Yo. I stumbled accross this site a few weeks ago, and all the information is awesome. I hope to eventually get into real estate, but as right now I’m a student, I’m trying to start off as a bird dog.
I’ve found a few interesting properties around a decent neighborhood. For Sale by owner. And they’ve been there for a long time. The houses look well kept but old. I’ve also found some investors. I haven’t spoken with them yet, but if I can get a contract on these houses I think we can get a deal.
Is there any information or examples about contracts around here? What I’m going to try to do is get a contract with the Owner on a price for his house, after inspecting the property. This would be my first deal, and as I don’t even have my own home, I’m unfamiliar with the forms I would have to fill out to own it, much less flip it. Can anyone tell me some basics about what I would need to do to get a contract with the Homeowner that an investor would buy? An example contract would be awesome.
You may want to strike a deal with the seller first. Get an agreement in place where he/she will agree to pay you for brokering the sale. You can either ask for a fixed amount or a percentage of the sale price. (a typical example may be 2-3% of the sale price). As well, you want to ensure the money is deposited into your account 24 hours prior to the sale closing.
Once you have the written agreement in place with the seller, you can then disclose the property to your investors and walk them through.
Here is a link to a website providing free R.E. forms. Please note the disclosures for intended purposes. You may want to customize these forms to suite your own needs.
(Link removed by moderator as site mentioned does not have permission to have those forms on their site from publisher. The original forms can be found at http://www.TotalRealEstateSolutions.com. Thanks.)
Get an agreement in place where he/she will agree to pay you for brokering the sale. You can either ask for a fixed amount or a percentage of the sale price. (a typical example may be 2-3% of the sale price).
This to me (I am a noob so correct me if I am wrong) is what you have to be licensed in Texas as a Realtor to do. It is illegal to receive money for selling or ‘promoting’ the sale of real property that you do not own.
The correct REI way to do it would be to get a signed sales contract where the name of the purchaser is or assigns…
Then you would go to the investors and sell/assign them the sales contract for a fee. By doing this you are not receiving money for the sale of real property not are you receiving money from the seller as a commission for the brokering of a sale.