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Don’t Bypass Real Estate Agents
| | Monday, April 28, 2003 @ 09:11 AM EDT
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Contributed by: Derrick Ali
Derrick Ali Properties
Read more archived articles about Buying
Don’t Bypass Real Estate Agents – Use them to Locate More Profitable Deals!
Why not try an approach whereby the RE Agent presents the with your Lease Option deal. The Owner agrees to de-list their property and 'Lease-it' to both you and your partner. This would not be a violation of the Listing agreement. You agree to pay FULL-PRICE for their property without the immediate costs of an RE commission.
Also, you can even agree to do an Equity-Share (split) arrangement with the Realtor that will offer the seller an even HIGHER PRICE for their property based on future appreciation.
Tell them that by selling it to you through your 'SPECIALIZED METHOD' of leasing the Seller could DELAY Capital Gains Taxes and Transfer Taxes and the Realtor could possibly earn some monthly income.
The Specialized Method I use
to get seller's to finance for me is called the Equity Holding Land Trust™ . SIMPLY ASK the seller if they can leave their name on the mortgage for 2 years or so...And also if they can afford to keep some or all of their Equity in the property for that same time period...
If they say Yes/Maybe...EXPLAIN that you will GUARANTEE 100% payment on their current obligations on this home (Principle, Interest, Taxes, & Insurance)
IF THEY ASK 'Who' will be in the home during this time?
Tell 'em that your 'PARTNER' will live in the home, keep up all the maintenance and/or repairs (if any) so at the end of 2 Years they will refinance to pay you off.
If they say OK - then have them give you a 45 Day non-exclusive Option to Purchase...Once you have this you can confidently Mkt. for a new ‘lessee-buyer’ for the home without violating the listing agreement...
BENEFITS TO THE REALTOR: Tell the REA what you plan to do and then offer them either:
• A 'FINDER'S FEE' (I normally pay $500 to locate a ‘Lessee-Buyer’) and/or
• A 'SPLIT' (%) in the FUTURE transaction because it's not really a True SALE until 2 Years down the road.
I find that if the REA is ‘Sharp’ and knows what's up your sleeve...they can become a great A$$et in terms of finding 'Don't-Wanter' properties with Sellers motivated to get out from under a 2nd mortgage payment, foreclosure, divorce, etc.
And I kind of like having the odds in my favor...all the REA can do is say NO but then again you’ve already told them you next move!
Best of the Best to you and I hope this Helps!
Derrick Ali
Note: Derrick Ali is Director and Chairman of Consumer Mortgage Loan Advocates. He is the author of The Quick Start Real Estate Investing Guide. Derrick specializes in Land Trust Transaction Engineering for Equity Holding Trusts(tm) and/or PACTrusts (tm)
methods. You can also hire him to consult you on the set up of these Land Trusts for you.
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