Find Good Tenant/buyer For The Seller, What's In It For Me?
Hi,
Let's says I found a "for rent" sign and contact the seller. I also know someone willing to rent-to-own., and I was able to convince the seller to rent-to-own to the tenant I've found. How much money should I expect to get from the seller? says the house worth $600,000.
thanks in advance.
You should expect to get whatever you are able to negotiate with the tenants, and/or the landlord before you put the two of them together.
However, you need to be careful. It is not legal for you to act like a real estate agent without a license.
thanks.
sounds scary.
If you want to get a view of what it takes for you to get into a Lease Option contract. Purchase "How to Create Multiple Streams of Income" by Peter Conti and David Finkel. It will give you a good over view.
There are not contracts in the book. Their courses are expensive and I would not advise you to go into the Mentor program unless you have money to burn. But there book is a nice start.
Remember, "Knowledge is expensive. Expect to pay in hard cash, time or mistakes."
Yes I am quoting myself.
Consider being the meat in the sandwich!
If you do a lease option with the seller and have your friend do the same with you, and earn a little interest on the spread and a bonus when the house sells, then you are not acting as a real estate agent - but of course if your friend defaults, you get to find a new tenant AND keep their down payment!
To say that it is illegal to act as a middleman, or as an agent is thinking in the box. A person that would say this has not one creative bone in their body. I would agree that you should be carefull, but there are lots of ways to make money acting as a middleman.
You could write the ls option agreement in your name, include a paragraph that gives you the right to assign, and sublet (rent it out to someone else), then sign an agreement with your friend for them to ls option from you. You get the difference each month in rental payments, the diff between the deposits, and the diff between the purchase prices (obviously you will charge a little more than the seller / landlord)
Alternatly you could have your friend sign an agreement saying that you will help them, as an independant contractor, do the necessary work to find a property. You are essentially their worker. They agree befor hand to pay you $18,000 if you can sucessfully help them find a property. You can set the fee to be whatever you want, I would not make it a percentage of the purchase or you are getting a little too close to acting for a comission, but if they are shopping 600K+ homes I would think $15K would be reasonable.