New Partnership On Pure Options!!!

[Gordon Holtner 0]

Puls 1234

 

Are these deals from motivated sellers?

[puls1234 0]

Rich,

 

I tell the homeowner that the realtor will be calling him asap later today. The realtor and I list at the same price. That way it makes it an equal playing field when we each try to sell it. But remember, whomever sells it I don't care b/c I am getting paid either way!

 

Pete

[puls1234 0]

Gordon,

 

They range from unmotivated to motivated. Most people love it because they have 2 people working on selling their home instead of 1!!!!!

[Adam King (MI) 1]

Pete,

Well, looks like we get to put your idea to the test. I just had a deal cross my plate today where I'm going to make a similar offer. The Realtor is waiting to hear my pitch tomorrow.

I'll keep you posted,

Adam

[puls1234 0]

Awesome Adam!!!! I have listed 4 homes with my realtor this week!!! If I sell them great, if he does great!!!!!

 

Pete

[Adam King (MI) 1]

Pete,

The pitch to the Realtor didn't go so well. She sounded new and confused by it but will run it passed her broker.

 

But I pitched to two Realtors on my team at a meeting this evening and they loved the idea. So they're on board. (One of them is a board of Realtors President!) We have several properties we can try it on.

Looks like you and I are going to have some stories to talk about soon.

Regards,

Adam

[Gordon Holtner 0]

Hi Puls 1234 and Adam

 

I just got MC's course I understand now what you are doing the comission being paid to the realtor is just the buyer agent commission and the selling point for this program is that you sell it faster for less commission is this correct? I think this is a great idea!!! Adam since Puls1234 friend is a realtor I don't know if they have much in the way of a signed agreement but the way you are planning to do it are you using some kind of consultant contract for the realtors you are planning to work with?

 

Gordon Holtner

[West Coast Girl 1]

Hummmmmm!

 

Well I've got a deal set up my realtor too!

 

My realtor gives me comps on everyone, anytime .... no probs!

 

If I get the deal and make lots of money (I cut him in too, big time).

 

If he gets the deal (listing) he gives me 25% of his commission!

 

 

THE PROBLEM I HAVE?:

 

Well, first of all, a lot of "the sellers" will already have it listed with a realtor. I say sorry, I can't help you!

 

I get a call from someone who's thinking about listing. I give them their "OPTIONS"!

 

I say, well, if you don't want to deal with me, "Well I know of an EXCELLENT realtor who is on the ball and will move your property FAST!

 

They then say, well, I guess that I will just list it with my friend!

 

Hate to say this, but in this community, THEY stick together!

 

I don't know how many people that I have spoken to and have wasted time on and have tried to refer them to MY realtor and they have ALL turned me down!

 

By they (like I said, I hate to say this, but), the Asians and East Indians stick to their own kind.

 

With that being said, I haven't been able to solidfy anything to date ... it's been two *$#&^$_&%( years now!)

 

I really HATE dealing with people, here in Vancouver, now!

 

They are ALL GREEDY!!!!!I

 

HOWEVER, when the market turns, which I know is anytime now, I WILL BE THE GREEDY ONE!

 

I will pick and chose who I WANT to help!!!!!

 

They had their chance!!!!

[Gordon Holtner 0]

West Coast Girl

 

Holy Jeez woman!! I'd hate to be the one to piss you off Have you thought of doing consulting? Then you wouldn't have to deal with the greedy people in Vancouver. I was thinking of working my own area which is Edmonton and Ft Mcmurray then branching out with consulting. I've read a bit about Adam's successes in this area and feel like giving it a shot. What do you think? By the way I do agree with you that Asians and East Indians do stick a bit to their own kind but in alot of cases it is just easier for them to speak in their first language then go with their second third or maybe fourth which is English. plus having the same background puts people at ease.

[Sold ! 0]

Be careful, everybody !

 

In most states, a real etstate associate can NOT offer referral fees to ANYBODY for leads like that.

