Good grief John, you are one of the last people I would expect a brain shutdown on just using an analogy to show a concept, sounds like a defense lawyer in court.
So for those of you out there that want a legal and technical answer, and just can’t get the general picture, here is a restatement of my post.
An agent takes a listing, and a duty of agency from a seller. He takes said listing to have an enforceable contract in order to collect the agreed fee for finding a buyer for the sellers property. Because it is often called a commission. these fees are considered the result of an agency agreement. The agent thus controls a property through a listing but does not control the sales price the property can be sold at, that is up to the seller.
Now a investor takes a listing but it is not a listing it is an option and unlike the agents listing the final sales price the seller is to recieve is already set with the investors listing or legally stated the investors option. But unlike the agent, the investor can charge as large as a commission as he wants but he calls it profit in order that some sematics expert will not try to make it something it isn’t.
But in both cases an individual controls a property and earns money for finding a buyer. Now isn’t that basically the same concept, sans the nitpicking. As a matter of fact this is so much like a net listing the legal gap is only the fact of agency.
Acutally sounds you have a lot of excuses that you heard from other people. Only reason I am saying that is because I have students right making money using all the strategies you named in the the same type of markets worldwide. So if I were you to get capital I would do wholesaling because it has the least risk and fasted to cash. Remember find the most important things to do in the rei biz and do them in unlimited volumes, don’t set goals for like 1 deal a day or 5 in a month because you usually set yourself for failure or limit yourself. PM if you have any questions
thanks for your input acoleman, i will assume that was directed at me. this post was getting hijacked…
I don’t believe wholesale can be done in my local market. Before you shake your head and blast me, take into consideration that Canada is a bit different. Here information are censored, foreclosures are controlled directly by government agency (can you believe that?) and banks here are heavily regulated. That’s why we were not so hard hit during 2008 downturn. Also 99% houses are listed and sold averaging less than 28 days. Looking for a 70% FMV house to wholesale? i would say very difficult …
at least, I haven’t found a single wholesale investor locally.
But it goes without saying that nothing is impossible, perhaps one day it will come to light that i was just been ignorant. i sure do hope one day i learn the trick of doing other strategies locally.