LLC, Trusts, Etc
I am trying to learn more about what LLCs, Trusts, etc do exactly and the details behind them related to real estate. I understand the general sense of them but was wondering if anyone knows any good sources or books to read to learn more about them and how to use them in real estate?
Are you a licensed real estate agent?
If not, are you a principle in the deal?
the principal of the deal loop hole is the one I like.
No, Im not a licensed REA. I am bringing the seller and the buyer together. how do i become a principal. please help.
FETCH, Sounds like you are a mover and a shaker... Congratulations, most people only dream of being involved in these large $ transactions. 1/2% is far less than you deserve. Maybe you should consider getting a real-estate license to list and sell properties. Then get your brokers license.
Sounds like you have already introduced the parties and if you are not careful or have something tangible in hand you might get cut out of the deal. A lot of the people in this business are sharks and they eat their own.
including friends and family members.
If you are not a real estate licensee, then how do you plan to avoid being charged for "practicing" real estate without a license?
actually, i will do that. i am not trying to have any problems. but, why are some people acting as principals on the seller side? is this okay?
In a nutshell....
A principal in a real estate transaction is someone with an ownership interest or a contract interest. A principal is a signatory on the purchase and sale contract.
If I am buying a property, I am a principle. If I am selling a property, I am a principle. As a principle, I can buy property for my own account and sell property from my account without having to be a licensed real estate agent.
If I am paid a fee by the seller for bringing a buyer to the settlement table, then I am acting as a real estate broker and must be licensed to do so.
thanks everyone!!! Yes, I have only been actively working on my own since Nov 06. I get bombarded with 20-30 deals a day and at some point I am going to have to say STOP!!!, as the compensation angle needs to be better understood. I do not want to do anything illegal, but want to be compensated for my hard work and a lot of the due diligence work I do on behalf of the buyer before I even pass a deal. Now that I understand I should not take compensation directly from the seller i am clear. But, I am reading that their are individuals that are receiving fees at the closing table with all being added to the HUD. HOW!!!! I think my frustration is everyone who have in my immediate life are telling me only bits and pieces, when I know this is simple thing.
So, my question again: Does anyone know how to, have contracts they would share for becoming a principal of a deal? Or have other legal ways to be paid above board at the closing table preferably?
Please Please SHARE!!!!
Another possibility would be to accept 1% equity for your efforts. You could agrere in advance to sell this to the buyer once the deal closes. Then you would be an equity partner.
Chris
Chris:
I like that idea as well. You mind elaborating? Have you ever done this? Contact me. NEWKID thanks as well.
Fetch,
I have accepted a percentage of equity for my work on a deal, and provided an option for that share in case they were unhappy with me as a partner- but it was a smaller deal, a larger percentage, and my goal was to keep the equity rather than to have the option exercised. However I think this is an approach that could work for you in your situation.
Chris
I am a little confused. Is bird dogging wrong? I am thinking of getting into the bird dogging business. A friend of mine is trying to sell her house to an investor. I happen to know several investors and want to be enter a bird dog agreement with them on this property and others. But I want to do what is legal so I guess back to my original question: Is bird dogging wrong?
Hey I am new to this forum.
I have been reading your posts from cjmazur, ypochris and have been wondering I have talked to attorneys and have been under the inpression that to be given a percentage of equity or to become a principle in a deal for the sole purpose of compensation is illegal! But since some of you seem to have done it before could you email me so I could ask you some questions on how! My email is **Please See My Profile**
p.s.
I would love to learn from any one who knows how to become a principle in a deal.
john thats not funny, some people may take you serious.
charlotteinvestor,
What is not funny the part about it being illegal to make a profit or that the attorneys contacted work for realtors?
I guess I was just amazed that an attorney would tell someone this tall tale, if this actually happened then this is not funny.
I would hope that the members here realize that this was my dry sense of humor approach to what was related.
John $Cash$ Locke
[addsig]
John, i did enjoy the laugh.
Interesting.
Can I talk to your attorney or who ever helped you get going because hey if you say I can be a creative investor or bird dogger with out getting punished and that I can definitley become a principal for the sole purpose of getting paid then I definitley wanna KNOW MORE.
Hey
I came back thanks for the advice Johnlocke it really helped clear everything up!!!!!
IF you come back to this forum and see this maybe you can answer me this"
Est. After Repaired Value: $530,000
Est. Cost of Repairs: $2,000
Asking Price: $376,000
Equity/ Spread Est.: $152,000 Equity
This was given to me buy an independent inspector and I want to be absolutely sure about how to go about detecting good deals. Does this have the makings of a good deal or.... ?
You need 2 years at least in business and atated (and if necessary proven income). You will also need a good credit score because you will need to guarantee the loan.
If you meet those criteria try Bank of America, National City, Key bank, GE Capital, etc. The rates will not be low.