Agents/Foreclosures - can this deal work? - Posted by Joe

Posted by Ed Copp (OH) on April 30, 2001 at 18:53:16:

A lot of people get concerned about paying a commission, however the matter of paying a commission is between the seller and the agent you are not involved.

It sounds like you do not want to (or can not) refinance, and that you want to do a quick flip for the profit, without being personally involved. Nothing wrong with that…

Make your best offer in writing. Something like taking deed to the property subject to the existing financing IF: the seller will bring the payments current, pay the closing costs; and pay the real estate brokers commission. Now if you get that offer accepted you will have had a “good day”. If not you can work on changes here and there but at least you have a good starting point.

Ask the agent to take you along so that you can explain the offer to the seller, face to face with him or her. Keep your “cool”, you do not have to buy but the seller does need to sell. Before you go “coach” the agent to keep his cool also, after all if you do not buy he does not get paid (ever). Clean up, dress nicely. Look somewhat successful, you are this sellers only hope right at the moment.

The seller has some options here and it is important to understand that you do not know his position. He may be willing to get a personal loan somewhere and pay the expenses involved, just to get rid of this property. You do not know, and you can’t tell by looking. Assume that this is the case (he is a “sick and tired” landlord).

If this is not the case at the very least you will get a lot of information that you did not have before. Without information it is impossible to negotiate.

Agents/Foreclosures - can this deal work? - Posted by Joe

Posted by Joe on April 30, 2001 at 14:32:32:

Does anyone have any thoughts on dealing with agents who are representing properties that are going to be foreclosed in 90 days?

Here’s the situation:

Seller is behind 4 months on payments. Loan balance approx. 145,000. ARV: approx 185,0000. Nice house, excellent neighbornood. Minor cosmetic fix-up. Agent involved. Asking 165,000.

Can we make this work? How? Or should we walk away?

We don’t have cash to buy it outright. But we do know of a couple that may be interested in L/O’ing it and fixing it up (they have maybe 5-8 thousand for consideration) How do we get around the commission and back payments, old loan, etc? We don’t want to get involved with any banks for qualiying, so how do we approach the agent to do a “subject to” deal? I think the agent may balk and mess things up.