Strategy & Meth Labs??? - Posted by JDH

Real Estate Investing
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Posted by Stacy (AZ) on September 20, 2000 at 13:23:00:

JDH, I’d be careful if I were you. There are penalties for practicing agency without a license in most (if not all) states. I’d suggest researching this, or getting an opinion from an attorney. I’ve included the AZ statute below that defines the acts that constitute RE broker or salesperson activity. The key phrases are “for others” and “for compensation”. If you are not a principal in the transaction (sign a purchase and sales contract or option), then how can you prove you are a principal? Anyway, I’m not a lawyer, and I don’t know your state’s statutes, but if I were you I’d find out.

Good luck…sounds like you have found a niche.

Stacy

-------From AZ revised statutes-----------------

  1. “Real estate broker” means a person, other than a salesperson, who, for another and for compensation:

(a) Sells, exchanges, purchases, rents or leases real estate or time-share intervals.

(b) Offers to sell, exchange, purchase, rent or lease real estate or time-share intervals.

(c) Negotiates or offers, attempts or agrees to negotiate the sale, exchange, purchase, rental or leasing of real estate or time-share intervals.

(d) Lists or offers, attempts or agrees to list real estate or time-share intervals for sale, lease or exchange.

(e) Auctions or offers, attempts or agrees to auction real estate or time-share intervals.

(f) Buys, sells, offers to buy or sell or otherwise deals in options on real estate or time-share intervals or improvements to real estate or time-share intervals.

(g) Collects or offers, attempts or agrees to collect rent for the use of real estate or time-share intervals.

(h) Advertises or holds himself out as being engaged in the business of buying, selling, exchanging, renting or leasing real estate or time-share intervals or counseling or advising regarding real estate or time-share intervals.

(i) Assists or directs in the procuring of prospects, calculated to result in the sale, exchange, leasing or rental of real estate or time-share intervals.

(j) Assists or directs in the negotiation of any transaction calculated or intended to result in the sale, exchange, leasing or rental of real estate or time-share intervals.

(k) Incident to the sale of real estate negotiates or offers, attempts or agrees to negotiate a loan secured or to be secured by a mortgage or other encumbrance upon or transfer of real estate or time-share intervals subject to the provisions of section 32- 2155, subsection C. The provisions of this subdivision do not apply to mortgage brokers as defined in and subject to the provisions of title 6, chapter 9, article 1.

(l) Engages in the business of assisting or offering to assist another in filing an application for the purchase or lease of, or in locating or entering upon, lands owned by the state or federal government.

(m) Claims, demands, charges, receives, collects or contracts for the collection of an advance fee in connection with any employment enumerated in this section, including employment undertaken to promote the sale or lease of real property by advance fee listing, by furnishing rental information to a prospective tenant for a fee paid by the prospective tenant, by advertisement or by any other offering to sell, lease, exchange or rent real property or selling kits connected therewith. This shall not include the activities of any communications media of general circulation or coverage not primarily engaged in the advertisement of real estate or any communications media activities that are specifically exempt from applicability of this article under section 32-2121.

(n) Engages in any of the acts listed in subdivisions (a) through (m) of this paragraph for the sale or lease of other than real property if a real property sale or lease is a part of, contingent on or ancillary to the transaction.

(o) Performs any of the acts listed in subdivisions (a) through (m) of this paragraph as an employee of, or in behalf of, the owner of real estate, or interest in the real estate, or improvements affixed on the real estate, for compensation.

And…the definition of compensation…

  1. “Compensation” means any fee, commission, salary, money or other valuable consideration for services rendered or to be rendered as well as the promise of consideration whether contingent or not.
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Strategy & Meth Labs??? - Posted by JDH

Posted by JDH on September 18, 2000 at 19:41:07:

I’m not to sure what the strategy is called that i use.
the closest one i can think of is wholesaling/flipping.
all i really do is Locate the properties come to terms with the seller and then just bring in the buyer, as for my profit i take 10% of the investors profit margin. so is this a type of wholesaling?
Now for the other question, every month i get the list of all the closed/boarded properties in my area, Now about 75 of the properties have been closed because they were Meth labs, So the question is, if a property has been closed for this reason is there a market for us? or is it easy for the owner to get the house back?
any advice would help.
thanks again, and i hope you’re having a Great Day, cya!
Sincerely,
J.

