OfflineCurrently have 2 FSBO's that want me to sell their homes. Put ads in 2 local papers, have gotten various calls from interested home buyers and investors. Bought FSBO signs with my number posted, bandit signs, open house signs, and am waiting to get my biz cards, post cards and fliers via mail. Have started posting ads in craigslist.
Have people with $$$, but so-so to bad credit, but some have up to 60K down pymt.
I've got 2 RE brokers, and 2 loan officers too, but I feel stuck because I am being told that I cannot do these things w/out an RE License legally.
Anyways, I'm moving forward...it's all I've got! Question for anyone that has truly applied this before, can I charge a Buyer a finders fee, if I do all the leg work to find them a home and get them qualified w/out a license? And, can I get a bird-dog fee from either listing agent?
Honestly, I'm a little scared, to fail or get busted...
any advise from experienced seniors is truly appreciated...I'm going slow and am not greedy just want to pay bills and make progress to gain experience...I've spent lots of dough on dg tools, more than some, and less than others, so at this point I need an ROI.
Thanks,
Charly.
You could charge the buyer a fee but that wouldn't included in the overall costs of the home. It would have to be a side deal and not sure if its enforceable, depending on the law.
In regards to a home, you cannot legally get them qualified or do anything or negotiate with a licensed professional if you yourself do not have a license.
no you cannot collect a fee from a relator; thats called a kickback and it is 10000000% illegal, punishable up to forfeiture of license and fine to sponsoring agency(broker)
Your best bet is to work with investors, not potential homeowners
In Texas. Thanks for breaking it down like that for me, now it makes perfect sense.
Appreciate You!
You can sell to your end buyer if you have it under contract to purchase it. You can do a double closing if the spread is there, but seasoning may be invloved with your end buyers bank. You can also assign it as long as you have it under contract and have the and / assign next to your name and have told the seller that you may do this so the whole deal is transparent. Or you can do a sandwich lease option. Elix is correct in that your better off with a cash buyer on the first two options I mentioned.
What you can't do is just bring a buyer to the owner because you are then acting as an agent. Having it locked up you are assigning your rights to purchase the property.
Good luck
Richie
That's cool B.C. thank you. Can you advise me on the following scenario? Ok long story as short as possible and to the point. I sold my home 18 months ago to an elderly WWII vet gentlmen. He has since passed on and now this huge house has passed on to his wife. It's 5BD/3BTHS located in the foothills of the country club. She has it under contract with a Realtor for last 5 months, she is already behind 2 months in payments. I sold it for 250K upgraded. The gentlemen put 25K down, and they have made over a year's worth in payments. It will take a while before it Forecloses.
I have a buyer that's re-located from out-of-town with wife and 5 kids looking for a minimum 4BD/3BTH home, as much as 250K price and has 50-60K Down, and has a property Free and Clear in another state that's currently for sale and undervalued. BUT, he has a Foreclosure on his credit record from the other state because the bank sold him a residence that later he found out was a manufactured home...what can I do here?
if you introduce both of them without paperwork they owe you nothing
That might lead you nowhere if he has that blemish on his credit and can't get financing
Think of a Plan B in the case this house is out of reach. its looking like a strong possibility unless you can fidn another buyer
I think I would use Randys methods here.
Ask the lady who owns the home if she wants to sell it and get out of the mess. I would personally offer her a few thousand to help her get started over, your choice on that, But tell her you will bring the mortgage current and keep making payments til it sells, you want to do a sandwich lease option with her. Have your end buyer give you 10k down for a 250k purchase with a 2yr purchase option non-refundable if he decides to leave. I assume the woman owes less than 225k on it. use the dp to catch the mortgage up and give the lady some money to start over and the rest is yours.
If the payments are say 1200 a month, rent to your buyer for 1500 a month, tell him 100 a month of the rent will go towards the sale at the end when he purchases the home. The other 200 is your cashflow. During that time he needs to work on his credit and maybe his wifes as a co signer if needed. Elix is more familiar in that area than I am as far as if he can get a loan with a forclosure on his name even with a cosigner. You make money going in , in the middle and on the way out.
I think Bill O raferty posted something like this somewhere.
JMO
best of luck
Richie
I think that I read that cspade is in Texas. If so, be careful regarding a lease option agreement. I haven't done a L/O in Texas for awhile, but I remmeber the Texas legislature passing special rules (I think 2005-2006) on special procedures that must be done to make the L/O enforcable and legal. Check with a local REIA to help guide in this area.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
Oh yes of course I will not leave the current owner without putting at least 5-10K for a fresh start. What about Joe Jurek's method of negotiating the terms and price down with BOA first, then find a Private Loan, then bringing in new Rent-to-own buyer...wouldn't this give me more room to make money off the Private Lender and then the new buyer?