I'm working with my dad on a couple of leads for a flip. We've got 2 different home owners in a distressed situation that we're doing some verbal negotiation with. I've worked with a lawyer to write offers for me before, but it costs about $500 per offer. :O
Here's my question:
Is it possible for me to write offers to these homeowners myself without a real estate license? I've searched the interwebs pretty hard, and I can't seem to come up with a "blank" version of the standard California Association of Realtors "Purchase Agreement."
Does anyone have experience in this area? Are one of us required to have a realtors license to write an offer in California?
No, you don't need to be a licensed agent to write an offer in CA if you are the buyer (don't intend to assign the contract). The real binding agreement will ultimately be the escrow instructions drawn up by the escrow company ... in CA the escrow company serves the role that lawyers do in many other states. So, you can find an escrow company you want to work with, and have them draw up the offer for you. Also ask about a title binder to save you some money there on the flip.
If you plan to flip regularly, you will likely want to get your RE license anyhow if for no other reason than to save on listing agent commissions when you are done with rehab and want to sell it. You should also consider setting up a S-corp or LLC with S-corp election for liability and tax purposes, again if you plan on doing this in volume.
Thanks a lot! We've got an escrow company that's helped us out a bit, providing a farm report.
I googled "what is a title binder?" and learned a bit about what that is. I'm curious, how does this save you money?
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