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Re: Strategy & Meth Labs??? - Posted by Bo (GA)

Posted by Bo (GA) on September 19, 2000 at 07:37:20:

See http://www.insideselfstorage.com/articles/021FEAT1.html

Bo (GA)

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Re: Strategy & Meth Labs??? - Posted by cem

Posted by cem on September 18, 2000 at 23:57:19:

do a double escrow and you are legal it costs a bit more but is worth the safety

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Re: Strategy & Meth Labs??? - Posted by dewCO

Posted by dewCO on September 18, 2000 at 23:09:28:

Don’t think Claude is correct, hope he’s joking. But check with the governement ageceny that closed the house and find out what happens, then let us all know!!

Good question, but don’t know if all counties, or states would have the same response and procedures. Should be a good way to pick up properties though, if you can unravel the govt. paperwork.

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What’s a meth lab? (ignorance is bliss!) NT. - Posted by Tim V.

Posted by Tim V. on September 18, 2000 at 21:47:43:

nt

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Re: Strategy & Meth Labs??? - Posted by Claude (Sacramento)

Posted by Claude (Sacramento) on September 18, 2000 at 19:56:01:

I believe the strategy is called “illegal” unless you are actually drawing up a contract to purchase and then assigning the contract to your buyer.

Claude(Sacramento)

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Re: What’s a meth lab? - Posted by Pam WA

Posted by Pam WA on September 19, 2000 at 23:34:24:

assuming your question is sincere…

Methamphetamine labs are where illegal drugs are manufactured, often in rental properties. Many volatile ingredients are used in this process (that’s why you sometimes see reports in the paper that a lab has blown up). These volatiles permeate the structure. In Washington state, due to health hazards, meth lab houses are often torn down. I don’t know if this is after the government seizes the home, but certainly the health dept. can revoke occupancy certificate if questionable.
Hope this helps.

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Strongly disagree!!! - Posted by JDH

Posted by JDH on September 20, 2000 at 02:33:50:

Maybe you misunderstood me, i don’t represent the buyer or sell in the transaction and i’m not collecting a fee for doing so. I personally think this is why so many people stop invests or never start.

The less money you have to invest the more creative you must be, Yes the buyer that i bring in could easily rip me off, w/ me having no contract, but w/ me bringing in great deals to him it’s more profitable to be on my good side.

We agree (me & buyer)on the amount i make over a hand shake.
(I don’t believe that is the best way to do this but when i started i didn’t even have the money to do a title search for the property that i wanted to flip/wholesale, So i have to change my appoach to the deals), but mostly it’s 10% of the buyers profit line to make it worth my time.
See (my/the) buyer is the one buying the house, not me, He does give my a finders fee and pre-screening fee. w/ me paying a fair share of taxes on the profit i have made, keeps it legal. Now as for the seller, they know exactly what i’m doing, if they get their asking price or a price they like, then they have sold there house plane and simply. I also use realtors allot to find me deals, Being honest and straight forth with people, can get you allot, but in real estate everything that’s not on paper is just hot air, so you can lose some deals but that’s life, having good business relationhips can help cutt down the chances. my business is not brokeraging real estate, It’s more like Locating and pre-screen prospects as my own business for my own profit. Well it is getting later here, and i think i’m rambling off, so i best be going.

Now maybe i’m completly wrong. SO If you have some good references to back up your theory, i would like to hear them, i don’t want to be doing illegal things :slight_smile:

Thanks for your time, and i hope you having a Great Day!
Sincerely,
J. Hopkin

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Re: Strategy & Meth Labs??? - Posted by Lance

Posted by Lance on September 18, 2000 at 22:11:47:

Claude s/he isnt talking about running a meth lab.

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Couldn’t of said that any better :slight_smile: - Posted by JDH

Posted by JDH on September 20, 2000 at 01:16:09:

.

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Yes, it was sincere. Thank-you! NT - Posted by Tim V.

Posted by Tim V. on September 19, 2000 at 23:59:59:

nt