Any problem with this? - Posted by JohnTa

Posted by Brian_wa on November 24, 2007 at 10:09:50:

What if I have a joint venture or partnership agreement with the seller? Would it then be possible?

Brian

Any problem with this? - Posted by JohnTa

Posted by JohnTa on November 23, 2007 at 13:56:21:

I negotiate short sales with lenders. As many of you are aware, it’s pretty tough when it comes to short sale and most short sale deals would never work out. What I’m thinking of doing is listing the properties (before buying them or taking them subject-2) via the MLS prior to the short sale negotiation being completely done. I know of a couple of agents who would list these properties for a nominal fee. I would put my name as the contact person for selling agents to contact and submit offers, with me acting as the seller’s friend. If a suitable buyer can be found at a suitable price, I could then perform a double closing or assignment.

Now, what I’d like to know is whether there may be any problem with this or not? I know that if one doesn’t have a license, one cannot receive a commission. However, there is no law that prevents someone from helping a friend selling his house as long that no commission is exchanged. Is this possible?

John

Re: Any problem with this? - Posted by Bill H

Posted by Bill H on November 23, 2007 at 16:02:52:

Yes, there is something wrong with this scenario… >>>>with me acting as the seller’s friend<<<

Re: Any problem with this? - Posted by Max-Va

Posted by Max-Va on November 23, 2007 at 14:46:10:

The short sales I have done, the shorting lender needs a pirchase contract with the SS package. They issue an approval to that contract, and request closing within 10-14 days.
Your time to list the property is limited. Subject 2 is not an option as the lenderwill not allow. I suggest you have cash or have a HML ready.

Re: Any problem with this? - Posted by Brian_wa

Posted by Brian_wa on November 24, 2007 at 08:47:19:

Can the sellers and I set up a joint venture or partnership regarding the property? This way I do have some interest in the property prior to having the seller listing it?

Brian

Re: Any problem with this? - Posted by Brian_wa

Posted by Brian_wa on November 23, 2007 at 18:38:34:

What if I act as the messenger to relay information between the seller and the selling agent? Is there any way that I could execute this scenario without much problem? Can I be the seller’s lender (by having the seller executing a promissory note with me as the lender) and help seller sell the property? What about power of attorney? Can this work?

Brian

Re: Any problem with this? - Posted by Brian_wa

Posted by Brian_wa on November 23, 2007 at 18:35:08:

Like I said, prior to a settlement letter being produced by the lender, I would go and ask the seller to list the property. So there should be some time available. The seller would be the one signing the listing agreements. I would appear in the marketing remark as seller’s friend…

Brian

Also - Posted by stan

Posted by stan on November 23, 2007 at 14:52:31:

In addition, your local MLS may have restrictions about allowing only the owner of record being able to list.

Used to, a POA was okay. Things have tightened up. But this may be a local or state thing.

Re: Any problem with this? - Posted by Kristine-CA

Posted by Kristine-CA on November 24, 2007 at 09:27:39:

Brian: what you are trying to do is done by many investors in my area.
They tie up the property using an option–with or without a short-sale
contingency. They then market the property, including using mls
listings. I can’t say if they running into any problems with the mls
listings because some of them are agents and/or have agents as part
of their teams.

The challenge, as I see it, is the short sale contingency, which you
should have to disclose in your mls listing. In my area, the short sale
contingency will keep away investor buyers. I’m not interested in a
deal where the agent is working the short sale. I know other investors
feel the same way. I think you’d have to figure out how agents are
dealing with short sales in your area. Will agents steer retail buyers
away from a short sale listing?

Kristine

Re: Any problem with this? - Posted by Bill H

Posted by Bill H on November 24, 2007 at 10:07:09:

Brian, You can be anything your conscience wil allow you to be.

However; in real estate UNLESS you have an ownership position,(legal interest in the proerty) you CANNOT be involved in ANY of the negotiations WITHOUT a license.

Drug dealers have “Goats” to transport the drugs from place to place…they get caught and jailed everyday. They have NO ownership in the drugs…just messengering them from place to place.

Re: Also - Posted by James - Michigan Inv.

Posted by James - Michigan Inv. on November 23, 2007 at 16:57:16:

I’ve used an Option to list properties before. If I
have an Option, then I’m able to list the property.

James