Agent And A Sub2
prop is worth approx. 325k.
seller owes 110k.
sellers are divorcing, there is a sellers agent involved at this point. what are the options (if any)to taking the prop sub2, im sure the agent will not have it. Are there any options to offer the realtor, he/she wants to be paid. has anyone ever given a realtor "paper" on the prop (with certain conditions)?
here is what im thinking....let me know please if im way off base.
Take prop sub2 the 110k
give each seller 40k to walk, or is that to generous.
give the agent 5% of the 325k list price ( he still gets paid on the original listing price) pluse 5% simple interest all due in 12 months.
now if im doing this right thats a purchase price of 207,062.50.
a far cry from the 325k listing price.
does that sound right.......id love to be refering to Cash's course right now but its not here yet........its like christmas man......i cant sleep hahahah.
thanx for all the help and suggestions.
[addsig]
In $cash's course he has a form whereby you basically have the owners end their contract with the Agent. Ive never tried it personally(the form). Im just starting too.
just cut the agent out of the picture, and yes John Locke does provide the proper paperwork to end it with the realtor.
Thanks for the advise, i will definatly attempt that route from the start.
Thanx again!
viper:
Be aware that with that much equity, the agent is not going to take being asked to cancel their listing agreement lightly. John says that you may have to go direclty to the broker that the agent is working under to get him/her to cancel the listing and even then, it's going to depend on the broker.
If you go the "pay the agent" route, are you thinking of offering him his 5% PLUS 5% more as an incentive for him to take it in 12 months? That doesn't sound like a bad deal...if he'll take it.
Is your "40K each to walk" a misprint ($80K moving money???)? If you had said $4K each, I would still think that's alot, but maybe not for that property.
What's the motivation of the sellers right now? Are they looking to recoup some equity from the deal or just looking to get out? Will they wait for their $40K until you sell or do they want it now?
Andy
andy
thanx for the reply.
the 5% i refer to is 2% more than he would get if there was another agent involved. My father is a broker and would make the offer for us (my partner and i), hense he gets the other 3% and in turn gives us that (since i work for him)money for reserve or for rehab.
however, if i offer the realtor 2% more than he would make pluse 5% simple interest over 12 months, thats still a deal for the realtor.
The motivation for the sellers is divorce. now i know that not all divorces are ugly, but, call me what you will, but i hope it is.
the 40k is not a misprint, i know that lot, but in this CA market everybody seems to think they know all about what they think there prop is worth.
even if i had to give them 40k each, if the prop is truely worth the 325k, and my estimates are correct then im talkin about a 110k margin (est.). Throw some more ideas my way, i greatly appreciate them!
[addsig]
Well, let me play a little devil's advocate here.
it doesn't sound like that you've even spoken to these sellers, but rather you're only guessing (and hoping) that because they are divorcing, that they are going to simply dump the house and run. You need to find out what these people want out of the sell of their home.
Next question, as it's been said over and over again, the CA real estate market is currently booming, often with homes selling in a week or less for more than the asking price. If that is true in your area, then why would these sellers be willing to accept a $125K discount on their property AND take payments for the equity that they do get? This is why you need to know exactly what they want out of this deal.
Now as for the agent. If this really is a possible deal, then you are going to get much farther with your offer to the agent than by trying to cut the agent out of the picture. $Cash$'s teachings on removing the agent is usually because there is not enough equity in the home to pay the agent and still sell the property for FMV. In this case, there is plenty of equity to go around and still come out ahead.
Roger
with that much eq. to gain i would offer the sellers 10k @ 5 now 5 after sell just to see where their heart is. you can always go up......kenmax
A couple of observations:
1. the sellers know what their house is worth....certainly now that they've got an agent who's listed an asking price in a hot market. They're looking at $200k. I can't imagine they'd settle for 40%. But it's a surprising world.
2. if they've signed an exclusive listing contract then that agent ain't going anywhere, just as you've rightly guessed. But why give him all that money? His agreement calls for X. You should give him X. That's all he expects. You start going over that he's gonna think you're loopy.
Good luck on this one.
Roger
Your 100% correct.
I dont know the sellers position, I thought i may get some ideas from everyone here off my original post and see what i can put together. I truely appreciate everyones input, ideas, and critiques.
thanx everyone...........Ryan
[addsig]