How do you overcome the objection from a realtor/seller when discussing the purpose of having the deed signed over to the investor? Is anyone having luck discussing this with realtors? Please help!
It’s simply a condition to the sale, if they want your help in negotiating the short sale with the bank. There is NO equity, and unless they are trying to keep the house, why are they concerned with who owns it?
Sellers HAVE to exhaust ALL possibilities of keeping their home, if that is what they want to do. Your disclosure regarding your services should include a statement that this is the course of last resort and that they have exhausted all other options.
If they’re not there yet, then they are not ready to walk away from their house.
And, perhaps I should have started with this question. I assume they are deeding the property into a trust, and you are going to be the trustee?
I have found lately working with realtors has become a big BS
As well a smoke and glass dance as to what they say the seller will do and then no you need to do this or we can not go any futher on this deal
As a Realtor and agent who works with both short sales and the investor, here is my take on an investor taking over a house with a Land Trust. It is a very risky move for a homeowner.
I have a short sale where the homeowner was promised $2k once the investor sold the home. She never did sign his agreement and I commend her for doing that. She did not feel it was the right thing to do. What most homeowners don’t realize is that when they sign over the deed, they ARE STILL responsible for the mortgage. If the investor does not do what he says he will do, the homeowner is the one that pays for it.
If she would have signed the doc, then she also would have given up her right to sell it or even list it with an agent. The last resort should always be a Short Sale.
Unfortunately these serious economic changes have brought out some of the biggest scam artists and homeowners need to have a professional working for them. If they don’t, they could lose their biggest asset and ruin their credit ever further.
I agree there are a lot of scammers out there
But there are a lot of people who are going to be kicked out of there homes and they think a blessing from above or something i going to save them in the 12 th hour
And when they have not even tryed every thing and they still get kicked out by the bank /mortgage company
Then they say things like the bank stole my home from me
So where is it all at who knows ?
But to say a open statement like there are a lot of scammmers out there now is a hard one to take and it makes it that much harder for the good guys
When it is all done and the bank takes back the property any way there credit and life is gone to hell then two
Not all agents operate this way either. I guess we are both guilty of making a broad statement. Not all investors are bad and that goes the same for Realtors. Before this market went bad, I strictly worked with investors and have been for over 6 years. I still do work with them too and there are good investors out there and I know that first hand. However, doing the short sales has made me more aware of the people who were taken when they bought their home. The sellers in these cases are not the investors I would have done business with had I known they operated this way.
It is good to hear from a good realtor and there are a few out there as iam sure
I work with just a close close group of them it # s only 2 whom i trust
Others out side of this gtoup are just as bad as some of the mortgage people and the scamming investors
I worked on a deal with one realtor here just a few short weeks ago
And it went something like this :::
I had been watching aproperty for over two years it had been on and off the market
Well it came back on the market a few weeks ago at 200 K less then it had before
IT had gone from a 1.6 to 1.4 mill
So i contacted the realtor and said could i get some copies of this properties P & L s as this was a business with real estate
They said sure the sellers need to have you do a letter of intent before they will release any financials
I said fine draw it up i will look it over and sign it
This i did with a 5 ,000.00 dollar check
Then the realtor says ::::: OH NO YOU NEED TO DO A PURACES CONTRACT AND COME UP WITH A TOTAL OF 20 + K MORE
OR NO FINACIALS
I said this is not what was said and i am not going to be doing business with you or these sellers now and the check is going to be cancled now
I all so said i could see why this cash - flowing property was still for sale and why it had been on and off the market
I saw this as BS and somke and glass as i said before BS realtor ?
I have been in the real estate business for over 12 years now and had been in the business before this time for over 10 years
So iam not a johnny come lately trying to scam any one just trying to make a buck and do some business
Nopt that any one here has said i was a scam but just putting it out there
I can understand your frustration. I have had my own set of them with REO agents but also know that they have to honor their sellers as that is their client.
I don’t do any commercial selling to not sure what the protocal is on P&L statements being released. I would think they are trying to weed out the unserious buyers.
I know with residential REO properties, there are a couple of banks that require the buyers to get prequaified with them even though they have their own financing. this is common among the bigger banks foreclosures like Countrywide and Wells Fargo. I think its primary intention is weed out those not really qualified financially to offer on the property and secondarily to gain the business on the loan possibly.
Here is what I would do…if you are interested in the property as it sounds like you are…make an offer subject to approval of the P&L statements. I would start with the $5K deposit and then offer an additional amount at a later date after you have seen and ACCEPT the P&L statements.
This way, you tie up the property until you are satisfied knowing what you wanted to know.
YES this would be a good thought but
The realtor told me that if i did the letter of intent the sellers would release the financials
Once i had done this and gave the check the rules had changed and this was three days later
The realtor says no you can not have any thign with out doing this other paperwork and more out of pocket money
The paperwork and the money all ready layed out the realtor says was now three days later not good enough for the sellers
I was intrested in this property but not any longer due to the what i call flat out right lies to me
I belive the sellers were never going to give up any information on things under the letter of intent
it would be a very dumb person whom would by a proeprty that was cash -flowing ?
With out seeing the P & L S
I found a realtor that is investor friendly and Im very open to her about my intentions either rehabbing and flipping or wholesaling and shes okay with that.
Though I went through 2 realtors to find the one I’m working with because the previous ones didnt understand what I wanted to do.
If I am seller, I will make the deal according to my terms not as per broker’s suggestions. To make myself safe from all the legal action in future, I wouldn’t mind to pay little extra bugs.