Can I Do This?
I have a client that wants a home that is being sold by someone else. Is there anyway that I can make the spread on what the seller is asking and the price I quoted the house at. Can the spread be listed on the HUD somewhere payable to me or my company?
Anybody?
If you are not a licensed Real Estate Agent or Broker, you must be a principal in the transaction to collect payment when a property is sold. If you own interest in the property you can get paid. If not, then no.
Let me understand you correctly....it sounds as though you have a property that you can buy at lets say $100k and a buyer who will buy at lets say 120k. You want to know how to profit on that spread?
Well the answer is yes you can do it and there are two ways without being a real estate agent:
1. Assignment of contract. Using the numbers above you'll sign an assignable purchase agreement. You contact your new buyer and tell them that you will sell your rights to buy it at 100k for 20k to be paid whenever you choose.
2. You can do what is called a double close. This helps prevent the end buyer from knowing how much you made. You sign a purchase agreement with the seller and another one with the buyer. The end buyers funds are used to pay off both closings at once. Not all title companies or attorneys will double close.
GOOD LUCK
You can also do an option. Tell the seller that you want to find a buyer. The seller agrees to sell to your buyer for 100k. Your buyer agrees to buy for 120k. You seller writes a purchase and sell for 120k to your buyer. you show up on the HUD as a seller expense for 20k.
An option saves you double closing costs ( which can be 6% of the price) but shows everyone what you are making.
If these are regular clients or friends, chances are they will find out anyway. There are no secrets. Just think about your client, how good of a client are they, and would you lose them as a client if they found out that you were making money off of their RE transaction.
Brenda
Either of the above two posts describe methods you can use to establish yourself as a principal in the transaction.
Jeff
Is there a downside to this? Can the seller object? What would the listing show?