I am looking to purchase a property that is either an owner carry scenario or lease with option to purchase. To try and help locate the property, I was hoping to have a real estate agent send out an email in the mls on my behalf indicating that I'm in the market for a property that offers one of these terms.
Any ideas as to how I approach an agent about sending out the email? I know realtors in my area who've done it for clients, however, I'm not sure what the arrangement is and what the incentive is for the agent. Thanks!
Hi @Henley H.
There is a search option for "Type of financing " in our MLS so I would guess yours has it as well. So you just have to find an agent. I will say that in my experience an owner carry wants 20% down to hold first position. So make sure you have that plus the cost of the agent ready to go. If you are looking at a zero down and having an owner just hold the note, please be careful. First off it will be hard to find and second when you find it there is a reason nobody else wanted it at 20% down, so there is a whole lot of risk somewhere.
@Henley H. I have acquired 15 Units in the last 2 years through either owner carry or lease option. I do not use a realtor. When I started I had no money to work with so I contacted every FSBO sign and online ad in the area and simply asked why they were selling. Many people need someone to do something fast for them because of there situation and waiting for an all cash buyer isn't happening fast enough for them. Once I explained the benefits of what I could do for them, many felt like it was a blessing. They had never heard of anything like what I was offering them and they gladly let me control their property in exchange for monthly payments and a promised delayed full cash out with $0 DOWN!
At first it was a lot of cold-calling but I had more time than money so I used my most abundant resource. Now that I have good passive income, I have been able to implement systems that eliminate the need for cold-calling. Also, once people started seeing what I was doing I got a lot of seller leads from word of mouth referrals.
I have nothing against agents or the MLS but I don't think that is the most effective strategy for this type of deal. Most sellers on the MLS are looking for full purchase price and anytime you involve an agent they need to be compensated and rightly so. However, I don't want to discourage you from trying this. There is a million ways to find LO deals. I'm just telling you how I got started with literally nothing in the bank and a phone in my hand. Good Luck! I believe you can do it!
A realtor can benefit from seller financing or LOs by facilitating the future transaction one the buyers get financing. A better way is to partner with a Realtor, often times they can make more on the option deposit than their agent fee.
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