Flipper · Phoenix, AZ · Member since 2009 · 973 posts · 679 votes
16y
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
Description
contract information (closing date, purchase price, etc)
A list of needed repairs, with 2 or 3 contractor estimates maybe?
Rent prices
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.
: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
Real Estate Investor · Huntsville, AL · Member since 2010 · 44 posts · 11 votes
16y
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.
Flipper · Phoenix, AZ · Member since 2009 · 973 posts · 679 votes
16y
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
Description
contract information (closing date, purchase price, etc)
A list of needed repairs, with 2 or 3 contractor estimates maybe?
Rent prices
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.
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
Real Estate Investor · Huntsville, AL · Member since 2010 · 44 posts · 11 votes
16y
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?
Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes
16y
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?
Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes
16y
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.
Flipper · Phoenix, AZ · Member since 2009 · 973 posts · 679 votes
16y
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.
Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes
16y
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.
Flipper · Phoenix, AZ · Member since 2009 · 973 posts · 679 votes
16y
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.
Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
16y
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.
Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes
16y
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!)
Real Estate Investor · St. Petersburg, FL · Member since 2010 · 63 posts · 40 votes
16y
I flipped a property on Ebay a couple of years ago, although it wasn't an assignable contract. I purchased the property and ran it as a straight auction with the highest bidder getting the property. I had in the listing a certain dollar amount for the ernest deposit. I sold the property in 10 days.
You can put a property on Ebay with an assignable contract. You have to put it in your description along with all other due diligence.
You can also sell real estate notes on Ebay. They would be in the category under real estate "other". Same applies for due diligence.
Ebay has auction format, buy it now and classified ad sections. When selling real estate on Ebay, you are really only advertising your property on Ebay. The potential buyer will still have to sign the purchase contract, etc. by overnite mail along with deposit.
I plan on selling real estate again on Ebay, but this time I'm going to have a set price for the property and run it as auction style for the down payment.
You can have the buyer bid for the "assignment fee". It's really the sellers choice.
To get more information, go to Ebay, scroll down to the bottom and click on site map. Then click on the category of real estate. You can find all the info there.