 

I will find the exact wording for you for Florida when I get a moment, but, if you do it......don't wave a big flag about your lucky new "partnership", OK?

 

Very stiff penalties for getting caught.

 

Regards,

[Guest Rob P]

I really like this idea in theory but here's what I don't get. So you meet with a seller and option the house. Let's say you option for below market value. Now, the seller then sees the inflated price of his house on the mls, well, if I was the seller, I would be thinking, I might as well just have listed it myself with this agent. Then I would stew about how much money I would be losing if either of you sell it. Is this an issue or not? Rob P

[Sold ! 0]

Rob,

 

There's one of my concerns, too......kinda makes you go hmmmmmmmmmm for a while, right?

 

Here's what I came up with when I thought about it, though. If I'm a seller and I want to sell my house bad enough (motivated) I will listen to just about anybody who has a solid idea to do so if the guy's not trying to screw me over.

 

Let's say the value of the house is $200K and Pete comes along telling me he thinks he might have a buyer interested in it, but to make it work for everybody, the best he can do is $150K and would like to take a 60 day option. If I have to sell and I'm not getting screwed, I just might take him up on that option.

 

Then, he tells me he has a friend who's a realtor that he can call on to list the house, also. And he'll list it for FMV of $200K. Now, I'm thinking, "Wow, Pete may have a buyer and he's got a realtor who's gonna jump in......this house could sell FAST !"

 

That scenario is very enticing if I MUST sell it as quickly as possible due to circumstances beyond my control (divorce, transfer, job loss, etc = "m-o-t-i-v-a-t-i-o-n").

 

If Pete finds a buyer, he exercises his option and buys my house for $150K, which I agreed to.

 

If the realtor finds a buyer, I sell for $200K - 6% = $188K - minus closing costs, etc.

 

SURE I'm "routing" for the realtor right now, but in the situation we are talking about, I HAVE TO SELL. It's not about "WANT TO. And THESE are sellers you need to find to make ANY of these strategies work.

 

It's not going to happen with every house. The secret to investing and making money is finding the MOTIVATED seller.

 

Don't overthink it from your perspective, which is what I think you did. You are NOT a motivated seller. Put yourself in their shoes (like I tried to illustrate) and it's an entire new perspective on the way somebody thinks when they are introuble.

 

Hope this helped.

[Guest Rob P]

If the realtor finds a buyer, I sell for $200K - 6% = $188K - minus closing costs, etc.

 

Sold, What??? Is this right? So if the realtor sells it then you don't exercise your option? Why wouldn't you exercise your option? If this is true then I really don't get it. If the realtor sells it you'd be better off giving him his full commission after exercising your option to buy (with the numbers we are using here). So realtor sells for 200, give him his full 12K commission, you take the other 38K. Umm.. am I missing something here because the other way you get 25% of 12K if the realtor sells. I just don't understand why you wouldn't use the option you worked so hard to get. Rob P

[Adam King (MI) 1]

Hey guys/gals,

Let me take a crack at explaining this thing.

 

First off, any property already listed with a Realtor is going to be a bugger to do a deal on if you aren't paying cash. So keep that in mind. Also keep in mind that it "can" be done. I have done it and YES sales skills are a MUST. I know that contradicts what I have said before but this is on a different level.

 

Don't think of Realtor's as pieces of meat. They aren't just there to do comps. The relationships that I have with my Realtors are partnerships. With that comes an understanding that I KNOW what I'm doing and they trust it. They also trust themselves to tell me when I'm out of line or if my thinking is flawed.

 

Here's my take on Pete's idea:

 

The sale price of the property does not have to change if it works. I DO NOT advocate inflating anything over what anything is worth. I do however believe in leverage and that is all this is.

