Hi to all the pros,
let know please
-is it ok to ask the buyer 2*1% of the transaction, if you cannot negotiate(price not increased to 101%) or don’t want to collect 1% fee from seller(seller keeps 100%)?
-do you introduce 1 buyer only to seller,and if not can you ask that 1 buyer 2% for exclusivity?
-any difference in fee for non/ licensed person & is 2% (possibly minus tax),from only one of the sides ok?
I read this when I first awoke and I was confused as all get out.
Then later after getting back from Walmart and having a good lunch I read it again and am still trying to figure it out.
I got this crazy idea, it’s called the “Keep it simple Stupid” method. (KISS)
Get a fixer with a distressed sellers house on contract for lowest price, add your fee, then market it.
Your fee has to be over 2 Grand cuz that’s just grocery and gas money.
Never introduce your buyer to your seller, I’ve done that a few times and had my ass handed to me.
Good luck pilgrim.
thanks for input sorry for confusion(there is also motto -why do it simple when you can complicate it kind of helps in beginning:))
to clarify
the idea might be to find property the buyer wants and instead demanding 1% from buyer and 1% from seller to connect them you ask only the buyer for 2%
Prior to giving details about the property/seller or connecting the parties you sign Finders agreement with the buyer for 2% if you do not want to take 1% from seller side as well(you agree/sign with seller in advance: -to deduct 1% from the amount the seller receives, or
-seller calculate in your 1% when presenting the price to the buyer-pass on your 1% to buyer)?
Also how does compensation form parties/buyer to the finder actually happen, suppose cash is not possible, is check OK or finder needs to perhaps present the buyer with pro forma invoice ?
OK, I’m still trying to figure out wat is going on in ur cranial mass, Forget 1% and 2% from seller and buyer.
Never ask seller for money to sell their house, unless your a licensed blood sucking realtor.
Your fee is paid by the buyer and if you only ask for 2% I’m gona have to go to ur house and use my stun gun on ur testies.
Add between 5 to 25 grand to the price before you present the deal to the buyer. That amount depends on how good of a deal you found.
If buyer likes the deal, have him or her sign your Assignment of contract for the fee your asking. That will be turned into escrow with the purchase contract you had your seller sign.
It appears your starting from ground zero, get an education on wholesaling real estate, read a few books, contact other wholesalers in ur city, they will have you bird dog for them until you learn the ropes.
Get some business cards, stay out of the sun, use a flotation device and eat your veggies and wear protection.
When you are flipping sfh, there is only so much margin. You cannot get %. You have to make a fee. Between 1-5K.
I get the seller to pay me sometimes. But both the seller and buyer are aware of this fact. If over 5K, you run the risk of the parties walking away. Get the property under contract and control the deal.
I’m looking to get educated in this type of money earning in real estate. I think I could do really well.
That’s a lot of unnecessary work. Contract to Buy Low with a seller, add your assignment fee, and sell a little higher to an end buyer. The buy formula is this: ARV x .70% - repairs = MOA (max offer amount). There are good deals out there…are are averaging $12k per wholesale deal.