Ho

Duluth, GA · Member since 2014 · 47 posts · 14 votes

What kind of agreement can I use if I am structuring a deal between a seller and a buyer without having a contract between me and the seller? For some unknown reason the seller do not want to be on contract with someone that is not personally buying the property. He mentioned that we can set up whatever deal/agreement without involving him. Here is the deal:

The seller has several properties in Birmingham in good condition, no rehab, all tenanted. He is offering to owner finance these properties at 6%. I mentioned that I know several investors in the Atlanta area that will be interested in these properties. He said I can market these properties. However, I will have to create my own agreement. He is not interested in dealing with a wholesaler.

My issue is how can I assign these properties without being on contract with the seller?

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Nathaniel Carswell

Flipper/Rehabber · Atlanta, GA · Member since 2015 · 35 posts · 18 votes

10y

@Pamela Holmes That's awfully strange. I actually put my fee on the contract under the stipulations. For example:

∙ This is an "as is" sale

∙ Seller is to provide clear title at closing

∙ Seller is to pay Pamela Holmes a $1,000 marketing fee.

Or you can use a simple marketing agreement. I use one that's only 4-5 sentences long. Another option is to have the buyer pay you your commission. Just make sure you have an understanding with the closing attorney because regardless if your fee is on the actual sales contract or on the marketing agreement, it needs to be listed on the HUD to guarantee your pay

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Devin Morgan
Baltimore, MD · Member since 2014 · 91 posts · 49 votes
10y
I'm not in Georgia but I'm pretty sure you can't assign a contract you don't have. Not to mention I would be leery marketing a house that I don't have under contract. Quite a few things can go wrong with you moving forward with no contract. More importantly if there is no AB then BC contract how would you ensure you get paid?
And its not an unknown reason.... I wouldn't want to deal with a wholesaler either if I know I can deal directly with the buyer. You aren't the one buying the property, you're just the middle man. Everyone likes cutting out the middle man.
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James Mc Ree
Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 939 votes
10y
Would the seller sell you an option to buy the property at a certain price within a certain timeframe and would you pay the premium for that option?
Jim.
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Nathaniel Carswell
Flipper/Rehabber · Atlanta, GA · Member since 2015 · 35 posts · 18 votes
10y
@Pamela Holmes That's awfully strange. I actually put my fee on the contract under the stipulations. For example:
∙ This is an "as is" sale
∙ Seller is to provide clear title at closing
∙ Seller is to pay Pamela Holmes a $1,000 marketing fee.
Or you can use a simple marketing agreement. I use one that's only 4-5 sentences long. Another option is to have the buyer pay you your commission. Just make sure you have an understanding with the closing attorney because regardless if your fee is on the actual sales contract or on the marketing agreement, it needs to be listed on the HUD to guarantee your pay
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Pamela Holmes
OP
Duluth, GA · Member since 2014 · 47 posts · 14 votes
10y
How about an independent contractor agreement
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Juan Jackson
Contractor · GA · Member since 2016 · 268 posts · 54 votes
10y
Just make an agreement with the buyer to pay you for showing them such a great deal!
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Pamela Holmes
OP
Duluth, GA · Member since 2014 · 47 posts · 14 votes
10y
@Juan, that is the plan. I just wanted to make sure I'm not X'd out the deal. I wanted to make sure I had an ironclad agreement in place. Just needed some suggestions on the right language to use.
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