Questions about Working with realtors on subject to

:help Hello everyone, I was interested to know how to work with realtors on a subject 2 deal and how to pay them. I recently found a buyer with 30,000 grand that they can put down. So I am very interested in finding them a house. However, the are that they want to live in is pretty small so that makes the possible sellers that would allow me to buy their houses sub2 even smaller. I want to get this guy in a house quick and figured working with a realtor would help expedite that process. Though I don’t know how to approach the realtor, what to ask for, and how to pay them since closing on the house wont happen until much further down the road.
Also, I’ve been looking for more creative example on how to structure different types of sub2’s so that when I find a seller I can have multiple offers to give them instead of one.

Thanks

sizzle,

Buyers are a dime-a-dozen. Sellers are not.

It takes me “exactly” two minutes to find a buyer with $30,000 to buy a house from me.

You don’t have the ‘buyer’ of a lifetime here. Also, the prospect of going through an agent to close on a sub2 deal will happen just as soon has they find a cure for the common cold.

AITD’s are the closest thing to what you’re attempting to mediate, and many real estate companies won’t do them. If they do, they’re gonna be checking the credit, background, financials, and what not, if not asking all sorts of employment questions of the buyer, that he might as well get conventional financing. Forget that.

Rather, start your prospecting machine and scare up sellers that can’t sell, but aren’t behind in payments, and pitch them your idea of saving their credit, and giving them a little bit of cash for their equity, and their deed.

Of course, it’s a little more complicated than that, but the concept is simple.

After you’ve got a seller, then go find a buyer with the $30,000 down payment you want/need, and close on them.

You could do like one of my subscribers is doing as I write this.

He found a seller three weeks ago whom was living in a defaulted, half-million dollar house with his roommates.

The seller bought the house at 20% below market, but couldn’t make the payments. Meantime, he hired an agent to sell the house, but she didn’t do much more than pound a sign in the yard and post it on the MLS.

My subscriber offered to bring the seller’s payments current, and give him a note for part of his remaining equity in return for the deed. The seller said, “yes.”

So, my subscriber bought the house for the back payments, and is in the process of marketing it at retail with 10% down ($50,000) with easy-qualifying financing.

When he’s done with this deal, he’ll put a least $20,000 in his pocket after bringing the loan current. In several months he’ll get the rest of his profits.

You could do it the easy way, or the way you’re describing.

There’s several Sub2 training courses out there sale, and I would suggest you find one that shows you how to find, negotiate, and close on deals like the one I just described.

Meantime, find the sellers first, then worry about buyers.

Hope that helps. :beer

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To answer your question more specifically; the agent gets paid out of the seller’s proceeds from the sale at closing.

If you want to get paid commissions from sales, you might as well become an agent. There’s no point in attempting to do Sub2 deals through agents. It’s like trying to cut your fingernails with a chainsaw.

Meanwhile, the sellers that are the most likely to do sub2 deals, usually don’t have enough equity to pay agents, much less pay both an agent, and an independent merchandiser. FWIW

Yes it helped a lot. Thank you