How to avoid wasting time showing the house to buyers?
Rental Property Investor · St Louis, MO · Member since 2010 · 317 posts · 72 votes
How to avoid wasting time showing the house to buyers?
Most Popular Reply
Real Estate Investor · Shelton, WA · Member since 2013 · 369 posts · 639 votes
9y@Paul Winka Easy. Stop marketing it before you own it. Close on the property and then show it to whomever you'd like.
25 Replies
- Real Estate Investor · Shelton, WA · Member since 2013 · 369 posts · 639 votes9y
@Paul Winka Easy. Stop marketing it before you own it. Close on the property and then show it to whomever you'd like.
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes9y
First thing I'd check is to make sure it is legal in your state to show the property to prospective buyers. Some places it is a no no, as you are selling an interest in a contract and not a property.
District Invest Group545 Reviews - Rental Property Investor · St Louis, MO · Member since 2010 · 317 posts · 72 votes9y
Originally posted by @Account Closed:
@Paul Winka Easy. Stop marketing it before you own it. Close on the property and then show it to whomever you'd like.
Thanks for the advice, but I prefer to keep my money out of this and just assign the contract since this is my first deal. If I eff this up, I may not get to my second deal. Are you saying that the average deal you do is to do A to B with the seller and then do B to C with a buyer possibly weeks later to be able to show the house?
- Rental Property Investor · St Louis, MO · Member since 2010 · 317 posts · 72 votes9y
Originally posted by @Russell Brazil:
First thing I'd check is to make sure it is legal in your state to show the property to prospective buyers. Some places it is a no no, as you are selling an interest in a contract and not a property.
What would be the best source to find that out normally? Call a real estate attorney's office with that quick question? For the state's real estate commission, I would expect at knee-jerk "no!". Thanks!
- Real Estate Investor · Lake Jackson, TX · Member since 2016 · 149 posts · 49 votes9yPaul, I would suggest having set viewing times for potential buyers. If the owner is still in the home have them to okay those time frames as well.
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes9y
@Bill Gulley may know if it is legal to show the house before taking title.
- Wholesaler · Plantation, FL · Member since 2014 · 194 posts · 121 votes9y
@Paul Winka I like to do several things when I know I'm going to wholesale the house.
1. I ask the buyer if I can take pics and video, then I upload the video to Youtube and then blast the property to my buyers they get clear photos and a wonderful video. I can't tell you how many houses I've flipped to buyers site unseen.
2. While locking up the contract tell the owner in advanced you'd like to schedule a time to have your funding partner or contractor to come back and see the place. Works like a charm and good luck to you!
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes9y
Another dishonest BP poster...suggesting lies to the seller. Ever wonder why unlicensed brokers are looked at in a poor light?
From carlos coppin jr:
"2. While locking up the contract tell the owner in advanced you'd like to schedule a time to have your funding partner or contractor to come back and see the place. Works like a charm and good luck to you!"I wonder if he uses the same tactics to put houses under contract: re "partners".
I call these people scammers and for good reason!
- Real Estate Broker · Manchester, NH · Member since 2014 · 630 posts · 420 votes9y
Hi @Paul Winka. Congratulations on getting a property under agreement. However, be aware that it sounds like you are violating the law right now.
There are two situations where you are allowed to market a home:
1) You own the house (the deed needs to be IN YOUR NAME)
2) You are a licensed real estate agent with a signed contract from the owner of the house
If you are not one of those two things, you should NOT be posting this home as for sale on Craigslist or other means like that. That is practicing real estate without a license; which is illegal.
In addition, you should not be showing the home to prospective purchasers. At least in NH, showing a home without a real estate license is considered practicing real estate without a license. Once again, that's illegal.
Wholesaling can be questionable in regards to real estate laws, so you really should spend the money and time to talk with an attorney well-versed in this area who can advise you on how to wholesale properties while still staying within the lines of the law.
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes9y
@Bill Gulley may know. He lives in MO.
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes9y
You don't need a license to operate as an unlicensed broker except for a drivers license (according to one BP poster). Getting a license takes time, effort, and money. Then once licensed, agents are held accountable. Read through all the BP posts about all the lies and frauds these scammers pull. They are not concerned with following any laws..only getting the fast buck.
- Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes9y
Can you state the law that it is a CRIMINAL OFFENSE to act as an unlicensed agent?
Here are the definitions:
http://www.leg.state.fl.us/Statutes/index.cfm?App_...
(a) “Broker” means a person who, for another, and for a compensation or valuable consideration directly or indirectly paid or promised, expressly or impliedly, or
with an intent to collect or receive a compensation or valuable consideration therefor, appraises, auctions, sells, exchanges, buys, rents, or offers, attempts or agrees to appraise, auction, or negotiate the sale, exchange, purchase, or rental of business enterprises or business opportunities or any real property or any interest in or concerning the same, including mineral rights or leases, or
who advertises or holds out to the public by any oral or printed solicitation or representation that she or he is engaged in the business of appraising, auctioning, buying, selling, exchanging, leasing, or renting business enterprises or business opportunities or
real property of others or interests therein, including mineral rights, or
who takes any part in the procuring of sellers, purchasers, lessors, or lessees of business enterprises or business opportunities or the real property of another, or
leases, or interest therein, including mineral rights, or who directs or assists in the procuring of prospects or in the negotiation or closing of any transaction which does, or is calculated to, result in a sale, exchange, or leasing thereof, and who receives, expects, or is promised any compensation or valuable consideration, directly or indirectly therefor; and all persons who advertise rental property information or lists.
A broker renders a professional service and is a professional within the meaning of s. 95.11(4)(a).
Where the term “appraise” or “appraising” appears in the definition of the term “broker,” it specifically excludes those appraisal services which must be performed only by a state-licensed or state-certified appraiser, and those appraisal services which may be performed by a registered trainee appraiser as defined in part II.
The term “broker” also includes any person who is a general partner, officer, or director of a partnership or corporation which acts as a broker. The term “broker” also includes any person or entity who undertakes to list or sell one or more timeshare periods per year in one or more timeshare plans on behalf of any number of persons, except as provided in ss. 475.011 and 721.20.
(b) “Broker associate” means a person who is qualified to be issued a license as a broker but who operates as a sales associate in the employ of another.
(j) “Sales associate” means a person who performs any act specified in the definition of “broker,” but who performs such act under the direction, control, or management of another person. A sales associate renders a professional service and is a professional within the meaning of s. 95.11(4)(a). - Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes9y
They vary state to state. There are quite a few posters looking to make fees or commissions with no legal interest in the property. Add on the shenanigans and deceptions like posters in this thread promote and it is quite evident why many choose to work around laws rather than get a license.
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes9y
In Florida it is a 3rd degree felony.
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes9y
As to the OP, does it appear they are brokering a contract...OR...a house? This is the typical game. Some states have gotten wise and others are still wide open. The unlicensed brokers that try to "piggyback" and make a commission on a contract they don't own are another open and shut case of brokering without a license. They are all over BP. Many promote dishonest practices like one of the posters above. As Jay Hinrichs says...it is the wild west:)
- Investor · Virginia Beach, VA · Member since 2016 · 90 posts · 49 votes9y
I never understand how folks can advertise houses on Craigslist. If I was a seller and knew someone was assigning my house, I would be PISSED if I saw it on Craigslist. Nothing towards you, I just like to mention it when I see someone mention advertising on Craigslist.
Is the house vacant? Usually its a lot easier to get buyers in and out a vacant home if you have a lockbox that you can put a key in. Also, please don't say "I'm bringing my contract and inspector through" when in reality it's a potential buyer.
If the seller is living in the house, just take as many pictures and videos as you can.
Does the seller know you are assigning it, or does he believe you are purchasing the house yourself?
- Real Estate Agent · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes9y
Purchase offer and emd deposit required before inspection .Buyer shall have 7 days for due diligence after accepted contract Proof of funds required
- Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes9y
Originally posted by @Paul Winka:
Originally posted by @Account Closed:
@Paul Winka Easy. Stop marketing it before you own it. Close on the property and then show it to whomever you'd like.
Thanks for the advice, but I prefer to keep my money out of this and just assign the contract since this is my first deal. If I eff this up, I may not get to my second deal.
