OfflineI ran across an opportunity and found a RE agent who also works as a wholesaler. I called him as I am building my buyers list. He is offering to help me work on a deal.. He would be the buyer/or other wholesaler.. He said in these type of situations, they normally pay a finders fee to any wholesaler that brings them a deal that closes... but what do I need to do in order to protect my interest in the deal? On this deal, I would not be putting it under contract, but referring it to someone with an extensive buyers list in that area. I am still building my list.
When you network with other wholesalers.. Do you have
them sign a non-circumvent..OR, is there a finders fee bird-dog type of an agreement??
Thanks!!
Holly
__________________
Holly
Well holly from what i know the cash investor should set a fee like 1000 per lead or something and yes i think it would make sense u sign something that says u get paid cuzz obviously u are saving them alot of time by finding a profitable deal. Ask him to sign a contract stipulating u should get paid. Ifs it in writing they normally have to comply.
You may want to check your Real Estate Laws. There are Investors out there that do pay the Referral Fee, but if relations get tense for ANY REASON at all they could turn you in and you could get you in trouble, because you did not or do not have an "Equitable Interest" in the property. Therefore, if it were to go to court, you are in fact, acting as an Agent when accepting a referral fee.
I am not by any means trying to discourage you. I am going through this right now. I live in Mass and my law is clear. You just have to trust the investor to keep his word that he will pay you. If you insist that there is a contract, then he will have the paper document to prove that you did not have Equitable Interest in the property in question.
Better way, is to deal with FSBO's and get them to accept the deferred earnest money deposit. Tell the owner that you make so many offers that you simply cannot tie all your money up in hefty EMD's. Carry a blank check with your company name. If the owner does not like your offer, then you will have to increase your EMD. In my area, right now, there are not many of these deals being done. The homes are selling at or above listing price. I was surprised to see this, but it is what my research is showing me. If the owner of the FSBO accepts your deferred Earnest Money Deposit, approach your cash buyers and show them comparables. Try to use mainly low comparables such as Foreclosures and Short Sales where the house was sold at a discount. Don't tell the owner that you used these types of comparables, unless he specifically asks you if they are foreclosures.
I don't want to use a Realtor because they seem to cloud the water. Why get them involved so you have to pay them? Get the property tied up and assign it to the Realtors buyer then you involve them you have to inflate the price to cover their commission paid by the seller. Is it possible to do this and still allow the seller to get what he needs out of the sale?
Agents are not allowed to pay you. Get the contract locked up and get paid by the buyer.
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
I never expected the Realtor to pay me. If I assign the contract to a buyer that uses a Realtor the seller of the property usually is expected to pay the Realtor commission on the buyers side unless they have a buyer broker agreement. The origional net to seller would change to seller unless the sale price is increased to cover the commission.
I never expected the Realtor to pay me. If I assign the contract to a buyer that uses a Realtor the seller of the property usually is expected to pay the Realtor commission on the buyers side unless they have a buyer broker agreement. The original net to seller would change to seller unless the sale price is increased to cover the commission. Thus involving a Realtor changes all the #'s.
Lock it up and put it under contract to be on the safe side for yourself so you don't get bitten in the long run.