DO I really need a Real estate Agent on assignment deals

is paid by the seller. Whomever hired the agent to SELL the property is the party responsible for paying the agents.

KimmyJ
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if i have an agent and the seller has an agent how do they get paid,since i would be locking the property to assign it to a buyer?

the SELLER is responsible for paying the agents not the buyer. You are the buyer, so the SELLER is responsible.

KimmyJ
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So if i get a good real estate agent and I have the agent help me with the deal before i make an offer to the seller like finding comparable homes that sold in the area on a property i am interested on how does the agent get paid then.

the SELLER is responsible for paying the agents, whether the agent represents the buyer or the seller. Your agent is going to help you find a house. The SELLER's agent advertises the house for sale. Your agent sees the house on the MLS and tell's the SELLER's agent, "I have a buyer for you." The SELLER's agent says, "Great! We accept your offer. For finding a buyer for me, I will split my commission with you." That is how your agent gets paid. He/she brought you to the SELLING agent and in return the SELLING agent agrees to spit his/her commission with your agent. You don't pay for anything. You only pay if you have an agent SELL your house for you. Don't get hung up on such minute things. You'll end up over thinking things and then paralyze yourself from taking risks and making deals happen. Good luck.

KimmyJ
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thank u i get it

That infomation is realy helpful i had the same wonders now i can move a little more this site is the best;;;

What's the right way to do Assignment of Contract i want get started asap;;;

I just finished reading Profit from Real Estate right now.
Now like some of you I have decided to do assignments to start.
I think what makes it confusing as far as paying your realtor. Is in this book Matt Larson explains assigning in detail and he clearly states he pays his realtor for bringing him assignment deals (and other deals) but what I could not find was how much he paid his agent for assignments.
So if someone knows the answer to this would be most helpful .

Can any body tell me the right way to do Assignments.

Do you have Deans book Profit from Real Estate Right Now?
It explains all about assignments except how to pay your agent that might bring you the property for your review....at least i couldnt find that answer. Other than that it explains it all

from what I remember from Dean's book, I think 1% is paid out to the agent that assisted you with the deal. If you find out anything different, let me know. I am in the beginning stages of real estate investing and Assignments is what I'm focusing on as well.

I thought Kimmy explained it pretty well, but let me try to simplify it. If your Agent finds you a deal that is listed with another Agent, and you make an offer that is accepted with an assignment clause, your Agent will carry the deal all the way to closing. If you assign the deal to another buyer, your Agent will represent that buyer in the sale, and get paid the buyers commission from the listing Agent. You will not need to pay your Agent anything. If you find a deal with a seller who is not represented by an Agent, and you want your Agent to represent you in the transaction, It will be your responsibilty to compensate your Agent. Sometimes the seller will agree to pay a fee or split the fee of an Agent in order to simplfy the transaction. Hope this helps.

Al

Wow. Awesome response. That sheds a lot of light on how the realtor gets paid. One more thought though. If the seller is not represented by a realtor and is selling FSBO...they are anticipating paying a buyer's realtor 3% or so upon sale. So, if I show up with a realtor who found the deal for me, I would think the seller would still pay my realtor their 3% for that.....instead of me having to pay the realtor out of my profits.

what do you think?

Sonriffic

If the seller is selling as "For Sale By Owner", they are not wanting to pay a Realtor, or they probably would have listed with one. If you want to use a Realtor, ask the seller if they are willing to pay the Realtor to oversee the sale. Because all the Agent is doing, is to take the transaction thru escrow, he/she may be willing to do so for a discount. Many sellers are afraid to tackle the process without professional help, so they are willing to pay for the service.

Al

Do I need an attorney to assign a contract,I'm in Maryland and my realtor said we have to use the Maryland contract?So do I need an attorney to assign the contract or not?