So you are not confident enough that it is a deal to put your own money into it, and yet you have promised the seller that you will find a buyer and are perfectly happy to use another buyer as a guinnea pig to see if it is a good deal!? And people wonder why wholesalers get a bad name ... and wholesalers wonder why they can't get any respect or returned phone calls from experienced cash buyers ... this sort of attitude MAY have something to do with it ... this is not a sound way to start your investing career, Paul. Your reputation is more valuable than your second deal.
- Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes9y
Advertising real estate for sale or lease for an owner requires a license, for an owner to advertise a property for sale or lease they must hold legal title in Missouri just like all other states, the wording varies but that intent remains very basic.
Equitable title is conveyed by a sale contract, but that is not sufficient to advertise the property or to "show" it.
You can look at the FTC regulations concerning advertising real estate, that trumps any state law.
From my GREA site copied from the reg.
The Fair Trading Act governs real estate dealings, anyone along the way in a real estate transaction must not mislead or deceive, intentionally or even unintentionally in what they say, agree to or act upon. The relevant Sections of the Act are 9 and 14 (1) (b).
Section 9, is rather simple, “No person shall, in trade, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.
Section 14; “(1.) No person shall, in trade, in connection with the sale or grant or possible sale or grant of an interest in land or with the promotion by any means of the sale or grant of an interest in land, -
Make a false or misleading representation concerning the nature of the interest in the land, the price payable for the land, the location of the land, the characteristics of the land, the use to which the land is capable of being put or may lawfully be put, or the existence or availability of facilities associated with the land.”
Now, for those who can't understand English or Real Estate, "Characteristics" of land include title, title rights and the right to convey title.
Any idiot that would read an advertisement for a property for sale will assume the owner is advertising, if it isn't that owner who holds legal title to convey, then that is a false and misleading representation, just as clear as the nose on anyone's face!
Unless you hold a real estate license, if you advertise real property that you do not have legal title to you are in violation of federal law! :)
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes9y
Fact is few people care about federal laws when it comes to brokering real estate without a license. Florida law does allow people with equitable title to advertise their interest in the property. Some states specifically prohibit advertising a property under contract without a RE license. The simple solution most of these operators ignore is to take title. Once you own it you are free to proceed as your please. Get funding and then make offers. Simple!
p.s.-Florida requires a "reasonable" amount of earnest money. $10 on a 500K house does not give equitable interest.
- Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes9y
Originally posted by @John Thedford:
Fact is few people care about federal laws when it comes to brokering real estate without a license. Florida law does allow people with equitable title to advertise their interest in the property. Some states specifically prohibit advertising a property under contract without a RE license. The simple solution most of these operators ignore is to take title. Once you own it you are free to proceed as your please. Get funding and then make offers. Simple!
p.s.-Florida requires a "reasonable" amount of earnest money. $10 on a 500K house does not give equitable interest.
Yes, but that was to advertising, not the act of brokering so much. And yes, there are instances where states or better the MLS bunch, allow advertising but with specific language that discloses the party advertising doesn't own the property. IE: "Subject to prior settlement" or may be "owner conveyance pending". Otherwise, without specific notice that the property isn't owned yet by an advertiser, you then imply you have the right to convey good title, but you don't and that would be in violation of the advertising and trade representations as mentioned. :)
p.s. and no, ten bucks isn't sufficient anywhere, thing is there has to be an objection or action brought to recognize that, if the parties continue without a hitch then they move on. The issue is that often there is a hitch in deals, so if you want to ensure that your contract will stand up, use more money.....or, an earnest money note! :)
- Rental Property Investor · St Louis, MO · Member since 2010 · 317 posts · 72 votes9y
Originally posted by @David Faulkner:
Originally posted by @Paul Winka:
Originally posted by @Account Closed:
@Paul Winka Easy. Stop marketing it before you own it. Close on the property and then show it to whomever you'd like.
Thanks for the advice, but I prefer to keep my money out of this and just assign the contract since this is my first deal. If I eff this up, I may not get to my second deal.
So you are not confident enough that it is a deal to put your own money into it, and yet you have promised the seller that you will find a buyer and are perfectly happy to use another buyer as a guinnea pig to see if it is a good deal!? And people wonder why wholesalers get a bad name ... and wholesalers wonder why they can't get any respect or returned phone calls from experienced cash buyers ... this sort of attitude MAY have something to do with it ... this is not a sound way to start your investing career, Paul. Your reputation is more valuable than your second deal.
