NAR (National Association of Realtors) just released this today and it only took the NAR years and years to figure it out. There was a time when real estates agents thought I was the anit-Christ for using the following method.
“Learn the In’s and Out’s of “Subject To Mortgages
The TurnKey Investor’s “Subject To” Mortgage Handbook’ is a real estate finance book like no other. Learn how to acquire investment property using an uncommonly used seller-financing technique known as the “subject to” mortgage. Instead of qualifying for new mortgages, you will learn how to buy investment property by safely and legally taking over existing mortgages. This one-of-a-kind handbook will teach you the art and science of buying investment property from qualified sellers using “subject to” mortgage financing.”
I have only been using this method and teaching it for about 12 years and they think they know how it is done, could it be they can’t sell the properties they have so they are finally seeing the light?
Or if we can’t beat them let’s join them attitude.
Along those same lines, I have noticed an upswing in professional RE companies getting into the pre-foreclosure market lately in my area (maybe nationwide?). I went by one of my properties last week adn there was a door hanger from a local RE company about how they can help you avoid foreclosure. They even had a specific web site (different from their own) in which prospective clients could visit for more info. I’m sure this is nothing new at all, but it’s the first I’ve seen of it in my area.
If the current creative investors feel there is too much competition currently from other investors, the way I am looking at it there is a whole new world of people that will starting using our methods about 1.3 million of them as a matter of fact.
Just because they just wrote a book doesn’t mean they’re just seeing the light. There’s more investors and investor agents in the market, so they’re asking for solid materials from an authority in real estate. Decades ago, it was tougher for beginning investors to get started. With interest rates being low and so many books, tv shows, and websites (like REiclub) out there, the gates have opened up.
I don’t see it as a way to “beat” investors. Their goal is to help agents servce sellers who are in trouble.
I see that you are a realtor so I can see where you are coming from. I disagree with your take. Stephen is dead on as there are alot more broker’s and realtors getting into the foreclosure market. Hell I was doing a SS package for a guy 3 weeks ago and there was my competition’s letter sitting on the table. I looked at and realized this guy had 2 different websites…one for his foreclosure activities and one for his mort. biz. Clever.
This market has become so big that if the realtor can’t get the listing then they might as well try and make some money by buying them up before they get listed with a different company. Especially here in NE WI where the market is super slow, appreciation is about 1-3%, and the average DOM is about 3-6 months. Think a realtor wants to wait that long for a commission check? Heck no!
So why not buy them first and make money in a quicker fashion using creative buying techniques? I think that realtors are like anyone else. They want to make money like we do but the difference being is that they are trained to make it in one way and that is by making a commission off a listing sold. I have heard it many times from realtors, insurance companies, and recently some lawyers here in town that sub-2 is illegal. Really?
So this “illegal” info is now available on the NAR site? Also ever take a look at a HUD-1 which is a standard govt. form? Tell me what line 203 says?
BTW the way Dee. A realtors goal is to help sellers AND make money. Many many people say that they are in the biz to help sellers. How many mean it and are in it for the green?
Almost every Realtor I have spoken with through the years has said that Subject To investing is illegal. When I first started doing Subject To the agents would call on my properties looking for a listing and when I explained how it worked, the insults and threats started.
As we are all aware Wal-Mart has taken over just about everything, even have their own bank and do Billions of dollars worth of business every year.
Now that they plan on opening real estate offices in all their Wal-Mart stores to dominate the conventional real estate sales market, do you think the agents who will be employed by them will work for minimum wage or will they still get a commission off every deal?
I guess I’m not sure what the disagreement is. There seems to be two issues, but it seems like they’re being combined to create a scenario where agents want to “beat” investors. I’m saying that:
Agents ARE getting into investing, but many (like me) only got their licenses to invest. We get posts on this board all of the time from investors who ask whether they should get their license for MLS access. I know of 3 people who are getting their licenses within the next 6 months so they can buy below-market properties. Even experienced investors are starting to like getting a piece of the commission as they sell their properties.
Just like a new investor, new agent/investors may not know everything, so may give bad advice. Regardless, it’s a fact that NAR has been providing data for those of us who do want to invest or work with investors because the market has demanded it.
If an agent is saying subject-to is illegal, they probably aren’t the ones investing or they are new at investing. There are over 1 Million members of NAR, so there is a good chance you will come across someone who doesn’t know what they’re talking about.
As for the Walmart issue, I think NAR is fighting banks in real estate because of the unfair advantage of combined services as well as the fact that they won’t be regulated by real estate license law. The banks were planning on using their regular employees to process transactions. These would not be licensed folks because then they’d have to follow licensee law. They’d be your regular “do you want fries with that” bank officers.
As for the Walmart issue, I think NAR is fighting banks in real estate because of the unfair advantage of combined services as well as the fact that they won't be regulated by real estate license law. The banks were planning on using their regular employees to process transactions. These would not be licensed folks because then they'd have to follow licensee law. They'd be your regular "do you want fries with that" bank officers.
Dee, Id love to hear your opinion about why you think the NAR is fighting the discount brokerages then?? They would be following the same license law as the full service guys, just with a capitalist attitude. The NAR comes off looking really bad in this issue as they are basically trying to unfairly freeze commissions at 6-7%. You are a realtor, so whats your take on this??
Remember that I’m not an advocate for NAR. I’m impartial and just like people base their opinions on facts. I have no issue with discount brokers and believe they provide a valuable service as long as they serve their clients.
That said, the first thing to clear up is that NAR is National Association of REALTORS. They aren’t fighting discount agencies. Here are the few issues that were big the past couple years:
I forgot the details, but a few boards up north were being sued because they tried to limit the ability for certain brokerages or agents with “limited service agreements” to put MLS listings on their sites. Again, it’s such old news that I forget the details, but agree that this was wrong. Those boards had to change their rules to be fair to everyone.
The second issue was some small brokers got upset because they didn’t like having to pay for MLS access as part of joining the board. They wanted to get MLS access without paying the full fees. They claimed that you absolutely need MLS access to be a real estate agent and this was an illegal “tying” agreement that limited competition. They lost this suit because they weren’t able to meet their burden of proof. You don’t need MLS access to practice real estate.
Texas and a few other states wanted guidelines around the “limited service” rules. I wrote a few articles on this because people thought Texas was fighting discount brokerages. The rulemakers were just wanting “minimum service” guidelines. Per the law, an agent needs to represent their clients, but some limited brokers would just take a fee, then make the client represent themselves. The clients would then ask questions from the buyer’s agent, putting the buyer agent in a bad situation.
Since 90% of sellers aren’t very savvy, they’d start making the buyer’s agent do work that their agent should do (i.e. explain what the contract means, what their house is worth, etc.). This created liability to the buyer’s agent, so Texas implemented simple guidelines.
The agent can charge what they want, of couse, but they are now required to present offers, answer questions from their clients, and explain the contract. Some brokers thought this was anti-competitive and cried about it, but all they have to do is forward an offer and explain what the terms are to their clients.