Buyer Asked Me To Sell His Portfolio!

Buyer Asked Me To Sell His Portfolio!

Contractor · Chicago, IL · Member since 2014 · 31 posts · 2 votes

I approached an investor/Broker to ask if he needed any help in renting a recent purchase he made next door to me. During our conversation, he asked me would I like to sell some of his properties for him.

He has a portfolio of 20 properties, all occupied with Section 8 tenants, and he just emailed me the list, with his asking prices, and a total of each rent paid per property, per month. I replied to his email with somewhat of a contract which stated:

"First of all, I appreciate your business, and I am willing to work until all of your properties are sold. We need to come to an agreement:

I will sell each property, slightly above your asking price (2 to 5 thousand). When I give the buyer your phone number, if you negotiate with the buyer down to a lower price than I stated, I will accept a minimum of $2,000 for that specific sale!

If you should sell any other properties through my referral, a minimum of $2,500, per property sold is to be paid to me for allowing your contact information to be given to any other buyers.

This should be considered a contract.

Should you have anything you want to change, discuss, or upgrade, please email, or call me. When we agree on these, or any updated terms, I will start the process."

He hasn't made it home to check his email yet. My question to you guys is, Have I messed up?

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J ScottPro Member
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Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
11y

I'm not an attorney, but unless you're a licensed agent/broker, it sounds to me that you are going to be breaking some laws with this agreement.  You are essentially offering to broker real estate, but without a license.

I would consult an attorney ASAP...

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  • Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes
    11y

    Depend on your email at your own peril...if that is all you have, I would say you have very little. Contracts must contain certain elements to be considered a legal, binding contract, none of which you expressed here. Richard, what you have expressed is a desire, not a contract. 

  • Residential Real Estate Agent · Dallas, TX · Member since 2014 · 6 posts · 3 votes
    11y

    I am not an attorney, but I am a licensed real estate salesperson in Texas and CA. If I was in your situation this is what I would do. Use a State approved contract or have an attorney prepare an agreement between buyer and the seller. You will actually enter into an agreement to purchase each individual property for an agreed upon price, with a lengthly option period to procure a buyer and make sure you have the right to assign the contract. 

    When you find the right buyer you can do an assignment for the agreed upon contract price. I recommend you do a simultaneous closing and the difference between what your purchase it for an what you sell it for is yours. If you do not procure a buyer then you should make sure you have a right to terminate.

    By entering into a purchase contract he cannot sell them to anyone else. 

    I hope this helps. Best of luck.

    Aaron

  • Contractor · Chicago, IL · Member since 2014 · 31 posts · 2 votes
    11y

    Aaron,

    I've got it. Since I posted this, the seller and I have had a discussion, and drafted a written agreement.

    Thank you both.

  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    11y

    I'm not an attorney, but unless you're a licensed agent/broker, it sounds to me that you are going to be breaking some laws with this agreement.  You are essentially offering to broker real estate, but without a license.

    I would consult an attorney ASAP...

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    11y

    To follow up on what @J Scott pointed out, not only is it illegal for to receive this fee in probably every state in the nation.......generally contracts for an illegal activity are unenforceable.

    I assume you know how to google the Illinois real estate licensing laws.

  • Queen Creek, AZ · Member since 2014 · 2k+ posts · 1k+ votes
    11y

    Why not see if he will do owner financing and offer to buy the portfolio?  Then sell it to an investor with a Sub 2 wrap.

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