Posted by Doug (ON) on October 12, 2001 at 14:40:31:
I did find one deal through a realtor, but that was in a depressed market several hours away from where I live.
In any half decent market you won’t find motivated sellers with realtors, in fact, realtors make people less flexible by promising them FMV or more in cash. They give them stories about the house down the street that sold in 1 week with 21 offers and they got 20% more than they were asking (actually heard this one from a realtor acquintance of mine)…AND YOU CAN TOO, just sign with me!
It costs much less to find sellers yourself. Don’t kid yourself, the commission might come from the seller, but the seller just puts the price up by the amount of the commission, so you’re paying for it anyway.
Besides, it’s nearly impossible to get a L/O deal through a realtor. And L/O is all I do. I should point out that the one I got through a realtor was not an L/O.
I have been reading a lot about getting a lease option under contract and then assigning the contract to another buyer for a decent profit.
It seems like a great idea with limited time in the deal and you walk away with money and no worries.
BUT
I have also been warned of the possibility of being perceived as a realtor by doing this type of deal.
has anyone out there doing lease option assigning had ANY problems legally?? I read JohnBoy’s article GETTING STARTED…NOW WHAT! And was totally SOLD on the idea of assigning since I am new to the business and don’t have a decent cushion in the bank.
Posted by Doug (ON) on October 12, 2001 at 14:24:43:
It’s possible that some realtors might whine. But as long as you have an option to sell, then you are carrying on a perfectly legal business transation with your personal holdings.
Remember, when you have an L/O on a property, then whatever you do within the confines of that agreement, you are doing as the principal.
The difference with realtors is that they have no legal interest in the properties they sell.