New Partnership On Pure Options!!!

[puls1234 0]

Well I have just partnered up on Pure Options with the number one real estate agent in my state who happens to be a very good friend of mine!!!!! Here is the scoop.

 

 

When I sign up a pure option I tell the homeowner that we have a DUAL SELLING STRATEGY. I handle the investors and families who are looking for homes that don't want to work with realtors and my partner, the number 1 real estate agent in my state, will try to sell your house from the mls and realtor perspective.

 

The homeowner loves this double team strategy because I tell him we sell things twice as fast.

 

Now, if I find the buyer myself my agent friend does the paperwork and I give hime 25% of what I make.

 

If he finds the buyer for the homeowner he gives me 25% of his commission after the closing.

 

Why is this so good? Well, I have just created a way to move houses so so so much faster and do an enormous amount of volume. Rather than doing them on my own and not move near as many houses!

 

Real estate is such a great business!!!!!

 

This might be a great strategy for all of you out there that are doing pure options and have a good friend that is a real estate agent.

[Sold ! 0]

RE commission vs No RE Commission.

 

Unless I am missing a point here, what's in it for the buyer? The PRAYER that you are the winner and find the buyer first?

 

Maybe I need the details of the deal with the seller.

 

Are you getting a deep discount on the purchase price on the option?

 

Does the realtor sell for full retail price and subtract the commission making the deal monetarily the same either way you slice it? Seller walks with the same amount of money and you guys make a profit, large or small?

 

Help me, Pete.

 

I'm not getting it...........

 

 

P.S. In my state:

If he finds the buyer for the homeowner he gives me 25% of his commission after the closing.

...this is very ILLEGAL !!

[Adam King (MI) 1]

Pete,

That's very creative! We also have Realtors list our properties on the MLS as "rent to own", "seller financing" or "Full 6% seller concessions". We give them a $500 referral fee if it moves. They take the calls and if it goes retail get a 3% commission and do the paperwork. We get a fee as a "marketing services" which is displayed right on the HUD. This way there's no straight option to scare the banks off. But we're still acting as principle because of our CA!

 

Rich,

Unless I am missing a point here, what's in it for the buyer? The PRAYER that you are the winner and find the buyer first?

 

The buyer is getting two people selling for the price of one. Leverage baby! I love it.

Cool stuff,

Adam

[Sold ! 0]

Can you show me some numbers and make this work for me?

 

Thanks.

[Sold ! 0]

For example:

 

What's a typical deal with the seller look like?

 

Example:

 

Value: $200K

Option Strike Price: $150K

 

You sell it for $180K and pocket $30K, Realtor gets $7500.00?

 

Realtor sells it for $180K, gets a 6% commission and you get $2700.00?

 

I'm just wondering how the numbers work out and why the seller AND the realtor can agree to do this. Again....I think I am missing a very important piece of this puzzle.

 

Thanks,

[puls1234 0]

Rich,

 

Its very simple. Lets say I have an option on a place for $150,000. I try to sell it for lets say $175,000 and so does my realtor. If I sell it I make $25,000. I give 25% of what I make to my realtor. And vice versa: If my realtor sells it I get 25% of his commission. So I don't care who sells it I win either way and we sell homes faster!!!!!

 

Pete

[Sold ! 0]

So, Pete,

 

I have a few questions, if you don't mind:

 

How do you approach the seller? What do you say to the guy? How do you describe your partnership with the realtor?

 

And does the realtor LIST his house and put it on the MLS?

 

Are these "motivated" sellers or anybody that is selling a house?

 

How long is your option for, usually?

 

Are you leaving enough of a spread so you could flip the contract to another investor for some quick cash?

 

Inquring minds want to know..........

 

Rich

[Craig 0]

Pete,

That's very creative!  We also have Realtors list our properties on the MLS as "rent to own", "seller financing" or "Full 6% seller concessions". 

<{POST_SNAPBACK}>

 

Adam:

 

In NY the brokers really want the realtors to get the listings in their agency. Thats a PLUS for the broker. By partnering with a realtor as Pete mentioned you are bring more listings to the broker also.

[vmoney 0]

Rich,

 

  Its very simple.  Lets say I have an option on a place for $150,000.  I try to sell it for lets say $175,000 and so does my realtor.  If I sell it I make $25,000.  I give 25% of what I make to my realtor.  And vice versa: If my realtor sells it I get 25% of his commission.  So I don't care who sells it I win either way and we sell homes faster!!!!!

 

Pete

<{POST_SNAPBACK}>

 

So let me understand this. What happens to the 25K spread if the realtor sells it? Let's say the realtor sells it for 175K, your contract with the seller was for 150K right so how does the 25K and the re commission get handled at closing?

 

Thanks for your patience I just want to make sure I understand this.

 

Vito

[puls1234 0]

If the realtor sells it he gives me 25% of whatever commission he got. Its that simple.

[puls1234 0]

Rich,

 

This is what I say to the seller.

 

Mr. Seller I have a tremendous program for you. I have recently partnered with the top real estate agent in my area. What does this mean for you? Well, not only will you get my services looking for the private investors and single families from other areas and states, now you will get a realtor who will be looking for a buyer through the MLS, other realtors and all of his other numerous marketing techniques. Because of this we can often sell your home twice as fast!!!!! Lets get started....

[Sold ! 0]

OK, thanks, Pete!

 

Obviously, the seller needs to be somewhat motivated to sell his house if he's going to entertain the idea of giving you an option on it in the first place, right?

 

I see the great potential here for everybody involved. But, the thing I guess I am missing is this:

 

(Example) You get a seller to agree to a 60 day option to buy his $200K house at $150K.

 

1. What is the realtor trying to sell it for...$200K? (FMV)

 

2. Once you have your option, do you introduce the realtor and they jump into action and list it with MLS?

 

He's trying to sell it at $200K and you're trying to sell it to your buyer at $175K or better, right? Somebody's going to sell the thing and everybody wins.

 

I'm just trying to understand the sequence of events.

 

Appreciate the feedback !

[Gordon Holtner 0]

Hi People

 

I must be missing something, too. If you have an option on a house for $150,000 and are selling it for $175,000 in this case how do you get the $25,000? As an assignment fee? If $175000 is FMV how would this work? This is a straight option right? I like the idea of the leverage, like Adam said. I think this could work. I just don't understand yet.

[Sold ! 0]

Hi People

 

I must be missing something too if you  have an option on a house for 150 000 and are selling it for 175 000 in this case how do you get the 25000? As an assignment fee?

<{POST_SNAPBACK}>

 

Well, THAT I can help you with (I'm still fuzzy on the rest of my questions above.... )

 

You have an option for $150K and are selling for $175K. You CAN assign it, I suppose, if somebody can come up with the $25K. But, most often, you will exercise your option and buy at $150K, then turn around and sell the house to your buyer for $175K.

 

Regards,

[Gordon Holtner 0]

Hi Sold

 

I thought it might be a flip but I am never sure about these transactions because some lenders have the title seasoning issue, which I think will hit Alberta, Canada because organized crime is doing a ton a of bad flip deals. Former meth dealers are getting in and the banks aren't doing much. They're not even reporting it to the police or launching civil suits, but that is off topic. Thanks for the clarification. I appreciate it.