Trading commissions for equity position " Denver "

5 Replies

I am currently a licensed agent out of Denver and am curious what kind of value it would add if I applied my closing commissions towards a fix n flip deal. I know how expensive financing is and I would be contributing "about" 2.8% of purchase price and "about" 2.8% of closing price. Is 5.4% enough skin in the game? Have any of you ever done a deal like this? and if so, how did it work out? I would love to hear your thoughts and opinions as well.

Dustin Frank, Real Estate Agent in CO (#FA 100073207)
720-591-2743

Could be a good way to guarantee that you will get the end listing.  Generally, be careful who you partner with .

I personally wouldn't do it. You never know how a flip is going to turn out unless you do it yourself. 5% is nothing on a flip. If I find a flip for a client, and he/she doesn't list with me on the back end, then I don't find them any more. There are plenty of investors that will get you paid on both sides. 

I am trying to obtain an equity position in a flip but do not currently have capital to throw at a deal. How can I make myself more valuable?

Dustin Frank, Real Estate Agent in CO (#FA 100073207)
720-591-2743

@Dustin Frank if you can put the commission into the deal you can take the commission out of the deal and save it to be combined with other commissions unit you have funds for a deal. That is the most basic and straightforward way. If you find a really good deal you can partner. The downside of that approach is that you are risking your license because it could be construed that you took advantage of the seller by not getting them the best price if the deal was off-market. 

The best and "easiest" way to get in the game is hustle and make lots of money and then put that money to work in Real Estate. 

Originally posted by @Dustin Frank :

I am trying to obtain an equity position in a flip but do not currently have capital to throw at a deal. How can I make myself more valuable?

 Find a real deal and you'll find the money. 

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