I was driving around some neighborhoods I know and found an interesting multi family (8 units). I called up the owner and asked if he was willing to sell. He said he would, if the price was right. I asked for the P&L and what he was willing to accept. We emailed each other back and forth until we agreed on a ball park figure pending inspection, appraisal. No official offer has been made yet. Nothing has been signed.
I'm not a licensed broker and the agent I have used wasn't involved in this conversation.
I believe I will need a broker involved to get through the whole remaining set of paperwork/process that's needed to close?
Do I need to pay him the full fees, although I found the property myself and negotiated the price?
@Henri Meli , I would negotiate that with your broker. You might be able to just pay him a flat fee. I doubt the seller will cover any broker fees.
Why would you need a broker at this point? Do you have a RE contract atty? Have him draft up a PSA with terms you agree with and now the real party starts.
As @Sam Grooms mentioned you can try and negotiate a discounted fee with a broker. You might also find an attorney who can facilitate the entire deal for you, although that could be costly.
Any chance you have an experienced investor in your area who can set you up with a solid generic Purchase & Sale Agreement and help you get that part completed?
Once you have the P&S then you can take it to a title company or attorney to handle the legal and closing. I've helped and been helped with contracts for the cost of a decent lunch. Be careful though, as an inexperienced advisor can do more harm than good.
You can use a broker if you need that or do it yourself. For the contracts, pay an attorney. For the rest of the process, use the remaining part of your team (inspectors, environmental, etc). If you use a broker tell them that it's negotiated and you just need them for support. They may help you for a small fee.
Next step would be have a title company draw up necessary documents to close.
Thanks all for the responses.
@Henri Meli you absolutely don't need a broker involved. Next step would be to sign a contract between you and the seller. You can draft it yourself or use a real estate attorney. Once that is signed by both you and the seller, take it to a closing title company or seller (different states use different parties) and ask them to perform the title work and closing.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing