We apologize, but the forums are closed for new posts. Click Here To Join The Unemployables Facebook Group

Welcome, Guest. Please login or register.
October 20, 2021, 06:55:40 pm
Home Help Search Calendar Login Register

Welcome, Guest. Please login or register.
October 20, 2021, 06:55:40 pm
Home Help Search Calendar Login Register

Author Topic: How do i go about a contract assignment if the home seller has a realtor?  (Read 18033 times)

Offline Experienced Wholesaler

  • Member
  • *
  • Posts: 19
I appreciate the correction on that topic.

I may be wrong about that, and I will double check my sources.

I agree, the straightforward way you explained it would not be the way to do it. I am not advocating doing anything that is prohibited, and there is often a legal way to do things but that always depends on your advisers.

Quote
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(

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...
However, I have a colleague who has had a relationship with an agent such that he has been paid a fee for services that has been structured, with the help of his accountant, so that it is completely legal and deductible as an expense.

I think it comes down to how the agent's business is corporately structured.

Again, this particular point isn't one of my areas of expertise, and I will admit it, but I know that if you have the right structure you have some flexibility.

Thanks for the clarification, again, I will double check into HOW it has been done.

Continued success! :biggrin

Offline PradaP

  • Member
  • *
  • Posts: 31
thanks guys, expericend wholesaler i have one question, is it legal to do the procedure to cut the agent out i mean how do i do that. without a legal mess up tell me more about cutting the agent out?

Thank you  :beer

Offline j1dias

  • Member
  • ****
  • Posts: 672
thanks guys, expericend wholesaler i have one question, is it legal to do the procedure to cut the agent out i mean how do i do that. without a legal mess up tell me more about cutting the agent out?

Thank you  :beer

PradaP - are you sure you want to do this? What about the Golden Rule? How would you feel if you were the realtor and someone was trying to cut you out of the deal? No deal is worth your peace... :O)

Just my 2 cents. Have a nice evening!

Offline htjohnson

  • Member
  • *
  • Posts: 24
whats the deal with reo not excepting assignments. everybody gets what they want don't they? i contacted an agent here and he said the same thing. are there ways around rejection from realtors?

Offline j1dias

  • Member
  • ****
  • Posts: 672
whats the deal with reo not excepting assignments. everybody gets what they want don't they? i contacted an agent here and he said the same thing. are there ways around rejection from realtors?

htjohnson - realtors can't reject an offer. They are agents, not principals. Only the principal can accept or reject an offer. There is one exception to this rule, but it is not relevant for the discussion.

What I believe happens most of the time is that we talk with the realtors on the phone and ask if the bank would accept an assignment, or if the bank would accept a contingency, or if the bank would accept this much... The realtor tells you NO and you feel your offer was rejected...

One thing though you need to realize is that noone rejected your offer, because there was no offer. Until you put it in writing and send it in, there is no offer. My suggestion is to write it down and send it in. The realtor will be required to present the offer to the bank (again - there is one exception) and then it is up to the bank to accept or reject.

My suggestion to you - put your offer in writing and send it in. If the realtor comes back saying that the bank would not accept it, than politely thank him for his insight but insist that your offer be presented anyway. The realtor is required to present the offer.

You will be amazed on how different some people react to offers in writing. Some people will tell you no over the phone, but end up accepting it if you put it in writing... At least this is my experience with negotiations (not real estate related...).

Good luck!

Offline Experienced Wholesaler

  • Member
  • *
  • Posts: 19
thanks guys, expericend wholesaler i have one question, is it legal to do the procedure to cut the agent out i mean how do i do that. without a legal mess up tell me more about cutting the agent out?

Prada P, I must agree with J1dias, I do not agree with going around an agent on a deal.

Honestly, just pay the people in the deal.
However, be a smart negotiator.


After several years filled with experiences of deals that have gone haywire because someone was cut out of a deal, I have come to the point where I see how the business works better when people are making money. Getting cut out of a deal has caused angry, even violent reactions from other parties who feel entitled.

Do I know how to legally cut out Realtors, other investors, and anyone else in my way??

YES!!

Would I??

NO!!

It's bad business, bad for the industry.

When it happens to you (like it happened to me) you see that that kind of unethical behavior makes it hard for EVERYONE to make money.

Here's an idea:
Learn how to negotiate with the Realtor for a flat fee, or something in your favor.
If you are bringing the buyer, you can have a reasonable cause to help the Realtor see the advantage of working with you in a way that makes you feel satisfied.

Also, why not wait till it's expired...
« Last Edit: July 11, 2008, 08:04:46 pm by Experienced Wholesaler »

Offline PradaP

  • Member
  • *
  • Posts: 31
i want to thank both of you for your response i would like to know how to cutt a realtor out of the deal? just incase i need to because i want to know how to be the middle man or cutt out the middle man.

Thank you  :beer

Offline PHXrealtor

  • Member
  • *
  • Posts: 1
I am a Realtor in AZ, and I've submitted numerous REO offers on behalf of a wholesaler client of mine.  Of the 20-30 offers we've made, only 1 bank has come back and said they would not allow the contract to be assigned.  So, I would definitely make offers on REO's with an assignment clause.  The worst that can happen is they reject your offer. 
« Last Edit: August 03, 2008, 12:08:50 am by PHXrealtor »

Offline PradaP

  • Member
  • *
  • Posts: 31
Re: How do i go about a contract assignment if the home seller has a realtor?
« Reply #38 on: September 24, 2008, 10:51:26 pm »
 :coolthe best way is to pay everyone invovled because i do believe in Karma but i just wanted to how becaus i didnt know thta you actually could.

 




SMF 2.0.15 | SMF © 2017, Simple Machines