I found a 4 bedroom 2 bath house today here in IN.... for sale by real estate agent. they want 90k for the house as is but could go for 120k or maybe a bit more. Its possible to do a rehab of 10k, if I can get the house down to 53k. Do I have to go through the agent or is it not a good thing go around to the owners for a flip and then possible have the same agent re-list it. Trying to get an assignment maybe an option but I need some advice. the agent said he is investor friendly and that the owners want to move to TX ...Kinda maybe keep it as a rental
once you finish your purchase thru the agent your relationship ends,you are free to sell your property by yourself rehire the agent or not
You should never go through a real estate agent when buying property unless its a HUD home or foreclosure.
In this example you can not go around the agent even if you tried, they have a listing contract with the seller and its unethical.
That is the wrong approach and getting the same agent to re-list it after cutting him/her the first time is not going to sit well. You do not want to get a bad name for yourself. Agents talk and will blackball you so can not do any business with any of them.
You always want to treat agent with the same respect you would want. You may need one of them in the future for something.
Best of luck to you.
Sounds good.... I don't want to screw anybody by know means but I thought it would be a good flip but Jim, are you saying the deal pretty much has to be bought through the agent and then flipped? is there any hope
The agent listed the house for $90K and you wanted to negotiate the house down to $53K ?
@Chris T. yea somewhere in that ballpark. I quickly crunched the ARV value for flipping a deal. So I trying to figure out the possibilities. But the house is for sale through an agent so Im trying to see if I can work anything out
Put your offer in through the listing agent. The agent wants to double end the deal and you want a good deal. Give them what they want to get what you want. You may also mention if you plan to flip it you are open to using them to list it if you are, but I wouldn't promise anything for certain. Don't say this if you intend to keep as a rental or you already know they would have zero chance of capturing the listing on the back end. Do NOT try to go around the agent to get straight to the sellers while they have an active listing contract with the agent.
If you do get the offer accepted, watch your own back in escrow and trust but verify (good idea always). Get independent inspections and bids for the work (if you intend to contract it out) during your due diligence period both to validate your repair numbers and prepare to hit the ground running COE.
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