Need Help Gettnig Property Under Contract And Then Assigning Contract
How would I go about getting a property under contract. The broker is now telling me that I must put 10% down on the contract. Is this how it always takes place or no?
Its an all cash deal. In case that helps.
A Broker or agent ( especially if they're not familiar with what your doing ) Will almost always want you to put down a significant amount to hold the contract. Just remember EVERYTHING is negotiable. If you have a personal relationship with the broker they may be able to work with you a little bit. I deal with an agent, that's new to the business as I am, but , she's willing to learn and be creative with our transactions. We have an agreement set. She isn't in the business of dealing with properties in the price range of what I'm looking for, but she sends me listings on a regular basis. No matter what the sale price of the home is she gets a set commision that can;t go below a certain dollar figure. She doesn't have to do anything but give me listings and give me the key to the lock box. It's a nice set up.
I've found that the deals with greater profit margins and less hassle ( dealing with an additional party ) are with dealing woth the seller directly. If you're not familiar with how to contact sellers, check out the marketing forum or PM me and I can tell you what has worked for me so far
Hope this helps
My profit margin is great enough that I can offer the broker around $200,000 for helping set this up. He knows exactly what I am trying to do, the $200k, even though it seems like alot, would be worth it for him to just try and get the sellers to allow me to get the property under contract. Is there any other way of making money off of this?
By "broker" are you referring to a real estate agent? On a normal transaction there is a usual 7% commission. 10% down is common with listed properties that are available under contract, since the seller only ends up getting 3% down. Anything under 10% and it would not be adequate for the seller to take the risk of a contract buyer.
Quote:
On 2004-06-02 13:35, LGNFinancial wrote:
My profit margin is great enough that I can offer the broker around $200,000 for helping set this up. He knows exactly what I am trying to do, the $200k, even though it seems like alot, would be worth it for him to just try and get the sellers to allow me to get the property under contract. Is there any other way of making money off of this?