 

I can call a seller and say two things. One, I will purchase myself or two; I can control the property and move it or assign my interest to another willing party. (Full disclosure is MANDATORY on an option!!!) But, since I'm a professional and work with Realtors, I'm going to hire one with my option. Yes, that's STRAIGHT OPTION. I disclose that to the seller and tell them we're both going to work together because that's what we do. I'll be trying to find a buyer to assign my interest and my Realtor will be helping me by listing it on the MLS. The only question here is if they represent me or the seller. (See below)

 

Now here's where we can get into some details. If I find a buyer and assign my option, then my Realtor gets a cut that goes through their broker. (In most cases my Realtors ARE the broker so that's cool too.) If they find a buyer, then I can get paid two different ways. One, I can get paid through my option from the buyer (Which can complicate things from a lender's point of view) or two; I can get paid through the seller as a marketing consultant. That may include another agreement with the seller so I'm still acting as a principle (Now a partner) and can even go directly on the HUD form.

 

Adam since Puls1234 friend is a realtor I don't know if they have much in the way of a signed agreement but the way you are planning to do it are you using some kind of consultant contract for the realtors you are planning to work with?

 

Just a quick Note: I was just on the phone with my Realtor/Broker and before we get our hands too dirty we're going to run this by the Board of Realtors Attorneys first thing on Tuesday. We're then going to run it past a regular real estate attorney (Who isn't putting it up against the Realtor's code of ethics) and see who says what. My questions were to verify the difference (If any) of how I did this stuff in the past. In the past the contracts were as follows:

 

1. Option to purchase/lease/assign with seller

2. Dual agent agreement with Realtor representing the seller and myself

3. I got paid by assignment

4. Realtor got paid by Purchase Agreement. (Standard) If it was a CA, they got paid part of their commission from the option and waited until the sale to get the rest from the seller as commission.

 

Just remember that if you're doing a deal you need to act as a principle. With or without a Realtor.

 

I hope that clears things up a bit. If not no biggy, you can work up to it. Keep in mind that even with Pete's idea I still run it past my team to make sure the ducks are in a row. Also keep in mind that as Pete has said there's always other ways of working this business. There's always other ways of compensation and doing things.

 

By they (like I said, I hate to say this, but), the Asians and East Indians stick to their own kind

 

I disagree (But not totally) with that statement (And no, I don't see it as racist) because I have grown to be able to work with everyone. I come from a VERY diverse background and know that if people see me as knowledgeable and capable they'll go with me over someone else just because they’re the same race. There may just be something in your presentation that needs work. That's not said to be an insult. I just get along with everyone because I show equal respect and DEMAND it back in return. I live with every race, religion (Christian, Hindu, Jewish, Muslim etc) and people from every walk of life you can imagine. Staying diverse is KEY to living a fulfilled life no matter who you are or where you live.

 

Heck, I even like Italians!

 

In most states, a real estate associate cannot offer referral fees to ANYBODY for leads like that

 

You can give a Realtor a referral fee all day long if it goes through their broker. There's nothing wrong with that. You CANNOT give them a referral fee for a loan though. That is a certain trouble for them if RESPA finds out!

 

I say, well, if you don't want to deal with me, "Well I know of an EXCELLENT realtor who is on the ball and will move your property FAST!

 

That right there is giving up the sale. I would say; my TEAM will work hard to sell my option/the property FAST. I have Realtors that work with ME so you're getting the best of both worlds. Get your option signed DON'T give it away!

Hope that helps,

Adam

[Sold ! 0]

2. Dual agent agreement with Realtor representing the seller and myself

 

VERY illegal in Florida. It violates the fiduciary responsibilities you have with either of the parties.

 

ALSO, (Back to an earlier subject) according to Florida law, it is ILLEGAL for a licensed broker or sales associate to pay an unlicensed person any sum of money for the referral of real estate business or for performing any real estate service unless specifically exempted. That exemption being a property management company or an owner of an apartment complex paying a finder's fee or referral fee of up to $50.00 to an unlicensed person who is a tenant of the apartment complex.

 

Then again, it is also illegal to run a red light, but people do it all the time. It's when you get caught that the trouble starts.....

 

Regards,