BiggerPockets

Wow... That makes it very sticky...

This is exactly why I don't have a real estate license... Funny enough, I used to own a real estate company and had all kinds of agents running around, but have never held my own real estate license...

I would see an attorney...

I am not sure what you are asking exactly... Are you asking from a legal perspective, a title and escrow and closing perspective, as an investor, or as a Realtor?

The Realtor part... I feel the State would chew you up if they got wind of this!

Our company once had a problem where it felt like the State practically raided our office because they didn't like the wording on a flyer. It was the weirdest thing I have ever experienced... They rush our office with 3 State employees, make my office call me (I was not at the office at the time), I drive back to the office from an hour away, cancel the meeting I was getting ready to go into, while they all wait at my office for me... My staff basically left the building and fled for their lives as they were all wondering what the heck was going on.

I get back and meet with them... And once they told my why they were there I asked "why didn't you just call me?"

Thanks for basically closing down my Company for the day and wasting ½ of my day over 2 words on a flyer. Talk about a waste of tax dollars! Give me a break!

Just my 2 cents! (And this is just my personal opinion)

O yea... Another Realtor turned us in... Apparently she was upset that our Company got the listing and she didn't. O brother!

i assume the land trust is a vehicle you would use in order to conceal your identity as the potential buyer/seller in this transaction?

you may want to check with your state laws regarding its real estate standards and procedures with respect to the violation of your fiduciary duties to both your seller and your buyer...that is if your state has broker relationships. if you purchase this property without disclosing to both parties that you are in fact making $50K on the transaction by " pushing papers" you could wind up paying treble(3x) damages to all parties involved, that translates into 2 parties, times 3 = 6 times damages, or $300K. it's a felony in my state to participate in this type of transaction. and you could lose your license for up to 10 years in florida.

Walk softly on this deal, and remember, when in doubt, disclose disclose disclose. if the seller and buyer are OK with you making $50K off of them, then by all means buy it for less, sell it for more. but you would, in florida, be in violation of your fiduciary duties to your clients/customers because you know what the difference is between what the seller wants for the property and what the buyer is willing to pay for it.

i believe there is also a federal statute in RESPA (Real Estate Standards and Procedures Act) that would prohibit this type of transaction, but I am not entirely sure about that. if so, then it may be a federal offense.

again, when in doubt, disclose disclose disclose.

I see we scared you off... LOL

Better to be safe than sorry. So they say...
What you want to do is probably ok overall... But as mentioned, the disclosure thing really comes into play with a license being involved.

Kill the license and get big brother off your back!

Wow So I wanted to update all who replied and critzed about my goal.

So I got great advice from my mentor. He told me to just LIST the property and ask the seller for high commissions. (I'm a agent)

The Seller agreed to an 11% Commissions. I listed the Property on Valentines day for 389k. The next day an unrepresented retail buyer called about my Listing and wanted me to write up the deal!

The property was sitting on a build able lot!

Buyers offer was 400k. And I had the offer.... 400k .......11%!

Yes 11%. Pretty much what I wanted.

The offer is mutually accepted today.

:)

Thanks everyone for all your replies
Especially Mr. Kill joy and story time
Eric Foster

I needed a guy like you to give me a kick to find another approach to my deal...

See ya in Maui people B-)
AHHHHHHH! Slum dunk

Be careful of the ad hominem attack. I think everyone here genuinely wants to help. Questions and words of caution are discourse, not criticism.

There are a million ways to make money legally. Good luck with yours.

Do you think that an 11% commission is sustainable when " the market" offers 6%?

I've noticed that there are some people who talk to hear themselves speak. These same people are very focused on themselves.

I almost partnered with a successful landlord on a plantation in Africa, but his self-centeredness drove me away. Had he shown concern for anything beyond what he had and I didn't, it might have worked out. Two years later I can still spout how many units he has and his net worth as well as his age because said those things so often.

Anyway, I sincerely appreciate guys like you who ARE willing to share their years of experience.

Jonathan

So because the property was sitting on a build able lot (what is this?), the buyer raised the price by 11k and you made 44k on the deal? I'm a little confused, you said in the beginning you were a realtor, but then you said here that you were an agent so you can get commission? So, if you were a regular'ol RE investor, you would be able to put the property under contract and sell it to the buyer no problem?

Ahh, the joy of confusion.

So an update for all the questions and concerns.

I used my license to List the property instead of assigning it or Double Closing the deal due to a simpler approach with the advantage of being a realtor.

I listed the property for 389k and got it under mutual acceptance for 400k.

Total commission is 11% Buyer has an agent so My split is 8%.

Set to close on the 21st. :-)

Thanks again everyone for all your advice and support.