Is it possible to implement creative financing strategies (ex. lease options, subject to's, seller financing) when looking at a broker listed property. Or can these only be done when it is a FSBO?
Realtors are your best source for finding owners willing to do lease options, in a year how many owners do realtos speak to who dont want to pay a commission, dont want to do a shortsale who are underwater or want a better investment?
Our company LeaseOwn Homes works with realtors regularly.
You can offer 50% of your assignment fee with lease-option assignment to a realtor
I just asked the realtor to convince the seller to talk to me with the realtor present to go over the details
High days on the market houses are best to approach because their listing is about to expire
@James Wheelock You can negotiate anything! It all starts with just - Asking. I've seen no money down seller financing deals be done through a realtor where even the realtor fees were paid back on terms! Creative financing is just that, creative. Have fun and think, How-To?
Creative financing strategies are possible in either case. It just depends how you negotiate it.
Realtors are your best source of business but they want to get paid just like everyone else, they deal with owners everyday that don't want to pay commissions, don't want to short sale and want a better investment.
Also Realtors deal with buyers who don't currently qualify for traditional financing and they are walking away from these potential opportunities.
Our company LeaseOwn Homes charge a minimum 5k or 3% of the purchase price for the option fee upfront and we pay realtors up to 50% of that depending if they bring the buyer or seller or both.
Also we charge 2% per year as the balance of our option fee paid at time of purchase of the property and give the realtor 25% or 50% see above.
This motivates realtors to work with you and by taking care of realtors they will give you warm leads and will help you close them.
Again a win-win.
As mentioned by the other posters to this post, @Brian Gibbons @Griffin Fehrs @Joshua Chen , the operative word is "Creative". When you ask questions and are willing to negotiate people will listen. Yes, real estate agents are a tremendous resource to investors. Just remember to keep in mind that your offer to help solve a real estate problem is the primary objective. Lead with your offer to help and the money will follow you. So many people get that equation backward. Hope this helps.
How many listing agents are willing to say these words?
MOTIVATED SELLER - QUESTIONNAIRE CHECKLIST
The following is a list of sample questions you should ask a seller. When talking to a seller, try to ask the questions through the course of a conversation and try not to sound like you are reading from a list.
(Note: You will not ask all of these questions depending on the answers the seller gives and your investing objectives.)
Asking About The Seller And Their Property:
• Can you tell me a little bit about your home? (# of bedrooms, baths, size etc.)
• What do you like most about the home?
• What do you like the least?
• Are there any repairs needed?
• What is your sales price and how did you arrive at it?
• What do you think your house would appraise for in excellent condition?
• What do you think your property could rent for?
• Is your property listed with a real estate agent?
• If you don’t mind me asking, why are you selling?
Asking About The Existing Financing:
• Do you own the house free and clear?
• Do you know if your mortgage loan assumable?
• Would you sell the house for what you owe?
• If not, how much are you looking to get above what you owe? (Subtract that from sales price to
get loan balance.)
• How much are the monthly payment on the mortgage?
• Are the payments current?
What Kind Of Deal Can You Get:
• If I paid you all cash and closed quickly, what is the least you could take?
(Follow-up by asking if that is truly the least they would take.)
• Will you consider leasing the property to me with an option to buy if I guarantee the mortgage
payments and maintenance?
• Do you have a problem with someone living in the property until I get it sold?
• Would you consider optioning the property to me, if there is absolutely no risk or cost to you?
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