Does this sound right to you?

I had an investor contact me about a great, and cost effective solution called the Buyer Connect Program. This program allows you to pick from any property on the open Real Estate Market, and set your own Financing Terms, including the Interest Rate, Down Payment, and Monthly Payment.

He said if I have any less than perfect buyers that could benefit from this program, please let him know. He told me they do pay Finders Fees.

I asked him how much finders is he offering? Instead of him answering my questions as just tell me how much is offering, he then asks me how much I think is fair. This was not expected because I don’t have time to play pick a number. A simple answer would have done just fine. I gave him a number he didn’t like. So he suggested he would pay me 25% finders fee just to bring people to his website to sign up for his program. I was able to find leads to sign up for his program. I asked h him how I was going to get paid from bringing him people to sign up for his program. He tells me is not going to pay me finders fee for bringing him the leads I found. He tells me he thought I was going to actually close on the deals. Tell me this. When have you ever known someone to offer you finders fee on a deal you got closed? I never said anything about closing any deals. It was his idea to offer me a finders fee for bringing in buyers to apply to his program. If I am suppose to close on a deal myself, why would he offer me a finders fee? That’s the same as me bird dogging for deals and I get paid a fee if someone else close on those deals I brought to them not the other way around.

“This program allows you to pick from any property on the open Real Estate Market, and set your own Financing Terms, including the Interest Rate, Down Payment, and Monthly Payment”

That sounds fishy to me.

No one is going to let me go pick a $200k house on the MLS, use someone else’s money and pay .025% down, 1% interest and pick a payment that’s $200 a month on a standard 15 or 30-year fixed note. The math just doesn’t add up right.

There are probably certain minimum standards one must have, or there must be some sort of silly trick / scam attached to it. E.G. the note holder might buy the property at it’s MLS listed price, and increase the price to you by 50% and put it in a note…OR make it a 3 to 5-year balloon note…or something like that which is not suitable for most buyers.

Used mobile home notes AND used car notes are frequently done like that, as marketing gimmicks, but they have huge markups so that is an option for the seller. If you buy a used car for $2000, sell it for $4000 at 5% interest over 36 months, you are technically charging the buyer a lot more than 5%…but he doesn’t know that. Or if you buy a used mobile home for $3000, and sell it for $9000 at 3% interest over 48 months, again you are still charging a lot more than 3% interest…but the guy signing the note has no idea what your basis is in the investment. Your APY is off the charts, the buyer is happy because he thinks he’s paying 3% interest, and everyone wins. That also gives the noteholder the flexibility to offer the guy his own payment amount, interest rate and payment schedule - say 36 or 48 months - and still make a killer profit. In reality it all comes down to what % of a return the seller is getting…and the math adds up right.

But, based on what you described, it sounds like that could be a scam or something at least “questionable”.

It’s like buying a $600 to $800 “get rich quick” real estate book. It’s not worth it, and the only one who wins is the seller. You can get the same material from for $20-50, and save yourself a ton of money.

Just remember that if it sounds too good to be true, then it probably is.

This whole program smells like fish. The guy sounded shady the minute I was given the opportunity to pick my own finders fee. I mean seriously. Who does that?

Sounds like you learned a valuable lesson today–Contract writing 101. If it’s not in writing, it doesn’t mean sh-t. ALWAYS get an agreement in writing and explain exactly what the terms and liabilities are for each party.

I’m over that. Besides we are both upset with each other and are no longer going to contact each other ever again. The people did not sign up for this shady program and the ones that contacted me wanting to know more about signing up to this thing went to the trash where I sent them.