Hey Everyone,
I have a question. What approach would be the best when dealing with a large land deal. I know there are serious buyers out there, but what approach should I take since I will not actually be a purchaser?
Any thoughts are appreciated
You can do it in several ways:
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You can have the seller pay you a fee for bringing him a buyer.
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You can have the buyer pay you a fee for bringing him the land. However, most buyers don’t want to pay.
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You can do a double close but this is tricky to manage because of the due diligence and other factors.
Probably the best option is #1.
Patti Porter
Transaction Enginner??
I guess it’s like Steve McQueen in the stock auction in the movie “Tom Horn”…the cattle rustlers are selling the stolen cattle at an auction, run by the crooked marshall…
Marshall: “…and who are you?”
Tom Horn: "I’m a ‘stock detective’ "
Group assembled laughs, snickers, and gaffaws…
Marshall: “What’s a ‘stock detective’?”
Tom Horn: “Me”
Keith
Exactly. I don’t quite have the funding to wrap around this deal, and I sure don’t want to pass up the opportunity to make a nice profit.
Someone told me I was a “Transaction Engineer” ;D
Well, if you’re not RE licensed and want to be paid compensation, presumably you would be one of the principals in the deal. Otherwise, you might be running afoul of a state law that prohibits people from collecting compensation for brokering without a RElicense. In PA, land buyers (developers, builders) usually have no objection to paying the RE broker who brings them the property.
Nancy
Today I got the full education on setting up the transaction. Setting myself up as a partner that will be bought out for each deal is typically the best way to be compensated without legal issues. 2% ownership is not a bad days work on a $7m deal… ;D