How do i go about a contract assignment if the home seller has a realtor?

[PradaP]

thank you very much, i am trying to figure out when to do the comps b4 or after the contract sign because i was thinking b4 so i can negotiate from that ARV. and what is the best way to get a realtor to do comps for cheap or free?

[PradaP]

NM I found a couple new sites where i can get free comps from this fourm, my question is what are the correct steps from begging to end on how to do a assignment deal?

Thank you.

[scostell]

The best advice anyone can give you is to search this forum for "Assignment".  You will learn everything you need to know about assignments as well as a bunch of other things as you read through posts.  This takes a lot of effort but you will learn it, retain it and understand it. 

Hope that helps

-Scott

[Lamar]

Prada,

      Don't second guess yourself or over analyze. Get the deal under contract, set your assignment fee, market it to an investor and just assign the deal. You can get paid upfront or at closing. Just make it happen. No Excuses!

Oh and the way to get comps from Realtors is by building a relationship and asking them. They'll usually do it for free. Give Value and you shall recieve Value!

[PradaP]

i see and understand what you are saying lamar but i just wanted to be sure on what was the comps and ARV when i was trying to negociate a lower price. ill just find a property put in under contract and just market it but my thing is this do i do the title work or let the investor so his Due dillingence on the propety?

Thanks a lot 

[amesda]

I guess what I hear you saying in this matter is that the process of wholesaling is the same whether the property is listed with a realtor or not. Correct?

I say many properties here that are listed with realtors that may be a wholesale deal; however, what to do if the realtor and/or real estate company requires pre-qualification? This is where we run into a snag. We find great deals, however the agent always seems to say that we need pre-qualification before ending the phone call. What do we use for pre-qualification? Our credit is shot, 2 bankruptcies, yadayada,ect...We are on the up swing taking care of some things. Wanted to do wholesaling to pay off debt so that we could increase our credit lines and be approved for things.

Dan

[amesda]

Also, to my previous post, I might add, how do you assign bank owned properties? I didn't think that was possible. However, according to TampaSteph, that is possible. We just have to do a double close. I am familiar with them only because I have been studying them.

[PradaP]

Thank you very much Dan for your timely and effective info. Yea i found out a couple weeks ago you would need to double close a bank owned property. For realtors i wont have to deal with them because im just doing FSBO'S its less of a headache for me. for assignments i thought i would have to do a title search but someone told me a real investor will do his own homework on the property.

so what im going to go find the homes, run comps find arv then get the lowest possible price put it under contract, and market it to my buyers list of only nine buyers lol. but i know what they want and where they want it so someone will buy it.

Thank you

[PradaP]

thank you everyone who read and replied to my post im am more educated now in wholesaling than i ever was.

Thank you you all 

[TheDealMaker]

PradaP,

I'm with you on the FSBO's (don't know what part of the country you're located in) however, in my correspondence with FSBO's they're very "tight" with the money....even though their ad for their house may say "negotiable" my experience has been that they pretty much want full Retail and they don't want to budge much (guess they aren't MOTIVATED enough at this point). Going in, we already know they don't want to pay the 6% realtor fee, or any split  on it, much less any concessions....any suggestions on this? OR, do I wait a little longer till they become More MOTIVATED? Thanx ~ John   

[frankfromjoisey]

Also I get good info from my local newspaper website. There I can find recent sales, tax records showing what the house is worth and a nice foreclosure list etc...

[PradaP]

i 100% agree with frank i always do that and waiting on someoe is somewhat good but letting them think on your offer as you do others well make the wait seem shorter. depending on the how long the house sits on the market will determine how long you will wait on the offer being accepted.

Prada P 

[PradaP]

wholesaling is the best way to get started in real estate with less risk.  like i tell myself NOMORE excuses   get the money and get to the next deal ASAP.

Prada P 

[Experienced Wholesaler]

do i go therw the owner of the property or the realtor? i have my own real estate conract will the realtor use  mines or his but i have a clause in mine saying what would be his percentage at closing?

If it is listed by a Realtor, you could very well have a pain in the ass if you deal directly with the Seller. If you have a legit buyer, then just tell the Realtor and you might be able to get them to split a % of the commission with you (It is their legal right to collect the commission then pay you. They will just 1099 you for that amount so they are not taxed on what they pay you and you can invoice them).

Might make the structure a little easier to achieve.

In my experience, at some point you are going to have to deal with the listing agent, who legally is the gateway to the Seller, so better to get it out of the way.

YES they do have the power to do 2 things:
1) Interfere with the closing if they are not paid, and
2) Sue the Seller later if they are not paid based on the contract terms that they have with the Seller.

One thing you might do is discuss (carefully) the Seller exempting himself from the Exclusive Marketing Agreement by writing it in the special conditions section of the Agreement with the Realtor. The logic to the Seller being, the Realtor didn't procure you as the buyer.

I do not advise cutting out agents though (ask me how I know this  been there, done that)

Why not go after recently expired listings? 

Great job, keep it up!

[j1dias]

If it is listed by a Realtor, you could very well have a pain in the ass if you deal directly with the Seller.[/b] If you have a legit buyer, then just tell the Realtor and you might be able to get them to split a % of the commission with you (It is their legal right to collect the commission then pay you. They will just 1099 you for that amount so they are not taxed on what they pay you and you can invoice them).

Experienced Wholesaler - I am sorry to say that, but you are way, way off... :O) A Realtor cannot split commission with an unlicensed person. Any Realtor knows about this and actually this is probably one of the negatives about being a realtor - you can't offer a commission or a bonus to anyone that brings you a deal... :O(

A regular investor can put out fliers stating that he will give $500 or $1,000 to anyone that brings him a deal. If that investor was a Realtor, he would not be allowed to do that... :O(

And even if you could find one that would take the risk and split the commission with you, he would need to do that under the table - he would never be able to give you a 1099...

Have a good Sunday!