OfflineI'd like to do a no money down offer on a house. The owner currently pays $1,200 for the mortgage. I'm going to offer no down payment, $2,000 (interest only payments) with a balloon payment in 12 months.
Question: How do I take care of the Realtors commission on a deal like this. Will they wait for 12 months for the balloon payment. I'm sure they won't be too thrilled about this.
Thanks for any advice.
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So I take it this is an off market property? There should be no agents involved for that, especially when it is an owner financed deal. Did they prepare the offer? run comps? If they did then $300-$400 is appropiate, that's what I promise my agents when they do that for me for off market props.
They wouldn't have owner financed deals on the MLS so I think this is off market. You don't pay realtor commissions when they are off market only on the MLS unless your agent is really helping you also with taking pic's for you & delivering the offer to the seller because you are out of town etc, if so then I tell my agents I will give them $2k or 3% of the purch price whatever is greater & I pay out of my wholesale fee or at least I will when I do one of those deals
Tony
Go faster do more! GFDM!
Is your realtor involved and what is your working arrangement.
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It is the responsibility of the seller to pay both the sellers and the buyer's agent. They may have to take their payment in monthly installments. Betcha they won't like that. If you have any money to put down, that could be used as payment and then offer less of a monthly payment to make up the difference.
They make want half now and half in 12 months. I did one recently like that also if the realtor still has a contract with the seller that has not expired that may make things a little trickier. But it is doable
"Don't tell me I can't, Tell me how I can."
Thanks everyone for the feedback. The property is a listed property, but I wanted to offer an "owner finance." Paying 50% commission up front and the other 50% when the balloon payment is due, sounds achievable.