Snellville, GA · Member since 2018 · 5 posts · 0 votes
Hi there! I'm a new real estate investor. My agent sent me a townhouse listed for $69,000 no rehab needed. I went to view the property and the owner was still living there. She told me that the house was paid for, free and clear. I directly talk to the owner and emailed her a formal offer for $50,000 all cash. Her agent (the listing agent) emailed me back and told me that they will accept the offer ( No counter). My question is, can I put the house under contract with an agent involved already? or should the owner cancel their contract with the listing agent first.
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
8y
I don't see why you couldn't. The agent was hired by the seller. So, the seller pays the fees. There should be no reason the seller should need to remove the agent (assuming it could be done).
Overland Park, KS · Member since 2016 · 30 posts · 23 votes
8y
trying to get around an agent at this point will probably not be a good idea. They have contracts in place or they wouldn't have listed it. Don't you have a contract with your agent as well?
Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
8y
Just make sure the contract you sign is assignable. We have clause in ours that states that our contracts CAN NOT be assigned. You'd want to scratch that bad boy out if yours does too.
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
Of course you can, it's just a regular sale. Do you plan on buying the property? You'll have a hell of a time trying to make any money trying to sell it to an investor, there's no equity left with that price spread.
Of course you can, it's just a regular sale. Do you plan on buying the property? You'll have a hell of a time trying to make any money trying to sell it to an investor, there's no equity left with that price spread.
Actually, I know someone that may buy it as a rental property.( the house can rent for $900-1000/month, with mortgage payments of around 350/m. pretty good cash flow). I just wanted to understand how can I still make some money if I make the transaction happen.
No problem......until the agent, if they are any good, ask for your POF before the seller signs the contract.
The agent actually asked for POF. well, we can provide that but our intentions are not to buy the property. I know someone that may purchase as a rental ( $900-$1000/m) using a mortgage loan. Payments should be around $350/m. so it's pretty good cash flow even after maintenance and other. I'm just not sure how do I make some money if I make this transaction happen?
trying to get around an agent at this point will probably not be a good idea. They have contracts in place or they wouldn't have listed it. Don't you have a contract with your agent as well?
No contract with our agent at this point because we were communicating directing with the owner with the intention to put them under contract for a wholesale deal, no agent involved. Now that the owner wants to absolutely use an agent, I was wondering if I can still wholesale the house, double close, or any other creative exit plan.
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
@Beni Fernand the answer is yes you can still make an offer, but it will have to go through the agent because they probably signed a listing contract with that agent. I don't know a realtor that would recommend to a client to agree to an assignable contract, but it costs you nothing to try.
I had to read your post a few times over. Ok, you are basically trying to wholesale the deal?
Just add a and/or assigns to the Letter of Intent/contract.
The way you have to look at it is you won't have found out about the listing if the listing agent didn't put it up and you wouldn't have to be able to get in if your agent didn't show you the property.
So, if you have to ensure that all parties get their piece of the deal and if the deal is juicy enough then there shouldn't be a problem.
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
8y
@Beni Fernand using an agent to get access to deals and going behind their back is a dishonest business practice.
Listing agreements have a specific time period, so you usually can't just cancel them. Some listing agreements also require the seller to pay the agent for a specific period of time after the agreement expires. Or they specify in the agreement if the buyer contacted the seller during the listing period, then the agent is compensated.
The agent asked for POF because when you sign a contract to buy a property, they want to make sure you can actually close. If you have no money or way to get financing, then don't sign the contract. I am doubtful any agent will agree to an assignment clause. Most realtors use standardized forms that protect against this type of thing.
Stop wasting their time and stop using realtors. Send letters and knock on doors. Pay for your own marketing.
Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
8y
@Beni Fernand, a lot of Wholesalers are forced to "double close". ie. If the Contract is deemed non-assignable, you pay for the property as promised on your Contract (and take Title), and then you can immediately re-sell it for whatever price you've negotiated with your end-Buyer.
Yep, that'd be more costly than you'd prefer. But, you take that into account before you even sign the Contract, right? Good luck...