Has anyone ever done this? Successfully? Can anyone think of how the assignment process would work using EBay as a wholesale tool? Thanks, Dan
I guess advertise it in the real estate section and just say the contract is ready to be assigned at XXXX dollars. Now there is something I never did!
:D Thanks Bill. But would you put it in the EBay classified section or in the auction section? If in the auction section how would you determine minimum opening bisbid? Dan
Very different idea.....I kinda like it. Two questions you need to address:
1. How would you develop your credibility?
2. What legal ramifications are there?
What you are suggesting is possible....but there are some legal hurdles that will need to be overcome and spelled out clearly in your advertising/posting. Let us know how things turn out.....very interesting.
I'm also interested.
I would make the bid my assignment fee. Minimum bid would simply be the minimum amount of profit you're willing to take.
In the ad would be:
A lot of pictures
contract information (closing date, purchase price, etc)
A list of needed repairs, with 2 or 3 contractor estimates maybe?
It's an interesting idea. I see a lot of homes advertised where you are bidding on the down payment instead of the purchase price, so I wouldn't think it's much different then that.
Please do update us on how this turns out.
Hopefully Ebay has a different fee structure for RE than their regular auctions. Ouch!
Paypal fees could add up too unless the method of payment was cashier's check only.
Might be worth it considering the large audience and listings do rank in google searches.
I'd also like to hear how this turns out.
Dave: What would those legal hurdles be?
I'm glad someones liking the idea. But who would you contact to find out what the "legal hurdles" would be? EBay legal Dept.? Any state Real Estate commission? I mean wholesaling in itself is legal in all states, and EBay should not have a problem with posting a real estate description as long as it fits into their policies. But we are discussing combining cyberspace with a wholesale agreement here. Dan
This would also be like trying to sell real estate notes on EBay-wouldnt it? Or no because a sales agreement is invoved? I have never seen notes for sale on EBay
Just to play it safe, I would discuss what you're doing and how you're doing it with a real estate attorney. Probably wouldn't hurt to match up what info you get from that attorney to Ebay guidelines/policies/restrictions. Certainly do wish you this best....would you limit to U.S. only or U.S. and international?
This is an interesting idea. Would ebay be the marketing tool and then you will get the document signed by the buyer? Or does ebay have some provision for the signing of contracts?
Dont know yet if they do have special provisions on this. But i did find out from ebay that they allow notes to be sold on their site. Dan
If wholesaling is legal in all 50 states Ebay policies would be the only legal hurdle wouldnt it?
Interesting idea. I have heard of craig's list being used, but not ebay. For a wholesale fee to go on a public bidding format could work out nicely.
There is an old law called the "statute of frauds" that required certain types of contracts to be in writing. Most states have amended this in some way or the other but you may still run into it if you try to sell real estate online unless you can figure out a way to get it signed.
I am somewhat hopeless with technology so I do not know whether this is an easy problem to solve or a difficult one. But I really like the idea of being able to wholesale properties to a worldwide audience - provided the signing and payment issues can be solved.
But I really like the idea of being able to wholesale properties to a worldwide audience - provided the signing and payment issues can be solved.I agree.
I would like to see this go into play.
I have heard of people using this in the past to sell real estate, however none were assignment of contracts.
I would like to see this tested
I think the contract issue is a pretty easy one. It wouldn't be any different than selling on craigslist or any other outlet. The buyer would simply have to contact the seller, and do all the paperwork by fax or email.
I see. I have never used eBay so I thought it might be some kind of auction site that automatically collects the money from the buyer and pays it to the seller.
Nope, they provide the service, but the payment arrangements are between the buyer and seller. Usually it's PayPal, as PayPal guarantees the transaction. But it's also possible, ill-advised as it may be, to send or take checks, cash, money orders etc.
I think I might give ebay a shot at selling a contract. I'll let you guys know if I do.
Couldn't Ebay just be used to set the price somehow and let the closing happen at a title office?
Ebay's real estate policies are at http://pages.ebay.com/help/policies/real-estate.html
I don't see anything prohibiting it, except listing fees are $100-$150.
i've heard larry goins pitch his course, and he's big on selling properties owner financed on ebay. it's a little different than what you're doing, but the idea is similiar. he puts up the pics, and starts the bid for the downpayment at 0 with no reservce. not sure how this would work for assigning, but i could see how that would certainly drum up interest, and since it's not your property, you don't HAVE to get a certain amount right? i'd just do what larry does and take the profits that the ebay bidders warrant.
Great ideas and information, Bryans and Marc. I wish I could vote for your posts - nothing happens when I click it.
I would love to see how it works out for you when you actually try it. It is an interesting concept and, if it catches on, could potentiall subvert the entire MLS-based system. (I am sure Bryan H would love that!)
Good luck and keep us posted.