marketing for tenant buyers for lease purchase {options}??

8 Replies

Hello everyone... Im having difficulties in getting a straight answer about is it considered brokering if I market for tenant buyers before having a property under contract..i have gotten conflicting answers .I am not a realtor so i want to do things the right and legal way.. thanks in advance.

I'm not a realtor; I'm not a lawyer; but I am confident you can advertise for tenant/buyers without having a specific property in mind.  The next time someone tells you that is illegal, ask them to link you to the specific law in the local code that states this.
That said, you're putting the cart before the horse.  Your time and effort needs to be on find the deal, which is always the more difficult part of the deal.  Once you have a property under wraps, unless your marketing is inadequate or your terms are out of line, the tenant/buyers will respond.

Hi, I was having the same issue! I’m so confused about the situation. What I been reading through post that u can’t advertise a property that u don’t own because it considered brokering. Does it vary by state by state basis? I have another question I’m a little confused on? What is a difference between cooperative lease option and assigning a lease option to a tenant buyer? Is it the same? I really want too do this strategy, but a little afraid of the unknown. Really want to take action but the little details that I can’t seem to get a straight answer too. I really want to start with strategy. Please help

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It is my understanding that you first need to be a principal in the transaction before you have an interest in the property. Advertising someone else's property, in some states, would be considered brokering. If you have it under contract or you have a lease option on the property, you can assign your position or lease / option the property to someone else. This is my understanding, not legal advice. BTW, unless someone files suit, it doesn't really matter if you are not a licensee.

Thanks Anthony, makes sense, I guess I'll just start trying to get my tenant buyers list moving in the right direction. I appreciate everyone's input. 

Hsy lakeesha.i know what your going through..

I found the best thing to do is keep it simple .take one step at time but you have to take action or the unknown will eat at you and before you know it time has flown by and your still sitting there asking what if.

Just start calling seller what do u have to lose nothing!!..Good luck 

I place a "dummy" ad for a run-of-the-mill property in town.  3BR, 2BA, 2000sf, median price, median rent. I advertise it as a rent-to-own.  I receive emails and texts from potential tenant/buyers. I mention the property is no longer available, but "if this is something you are interested in, I'll keep you in mind for future opportunities."  This is illegal?  I call shens.  It's a way to build a t/b database if that's something you want to do.  And until the Real Estate Police come kickin' down my door, I'll continue to carry on.

Hey Michael what's up,thanks for your response.thats exactly what I'm planning on doing and agree about the so called "Real Estate police". 

obviously I'm contacting sellers daily..

Would you think bandit signs for this as well or just Craigslist?

I'm not a fan of bandit signs, although I'm sure others are.  City code police will usually make short work of those signs.  Online ads will reach more prospects with less effort and expense.  Craigslist is but just one site.  Facebook Marketplace is wildly popular.  Other sites, as well.  Do some research, Anthony, and you'll find no shortage of sites where you can advertise.