I don't want to start my investing career the wrong way. I was under the impression that one of the advantages of wholesaling is that you don't have to get your own money involved. Okay, I am wrong. How would this change if I had a r/e license? Is it possible to market the property for the seller for a fixed fee as a non-brokered transaction without buying it?
- Rental Property Investor · St Louis, MO · Member since 2010 · 317 posts · 72 votes9y
Originally posted by @Bill Gulley:
Advertising real estate for sale or lease for an owner requires a license, for an owner to advertise a property for sale or lease they must hold legal title in Missouri just like all other states, the wording varies but that intent remains very basic.
Equitable title is conveyed by a sale contract, but that is not sufficient to advertise the property or to "show" it.
You can look at the FTC regulations concerning advertising real estate, that trumps any state law.
From my GREA site copied from the reg.
The Fair Trading Act governs real estate dealings, anyone along the way in a real estate transaction must not mislead or deceive, intentionally or even unintentionally in what they say, agree to or act upon. The relevant Sections of the Act are 9 and 14 (1) (b).
Section 9, is rather simple, “No person shall, in trade, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.
Section 14; “(1.) No person shall, in trade, in connection with the sale or grant or possible sale or grant of an interest in land or with the promotion by any means of the sale or grant of an interest in land, -
Make a false or misleading representation concerning the nature of the interest in the land, the price payable for the land, the location of the land, the characteristics of the land, the use to which the land is capable of being put or may lawfully be put, or the existence or availability of facilities associated with the land.”
Now, for those who can't understand English or Real Estate, "Characteristics" of land include title, title rights and the right to convey title.
Any idiot that would read an advertisement for a property for sale will assume the owner is advertising, if it isn't that owner who holds legal title to convey, then that is a false and misleading representation, just as clear as the nose on anyone's face!
Unless you hold a real estate license, if you advertise real property that you do not have legal title to you are in violation of federal law! :)
Hi Bill,
The bottom line is that I should just get a r/e license and I should be good? I would just need to find a broker that is okay with any transactions that most people would consider wholesaling?
- Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes9y
Originally posted by @Paul Winka:
Originally posted by @Bill Gulley:
Advertising real estate for sale or lease for an owner requires a license, for an owner to advertise a property for sale or lease they must hold legal title in Missouri just like all other states, the wording varies but that intent remains very basic.
Equitable title is conveyed by a sale contract, but that is not sufficient to advertise the property or to "show" it.
You can look at the FTC regulations concerning advertising real estate, that trumps any state law.
From my GREA site copied from the reg.
The Fair Trading Act governs real estate dealings, anyone along the way in a real estate transaction must not mislead or deceive, intentionally or even unintentionally in what they say, agree to or act upon. The relevant Sections of the Act are 9 and 14 (1) (b).
Section 9, is rather simple, “No person shall, in trade, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.
Section 14; “(1.) No person shall, in trade, in connection with the sale or grant or possible sale or grant of an interest in land or with the promotion by any means of the sale or grant of an interest in land, -
Make a false or misleading representation concerning the nature of the interest in the land, the price payable for the land, the location of the land, the characteristics of the land, the use to which the land is capable of being put or may lawfully be put, or the existence or availability of facilities associated with the land.”
Now, for those who can't understand English or Real Estate, "Characteristics" of land include title, title rights and the right to convey title.
Any idiot that would read an advertisement for a property for sale will assume the owner is advertising, if it isn't that owner who holds legal title to convey, then that is a false and misleading representation, just as clear as the nose on anyone's face!
Unless you hold a real estate license, if you advertise real property that you do not have legal title to you are in violation of federal law! :)
Hi Bill,
The bottom line is that I should just get a r/e license and I should be good? I would just need to find a broker that is okay with any transactions that most people would consider wholesaling?
Paul, get your license and you'll make more money as an agent than a wholesaler, your commission can be negotiated it doesn't have to be 3 or 6 %. Besides, after learning real estate you'll forget about the guru wholesale stuff. Good luck :)
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