
Darrell Lofton
Real Estate Investor
Cell: 702-807-7615
http://www.darrelllofton.com/

HI everyone. I just started and I got a call from an investor today. He told me that he like to close in on properties in a week.I've seen a property but I have talk to the agent over the property yet so really I have no property. I told him about the property that I saw and he said that he'll like to close on it. But what do I do to get the property that I saw today. What should I do to assign him the house and get a finders fee that he said he's willing to pay.

I am also just starting out....I am doing the old method for now on driving neighborhoods and noting distressed,fsbo, etc. I am not in the position for "any" cash out/down. I am looking to assign/IEE. Start talking to guy with money looking to buy properties....tell them that you will bring the deals to them and they go or pass on them. You will get alot of interest from most.

Assignment seems to be the best way to go and don't get greedy on the pass thru to start just make some money....the bigger cash will come from you being in the deals progressing....

Riverside...in VA.

I am also just starting out....I am doing the old method for now on driving neighborhoods and noting distressed,fsbo, etc. I am not in the position for "any" cash out/down. I am looking to assign/IEE. Start talking to guy with money looking to buy properties....tell them that you will bring the deals to them and they go or pass on them. You will get alot of interest from most.

Assignment seems to be the best way to go and don't get greedy on the pass thru to start just make some money....the bigger cash will come from you being in the deals progressing....

Riverside...in VA.

Have not received Deans book as of this date, and like many others, was always interested in real estate but never took the first steps foward. I guess what i want to say is, thank you all for the information and support.I guess there are alot of people like myself,that need to here from people that are really applying this info. form Deans books and knowing that this really can work. again THANKS TO YOU ALL

Hey sully or anyone else who can provide some insight, I've been reading your post and I see that you are very helpful and understand quite a bit. See i'm stuck, I have no money, bad credit, no car and I just don't know where to start. I've read dean's book(PFRRN) and loved it but like you said to someone else i'm just overfilled with information and don't know what to do with it. I think I would like to start with trying to assign properties but I don't know where to look for buyers or sellers.Can you help me find the easiest way to start doing this.I also read that you look for preforclosures(where do you look for those... I'm soory if my questions are all bundled up but i'm just eager to get started and this would really help me support my family. Well i'm looking foward to your feedback...Thanks for your time...

hi, i am new to the community and i have a question. I live here in Tennessee and i see a lot of For Sale By Owner signs in the yard. What do I do?

If you fail to plan, you plan to fail. Plan out steps on what's needed straight from Dean's book it self. i hope this will give you some insight. Drive by any neighborhood, Find a distressed property, Find owners and contact on County Property Appraisers website it's Public Records, Contact owner and introduce yourself and your purpose and try to get the property on contract to purchase for a Great Deal, Once Agreement To Purchase contract for $XX,XXX you go and post property on News Paper, once you find a buyer you become the seller of the property on the next Agreement To Purchase contract, Lock up deal with your mark up in price, $5,000 - $20,000 or better, Take both contracts to a real estate Lawyer or Title Co. for the closing and all Legalities needed, They will cut you a check for the profit made! Cash it! I hoped this helps... If U need more info Holla @ Me!

In Dean's book, "Profit From Real Estate RIGHT NOW!" describing an I.E.E deal Starting on page 151, he states that you(invester) tell the seller that your commision doesn't come from his pocket.
He descibes a deal where the investor would offer seller 100K for his property and the investor would make 10K. He then goes on to say that the investor would draw up a purchase contract with the seller for 110K. When the investor finds a buyer for the property(I'm assuming for 110K)the investor draws up a "Discharge of Agreement to Purchase Statement" Which states that the investor is being paid to make null and void the original purchase agreement between the seller and the investor.
Although the funds for this would come out of an escrow account (buyer's funds), technically and the way a seller would (I think) interpret it, the seller is actually paying the investors 10K cut.
Is this a missprint, or am I not getting something? It seems to me that the investor's First purchase contract with the seller would be for 100K, then when The investor would draw up contract signed with the seller and buyer agreeing on 110K, then "Discharge of Agreement to Purchase Statement" would be signed.

Also on page 155 of the book, second paragraph of "Investor Disclosure Statement and Seller's Acknowledgment" It states; " This sale shall be contingent upon the investor finding a buyer that shall qualify for financing according to accepted criteria of ___________________ and its funding sources."

What is this for? The investor wouldn't know (or care) where the buyer got his funds as long as he(and the seller) got the money. Couldn't you just put "any qualified lender" in the blank.

And what is to stop the buyer from simply waiting for the original purchase contract to expire in the 14 to 30 days, then going to the seller to make a deal bypassing the investor?

I would appreciate any help with these issues as I am a newbie ready to make some deals and I won't feel confident if I don't totaly understand these contracts. Thanks in advance for the help.

I'm new to this as well but I think the buyer wouldn't wait for the contract to expire and bypassing you because usually they are investors. They are aware that having other people find great deals FOR them will cost them money. However they are willing to pay it because it saves them from having to do the legwork. You do the work and get paid for it and they buy the property and then make money themselves from it. I've been told that people in REI in any particular area get to be familiar with each other so they need to work together.

Hope this helped,
Jean
CAS Investments

This program how well do this the automated kit work. Is it something worth buying?

What type of paper work that are needed to cash in on your finder fee? Outside of having a seller in place what does you as an Invested have to bring to make the happened? I found out a great place to find buyers are businesses that post ads saying "buy or sell your home" what fact about the property do you need to bring to them?