FTC Rules

Everything that we have been told is to build up a buyers list. Its hard to turn a property without having a place to go with it, unless one is independantly wealthy and wants to hold on to it for however it takes to repair and turn it. Who told you this?

I do not know the specifics, but I have heard something like this might apply if you are marketing a house you do not have under contract.

Meaning, it is totally fine to build a buyers list in general, but you are not suppose to use a house you have no interest in as a way of soliciting buyers. So advertising you can get houses cheap, or advertising a house you have under contract is fine, but taking a random house you have not lined up or the sellers agrees to you marketing it and saying it is for sale just to get buyers is a no-no.

Again, I don't know if this is correct or not, so don't take my word for it, or anyone elses unless they have link with the actual info from the official source.

I was told that after you have a house under contract then and only then you can advertise it. Sometimes that is overlooked, but at this time everything is looked into. That is what I was told. Otherwise you are considered an Agent.

Happy Hunting
charlie-d

Hi everybody,
dgadmin said it very well!Now i am rosefield and i am not that good at...Word for word! Anyway,here it goes...As REI's we must control the property(Remember we do not carry LIC.)and when we do have control...We can sell or give it away.I think what most people need too understand is,REI is the greatest loop hole in Real Estate and you are not breaking any laws.
Remember control=Sell or Give it away...It is your right to sell your property and give it away!!!!!!!!!!!!!!!!
P.S.If you give it away get $

Rosefield, I understand what you are saying. You have missed what I am saying. Reread what I have posted. Ask any RE Agent and see what he has to say. Remember, everything in RE revolves around the FTC. They make the rules. A lot of people forget or just flat out don't know what the rules are. I am not trying to be a smarta** but people should understand that the rules change all the time. What works today doesn't mean that it will work tomorrow.

Happy Hunting
charlie-d

from other posts on here. it seems we cant even depend on our lawyer to give us the right info, or our Realtor. The Lawyers and Realtors just want to say no you can't do it. so who do we trust ??????????? very aggravating, especially to us newbies who are concerned we are breaking a law and goodness knows we don't mean to.

All we ever hear is discussion about what we can't do and never anything to back it up we need a real estate lawyer for a dg member. lol......

PM ME AND I'LL TELL YOU HOW PREPAID LEGAL WORKS. I DON'T SELL IT. I JUST REALLY LIKE IT. $17 A MONTH UNLIMITED PHONE CONSULTATION YOU COULD CHECK THESE THINGS OUT.

If the RE Agent or lawyer says you can not do something ask them what is the proper way to do it. That way they have an idea that you are serious, and want to learn. Like I said in my post, everything changes so fast that it is hard to keep up. A lot of people don't realize that RE is really governed by the FTC. The changes are so fast it is hard to keep up with all of them. Have no fear if you don't know. They are there to help you and everyone else.

I have heard of Pre Paid Legal before. That is really a good legal service. At this time I really don't need it. For others I will say it is a good investment.

Happy Hunting
charlie-d

I wouldn't word your Ad as though you have properties when in reality you don't actually have properties when you're first starting out. It is false advertising! You can still compile a buyers list (you're going to have to go about it in the right "ethical" way). Your list will have to build by calling on the We Buy House signs, Ads and other yard signs of FSBO and/or For Rent signs and going to your REIclub to find other Investors (even RE brokers) who will be your buyers and make Flyers to leave at apartment complexes for renters who may be considering buying a house in the near future. You can advertise just don't make it misleading; that is what can get you in trouble if someone calls you out on it.

You have to understand that REAs look at us as competition which we are. We can lock up a property quicker than the avg buyer needing conventional financing. Don't get frustrate keep pushing pass the obstacles and other barriers naysayers throw up to deter you. God Bless in your REI endeavors.

is the best way you're going to learn what you can and can't do. Instead of depending on someone else's knowledge. You can read the same books they read to get their degrees to education yourself on the laws. Knowledge is power, a mind is terrible thing to waste.

Hope everything works out for you. Good Luck and God Bless.

Sandra

Hi Altcamel,
Again I find that you don't understand what I wrote in my post. Please don't flag me like erh did because he did not know the answer to my question. If you read my original post you should realize that I am only trying to find an answer to a simple(?) question. Sometimes people get all defensive because they don't know the answer. A little research is good for the soul. Right? I am a person who believes in a supreme being, mine being the Infinite Creator.

Happy Hunting,
charlie-d

Hi San Bern,

AS you can see, I have been doing a lot of research. It is nice to look outside the box. I have a habit of finding things. The only thing I haven't found yet is that suitcase full of money. HA HA

Happy Hunting,
charlie-d

Altcamel

Aren't you depending on someone elses knowledge?

Happy Hunting
charlie-d

It appears like you already received some really good insight and advice in the forum thread above. If you network with other investors or meet landlords in your area, they may become future buyers if you know the types of properties they want and what they are willing to pay. Thus, you can be building your buyers list with other investors and they fully understand that you will contact them if something is available that meets their criteria. Good luck on all your deals! Believe and Achieve! - Joe

Just a thought but, a buyers list is only a list of people you have asked if they would be interested in purchasing a property if you had one to sell. Nothing illegal or unethical there..right?

