OfflineHello Folks - I received a call from one of my bandit signs the other day. The homeowner is actually a rehabber investor as well. My intent was to get it under contract and assign it to one of my cash buyers. I met with the seller today. Seems like a good guy. He has several other deals in the works. Anyway, he planned on rehabbing it himself and has architectural plans but now needs cash for another deal and therefore wants to dump this quick before doing any work. Here's the rub - Rather than go the normal route and have me get the assignment fee from my buyers after he signs my purchase contract, he'd prefer to pay me the fee himself and will draw up a contract on his own that says as much. Has anyone ever run into a situation like this?
Thanks for your thoughts
Best of luck
He wants to pay you a finder fee to bring a buyer? What do the numbers look like?
I am going out on a limb here, but is there any possibility he may be looking to "Meet" your buyer and add more deals by cutting you out? The seller may need to build his “Cash Buyer” list. Just a possible concern I thought I would bring up. I believe that the bottom line is to keep our money in our pocket next to helping our clients. What is your relationship with your buyer? I may be wrong and I am interested in hearing others opinions.
Randall Budde
http://centralparealestate.usapropertywholesale.com/
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There are lots of creative ways to do business. A question is, why doesn't he want to just sign your purchase agreement? And what will be in the contract? There is not enough info yet to know if this is a good situation or not. Find out exactly what he intends to put in the contract and post again. If you make money and its all legal, why not?
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Gena.
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You wrote he is going to sign YOUR purchase contract,but then you write he is drawing up the contract on his own. which ever way its done, agree on the fee you want and read the wording of the contract if its his contract and not yours. make sure your not being held to anything if you do not find a buyer within the time frame. Tell him what you want in the contract if you choose to let him use his contract. always protect yourself.
good luck
Richie
"I am going out on a limb here, but is there any possibility he may be looking to "Meet" your buyer and add more deals by cutting you out?"
He will know the end buyer when the transaction closes anyway. If he writes up a contract in his favor, he may word it so that he can sell to another buyer if he finds one before you do, thus retaining control and not risking having the property locked up and you failing to find a buyer. Take a look at his contract and proceed accordingly. However,you know there are going to be clauses in his favor if he is wanting to draw it up.