Alchristmann, awesome stuff!! You, too KimmyJ! So, quick question. If assigning a contract, does the realtor receive their compensation based on the originlly negotiated price with the seller, or the new price with the end buyer? Thanks.
-Tom

What the Agent's commission is based on depends on the agreement with the Agent. If the seller is paying the commission, they would probably not pay more then a percentage of the amount that they receive.

Al

Good point, thanks. I'm curious, though. Because we are entering into relationships with our realtors, do you, or anyone, make a practice of paying the realtor a small commission on your profit, say 1% or 2% or perhaps something negotiated between you and the realtor beforehand? I believe I've read this as good practice. Keeping everyone happy, especially the people who are working hard for you is a good thing!

I had been wondering about how the agent was paid on an asignment too and you guys have cleared it up for me. I have to say that out of all the Real Estate materials I've read and courses I've had, this is by far the most informative.
This site is the best!!

Good luck to all,

Rick888

Hi Donny. I first called dept of RE CA. they said Assingment w/0 license not legal in CA.
Then I talked to a RE lawyer. I specificall asked him: Is it possible in CAlifornia for a middle man(me) without a real estate license to find someone who wants to sell their house, and both sign a legal contract and then the middle man assigns the contract to a third party buyer for profit?
My question is: Does a person have to have a Real Estate License to legally be the middle man?
Is it possible to do this Legally?

He said No, or he did't think so to all 3 questions.

Donny have you looked into this? Have you gotten around this somehow? Do you have different info?
Please write if you have the answer. I'm stagnating in Bakersfield, Thanks, Randy

I first called the Dept of RE CA. They said Assignment w/o RE license is illegal.
Then I talked to a RE lawyer. I specifically asked him:
Is it possible in California for a middle man without a real estate license to find someone who wants to sell their house, and both sign a legal contract and then the middle man assigns the contract to a third party buyer for profit?
My question is: Does a person have to have a Real Estate License to legally be the middle man?
Is it possible to do this legally?

He said "No, or I don't think so" to all 3 questions.
So, I'm sure there are a lot of you DG people out there with different info. Please, write me and give me good news, so I can get revved up again. Thanks, Randy- stagnating in Bakersfield CA.

I live in CA. It is not illegal to assign your contract to purchase a home to another person. If you ask a realtor, they're not going to understand and tell you that it is illegal. Technically, yes you are the middle man. However, you are not receiving a finder's fee or fee of any kind when you wholesale. You are "selling" your rights to a purchase contract. Hope this clarifies things for you. Good luck...

KimmyJ
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I had the same concerns. Thank you a million for the clarification.

Petra

there's an abandoned home in my old neighborhood ... it's a really nice house ... i knew the owner for years.. don't know why he left it .. but my question is ... since he no longer wants the house, abandoned his mortgage ... would it be safe to say i should try to get a "quit claim deed" on the prop???...then after doing so ... would i be able to assign it??? and/or is it possible to just assign it in it's current state ... the owner hasn't been in the home for 8 months now and the property still hasn't went into foreclosure or pre-foreclosure for that matter... can anyone help??

thank in advance,
Dtdennis

I hope to make my first deal here soon in Gordon Ga. I am reading Dean's books and my son the YungGun is helping me. As I am helping him. This is going to give both of the boost we needed to reach our goals of being able to keep up with the Jones'.

DtDennis, there are a lot of abandoned homes in my area too. I was hopeing to get some info here as to how to do the assignment deals. If I find any info that helps the both of us, I will certainly post it. good luck.

I think it is possible that some of the confusion over legality on assignment may be due to the issue of bird dog finders fees.

I know in my state of Washington it is perfectly legal to assign contracts. There is however a bit of debate here on the subject of accepting a fee from a buyer for finding the deal (without a license "bird dogging"). I was told just recently it's illegal but yet is a common practice. Some advise "Just call yourself something like a property annalist and you'll be fine. I am going to ask an attorney for a more in-depth explanation on this.

Perhaps you have a similar situation in Ca.

Thanks alchristmann, great explanation.

Steve