Offlinehey DG family im a brand new investor in western,mass im currently working on a deal that i put together i found some rei's who has a couple of properties thier trying to unload i spoke to them and it seem that they were very motivated so i went out and found a buyer who wants to lease option the property he has a large down payment ready to go my question is should i lock up the property and then sublease or should i just put my buyer in contact with the seller and collect a buyers finder fee from the seller since i went out and got his property sold how would i collect my fee with out getting cut out of the deal
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You should definitely get the property under contract first. You can make a lease with option deal with seller and assign your rights to the deal to the buyer, for a fee. But definitely get the place under contract, if you don't you don't have a deal.
Cathy B
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You don't have a deal until you have it locked up on contract, and they sign a non-disclosure non-circumvent agreement. Ask yourself: 1) Do I have a cash buyer lined up who can close fast? 2) Did I qualify my tenant buyer as a good rental candidate for this property? 3) Will they qualify for a mortgage in the near future? Then, 4) Do I want a few hundred (birddog) or a few thousand (assignment) soon, and wash my hands of this deal, or a few thousand now (lease option DP), a couple hundred profit each month, and alot more later? Once you know your needs, goals, and profit margin on this house, it should be easy to decide. Best of luck to you...
Paul: "I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when my fear is gone I will turn and face fear's path, and only I will remain."
Duke Leto: "I'll miss the sea, but a person needs new experiences. They jar something deep inside, allowing him to grow. Without change something sleeps inside us, and seldom awakens. The sleeper must awaken." - "Dune."
As long as you have it "locked up," there's no point in introducing both sides to each other. If you do, you're just begging to be "cut out" of the deal. They could simply wait for your contracts to expire, or do something shady before then, to get around you.
Paul: "I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when my fear is gone I will turn and face fear's path, and only I will remain."
Duke Leto: "I'll miss the sea, but a person needs new experiences. They jar something deep inside, allowing him to grow. Without change something sleeps inside us, and seldom awakens. The sleeper must awaken." - "Dune."
A couple things to keep in mind when looking to make money with lease option. It is called a sandwich lease option, and you can make money on all levels, up front, every month, and at the end when it is sold. Make sure in the first lease option you have the option to sub lease the property out. You will also want to get the end buyer to talk to a mortgage broker to make sure they are preparing themselves to be able to qualify for a mortgage when they need to buy the property.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125