In a market that is short in inventory I️ have been thinking about new ways to find listings. Has anybody ever considered using a hard money loan to make offers on listings? If the purchase goes thru that’s fine. I’m thinking about moving on some properties just to collect the commission on the buying side and again in the selling side.
Well, the cost of hard money will be more than both commissions, even on a quick turn over.
I'm confused on your question.
You're going to use a HML to buy a property and then what are you going to do with it?
This sort of strikes me as "buying the airplane to get the peanuts". Getting listings is tough, I agree. However, the hard money costs may eat away a large percentage of whatever commissions you gain. What if your listing doesn't resell quickly? That commission can disappear. This could work in theory if you knew you could turn the property over A.S.A.P.
From the real estate agent aspect, I would look for new marketing channels first. It would be cheaper in the long run and if you test your methods you should eventually narrow down what works best.
I like the fact that you're thinking outside the box. Keep doing that.
Maybe I️ could have been more clear.
For an off market probate property I️ want to take a quick loan to buy the property and do some basic remodeling then resell. I️ would have trouble getting a regular loan due to lack of work history as an agent.
I️ had someone approach me about doing a owner financed loan while they fix the house then when we resell we split the commission somehow.
I️ know it’s kind of a confusing situation.
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