David

Hi there Joe
I do not have a buyers list because I have no contracts yet. When I have a contract then I will look for buyers. I am the kind of person that will wait. Maybe that is why some people get shot down, I don't know. If what you are doing doesn't work the best thing to do is ask why. You will more than likely get an answer. What do you think?

Happy Hunting
charlie-d

Hi David,
What I said in my post is what I was told. These are FTC Rules. If you don't know what the FTC is you and a lot of other people should do research like I have done. The only true way to know as far as I am concerned is to find out for yourself. I believe that if you are given the answers you learn nothing.

Happy Hunting
charlie-d

Hello Sir,
Your question is having a buyers list with-out LIC. I think the way around your concern,Would be...Bird-Dogging for a REA or REBROK! Look Charlie,How we say things,Will be the end result. Come on charlie, What is the problem following the American Dream!Get contacts of people, that would really love you helping them out...With that info, You just happen too have access to certain properties...That SOMEONE would like and the kicker is...You are only selling,What is yours!
All of the comments were great! And like always Atlcamel,Homerun!!!!!!!

Hi there rosefield
What I am trying to say is that, according to the FTC if you are an Investor, before you(Investor) can have a buyers list you have to have a prop under contract. I have been on this site since March 09. I do a lot of research, because I like to know what I'm talking about. I have been in the cash flow industry before going into RE. You would not like all the laws in that ind.

Happy Hunting
charlie-d

Hi,
charlie-d you are a good person and thank-you for your info!One thing before i go...On your signs/Flyers,Put...I want to buy a house/I want to sell a house! Loop Holes,Sir.
I really do understand you point!

Hi again,
The property under contract/Can have buyers lists,It sounds hard to prove!

Hi again rosefield,
It may be hard to believe but I don't do that .

Happy Hunting
charlie-d

Charlie my fiend,
I remember when i read the books, Dean stated...Even when i did find my own deals,I always brought in my Real Estate Agent!!!!!!!(Of coarse at a dicount)
If that is not the answer,I am not giving up!

Hello Charlie
if you could post a link to that rule it would be helpful, Id like to read it for my own education. If you feel you have to get a house under contract first before searching for buyers than that's your choice on how you want to do your business. What happens when you sell that home and have no other home under contract, what happens to your buyers list. Would it then be illegal to stay in contact with those buyers to make sure they are still buyers. In most cases that would not be a issue if your a go getter and get multiple house under contract. I don't know what your looking for in this discussion, Is it a like-minded individual to agree with you or just a discussion on the ethics of Real estate investing?

Quick question Rosefield,

When you find you own deal what discounted percentage do you pay a realtor

Hi jthom71,
Like I said in my post, I was told that. I'm sure those who told me aren't making that up. As for putting up a link, I wasn't given one. If you want to read it for yourself, I guess that you would have to go to the FTC site and research it for yourself. As for the second part of your statement, just asking a question and that is all. Believe me I am not looking for like minded anything.

Happy Hunting
charlie-d

I don't depend on someone else's advise entirely that was the point I was making in my OP. I comprehend what i read and gather information from books like everybody else.

Hey. Thanks for posting. This is a great discussion. It really made me think while I was reading it.
I really like running ghost ads to find people interested in a certain area. Of course, I always do have a property for sale, or one that I COULD sell. I wanted to point out that almost every new strategy I wanted to try this past year (all the new stuff I've learned from Dean's books), initially I had everyone telling me it was illegal. RE agents, title company, etc. Now, I know you've done your research and may have the most informed people giving you warning. I just wanted to say that if I had listened to MY professionals I would have been stopped dead in my tracks. Thank God for the DG family and the info shared here. I KNEW that if it was working in other parts of the country it HAD to work here, and I told them so. It took a little doing, but I found an attorney and title company in my town that were willing to try, and lo and behold assignments, bird-dogging, double-closings DID work here. I've done all three now through them. You can bet they now have my devotion as a customer! lol.
I know I'm a little off the subject of your original thought, but I just wanted to encourage you not to let the little stuff keep you from moving as fast as you'd like. Yes, always stand by your convictions, I applaud that. Just know that there is ALWAYS a way to make it work. And it doesn't have to be the hard way.

Keep up the good work, charlie-d. Wishing you HUGE success!

Rina

P.S. I'll bet the same people that told you you have to wait til you have something under contract would then say you can't advertise it until you own it. Some DO view you as competition, after all.

Hi there Rina,

Thanks. I was told by a couple of RE people about that. I was just wondering if anyone has heard of it.

I contacted Agent Greg awhile ago. He's been sending me a MLS list every few days for about a month now. He's over by Springfield, MA and I'm in Lowell, about 30 miles North of Boston. I asked him if he knew any Agents in my area. He got me a Broker 5 minutes from my apt. How cool is that. This Broker does foreclousers. No Short Sales. I'm working with him right now. I asked Greg if he could get me an Agent who does Short Sales. Two days later I got a call from another Broker who does Short Sales. Spoke to him Friday. He sent me a MLS for S/S. I can't believe how things are going. Oh, I asked if they are willing to work with someone who is new to investing. The first Broker said, by the time I get done with you, you'll be a seasoned pro. The second one said, No problem. We all have to start somewhere. Their replies blew me away.

Happy Hunting,
charlie-d

Nice responses from the RIGHT kind of professionals! (referring to charlie's post #30)
Yep, just stay positive. It's contagious!

Rina