OfflineI have just finished Dean's book "profit from real estate no" and need some help figuring out how my agent, broker, and lawyer can get paid. Dean talked much about aquiring one of each, which I am in process of, then setting up my automated message, flyers, signs, ect. but I did not find any info on what amount or how they should be paid. I guess what I am asking is in what order should I complete these tasks i.e. setting up my automated system finding an agent, broker, and lawyer ect. Secondly when I find the agent, broker, and lawyer how and when do I pay them? who pays them? me or the sell or buyer? Is there a way to calculate this amount? Please help me so I can feel a little better about approaching these people and asking them to become part of my team. Thank you in advance for all your help!
Edmond,
I am in the same boat as you. To anyone who is seasoned and can give some advice: I too just completed reading Profit From Real Estate Now and 2 days ago completed reading Dean's Millionare book. I am so anxious to get started. I am drawn to Matt's 25:1 concept but I can't understand how to present this to an agent. What is the incentive for them to basically work for me? What makes me different than any other "buyer" out there and why would they want to willingly be at my disposal and do 75% of the leg work...how do I pitch this?
Secondly, I live in NY state and I am quite uncertain of how I am going to get around the legality of basically acting like a real estate agent...yet without a license. Meaning, if I am going to act as a middle man between the seller and the buyer ( an assignment), isn't this exactly what a licensed agent took all of those courses for? How do I get away with this?
Also, I too want to know if the lawyer/ broker fees are paid.
Tracy
There are a few threads that go into these points.
Some realtors are really driven and/or are hurting for business. These types of realtors will be much easier to get with the program, so to speak.
An assignment is not being a real estate agent. Rumor has it that some states have laws outlining assignments explicitly and when a realtor must be used, but no one has posted a link to the actual state statues yet to actually confirm/deny it. You are not selling the house for the seller. You are getting an offer approved to buy the house, with an option to allow someone else to take over the contract in place of you if you wish. You also have escape clauses to ensure there is no penalty for not buying or assigning the property.
You are simply giving people the option to your great deal at a small premium. When you look at it as an investor the difference from being a real estate agent is obvious. I'm not marketing a house to sell for the owner. I am marketing my deal - the house is just asset. I am not trying to sell a house as much as I am selling an investment.
See, if a home is thought of to a buyer as purely as a luxury item the buyer would pay significantly more than a house is truly worth or could be sold to the masses for if the home has everything they want in a house vs a house with the same size and niceness in the same neighborhood. A realtor sells houses. An investor is a selling a deal, a business decision. Now, plenty of private parties look at their primary residences as investments - so it's not only investors who may want your deal.
Let's say you locked up a house in decent condition at 40% below its FMV of $200k. So you have the house locked up at $120k. You want to make $10k on the deal. You market it for $130k. Investors or buyers know what is an amazing price and what isn't. 35% off FMV should get a lot of action. But you aren't selling people on every little feature worth a couple hundred or thousands of dollars, you are really selling the deal first.