Posted by J. Tschida on November 13, 1998 at 19:57:00:
I have leurked here for awhile and I finally have a question…(you guys are great by the way)
Speaking of finder’s fees and getting around the real estate license thing, I just read on a web site a plan to help people who are about to go into foreclosure. It involves offering the seller a price for their house and drawing up a contract with a good faith deposit (on this website they mentioned a g.f. deposit of $10) and then finding a buyer who will purchase the house for about $10,000 more than you contracted to purchase it. You sell the contract to the buyer for that amount and pocket the extra $10,000. They say it is a win-win-win situation because the seller avoids foreclosure at the last minute, the buyer gets a good deal and you get a nice middle-man commission.
I had never heard of this before…they say it is legal because you have given the seller money as a deposit for the contract…anyone have any insight on this? Legal or not?
I should point out that it was a website that was also selling a course…