Cheshire, CT · Member since 2013 · 2 posts · 0 votes
Hello everyone,
So I am speaking to someone who is trying to sell their home. He lives like 2 miles away and his house is in great shape. I am offering my "services" to him for a 15% commission of the final sales price. How can I find a great list of investors? Maybe here? I plan to create a slide show like this
What kind of contract do I need for this type of deal? Can I write it myself or would it be better to have my attorney do it? I would really appreciate anyones help on this subject. I plan to create a LinkedIn account and start making connections with many people in the real estate industry.
What is the best route to get the house sold within 6 months?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
13y
1) I'm sure you're violating the licensing laws of your state.
2) 15% is a stiff commission, and I'm sure the seller will realize that at some point, let alone not getting the MLS exposure a 6% agent would provide.
3) Advertising your "service" on LinkedIn will get you exposed to authorities quicker, especially by all the RE agents you're trying to network with.
From your description, your services sound like you are offering real estate brokerage services without a license. Acting as an agent without structuring the deal properly can get you in trouble.
Yes investors can write their own contracts once they learn the elements of a contract. I often modify contracts as needed for a particular deal. Based on your questions you probably don't yet have the knowledge to write a contract yourself. There are contracts you can download in the fileplace under the resources tab above. However you should probably run them by an attorney anyway.
A property should sell much faster than 6 months. Something is wrong if it takes that long to sell. Listing a property at the right price is the best way to sell homeowner properties. Your own buyers list and marketing or an auction is the best way to sell investor properties.
Cheshire, CT · Member since 2013 · 2 posts · 0 votes
13y
Thanks Ned,
I will make sure I look into this. I do have a lot to learn and I am very eager to learn as much as possible. I am very interested in finding a mentor to work with and I would be happy to trade work for your advice and coaching if you have a couple hours each week.
I do have one more question, what is the best property value estimator to use?
I do have one more question, what is the best property value estimator to use?
The Multiple list service is the best. Public records with acutal sales prices is next best. . You cannot use any automated value estimators like Zillow's Zestimate. They simply are not accurate enough. To really know values you need to learn you market and that comes from going out and looking at properties and evaluating deals.
You said they are trying to sell their house, did they have it with a Realtor or did they have it as a FSBO or did they just decide they wanted to sell and started talking with you?
How did you find them? Are you marketing or do you have a prior relationship of some sort with this person?
If it is truly in "great shape" then they probably should be listing it with a legit RE agent that can put it on the MLS and get full retail exposure. Now that doesn't mean there aren't ways you can work the deal, but practicing real estate brokering illegally is not the way to do it.
Sounds like you could do a Lease Option on the place. Since you obviously do not have experisnce with this technique I would recommend learning a little about the basic concept then if you want to try it do a Wholesale Lease Option where you just assign the paperwork to the tenant buyer and seller and just get to keep the option deposit as a fee.