OfflineHello Everyone,
I am a newbie to this site, and the forums. I just completed reading Dean's Book, "Profit From Real Estate Right Now", and was very excited about getting started investing in real estate. I wanted to start using Matt Larson's 25:1 approach for making offers through a real estate agent, but I wanted to know if this technique also applies for making offers on Realtor listed properties? The reason I ask is, how do you get a listing agent to go along with you tying up their listed property without deposit money, or having to personally apply for financing on the property while you're trying to find your buyer to IEE or assign the contract to? When you tie the property up on contract, it seems like you need a certain amount of control over the home to market it during your "tie up" window (such as open houses, etc.) Does a listing agent really allow you to do that? Or should I just be focusing on FSBO's and bank-owned foreclsures (where the property is vacant) for using this technique? I would appreciate any words of wisdom you can share on how to deal with this issue. Thanks!
Craig
I am a newbie on the site and I have wondered about this exact same topic. Any advice would be extremely extremely helpful!
Derek Maples
"For He must increase and I must decrease" John 3:30
Hi Craig and Derek,
That depends....if you are making an offer on a REO that is listed with an agent, then they really do not have much say in it. The bank is the one controlling the sale and MOST of the time they will allow you to just send a copy of the earnest and pay it when there is an agreement, or at closing. If you are looking at properties that are listed with agents that are not a Short Sale or Reo, then you would need to state in the contract that the earnest money would be put into an escrow account within _____ days of the signed agreement, or you could do a promissary note (as state in another thread) that you would pay earnest at closing. Sometimes this works and sometimes it doesn't, it just all depends on the agent and the home owner. They may want the earnest upon aggreement but if you have a POF or an LSR that shows you have the money, sometimes they will allow you to wait until the close of escrow. The agents are trying to make money, and usually the home owner just wants out, so they want to sell the property just as much as you want to buy it!
Hope this helps,
Rhamel and Niki
Hello Rhamel and Niki,
Thank you very much for your reply and insights. Just a follow-up question if I may. Is the listing agent going to expect you to apply for financing and get loan approval in a certain # of days after signing the purchase agreement, even though your objective is really to IEE or assign the contract to another buyer? Also, how do you show the property to your prospective assignees while the property is still under the control of the seller's agent? Thanks again for your help.
Craig