Difference between a CA and matching seller and buyer

[hanwellboy 0]

Hi all, and happy holidays.

I seem to be encountering some resistance towards the structuring of a CA from both sellers and TB's. Most of the sellers I've spoken to seem to understand the concept, but are reluctant to have 3 people involved in the deal.

Can I not work as a middleman, and match the buyer and seller and collect a fee from either or both of them? Or is this blurring the line between investor and real estate agent? My fee would come from structuring the deal and matching buyer and seller, but my name would be nowhere on the contract to lease or to purchase. I would essentially be providing a service.

Please let me know what you think.

[MichaelC 160]

My initial reaction is that you are talking too much, going into too many details. If so, you may be confusing the homeowner, and that always means they'll say no. I'll be very surprised to hear that t/b's are also reacting to you this way.

What are you saying, and what are they saying?

[hanwellboy 0]

My initial reaction is that you are talking too much, going into too many details. If so, you may be confusing the homeowner, and that always means they'll say no. I'll be very surprised to hear that t/b's are also reacting to you this way.

What are you saying, and what are they saying?

 

I've thought of that. I've explained it in as 'layman' as I can get. The reaction I get from sellers is "why do we have to sign a lease agreement with you, then you assign everything to the buyer"?. Why can't I just sign a contract with the buyer? I've explained that if I don't do it that way I could be hassled by the realtors. I think I may be starting to doubt myself. That's why I asked the question. As for the TB's, they are concerned about the assignment contract. Probably because they have never had to deal with something like that before. I have been getting pretty good response by both sellers and TB's to the initial offer, but things seem to cool off soon after. I am quite sure I am coming off as professional and knowledgeable, maybe it's just that most people in my part of the country havn't heard of lease purchasing before.

[Doug Pretorius (ON) 9]

Welcome to creative real estate investing in Canada. What you're describing is completely normal in my experience as well, especially what sellers are saying. There are very few sellers in Canada who will allow you to make a profit from their property. I've even been hassled by a seller after I bought their house traditionally, they were pissed off that I was reselling for more on a L/O.

 

I doubt it has anything to do with you or what you're saying. Sellers who need our services are few and far between, generously 1 in 100. So if you're not willing to grind out the numbers game, you have to buy the houses cash. Or you could move to the states.

[hanwellboy 0]

Welcome to creative real estate investing in Canada. What you're describing is completely normal in my experience as well, especially what sellers are saying. There are very few sellers in Canada who will allow you to make a profit from their property. I've even been hassled by a seller after I bought their house traditionally, they were pissed off that I was reselling for more on a L/O.

 

I doubt it has anything to do with you or what you're saying. Sellers who need our services are few and far between, generously 1 in 100. So if you're not willing to grind out the numbers game, you have to buy the houses cash. Or you could move to the states.

 

 

It does get frustrating at times, but you've got to keep going forward. I have also debated whether to buy outright and then do a lease option. I think I would have more success. But then I think of the landlord gig and shudder - been there done that.

How about you Doug, or Michael? Do you buy and then lease option along with doing CA's? I am reading everything I can get my hands on in terms of creative real estate. Does anybody have any good books they could recommend?

[GetSmart 0]

if your seller isn't motivating you will begin to doubt yourself. they come up with some of the most mind bending questions. find a way to get off the phone as soon as you explain a question and still getting resistance.

 

always be reluctant and never over zealous.

[Doug Pretorius (ON) 9]

It's definitely much easier to buy outright and then sell on a L/O. But there's also more risk to go along with it. I did it a number of times and then ran out of credit and partners. Most partners don't want to risk their credit unless you buy way below market value, which of course brings us back to finding highly motivated sellers. But if you have highly motivated sellers then you can buy creatively from them and don't need partners

 

GetSmart, good advice that's hard to stick to when you find yourself running out of leads before you meet a single motivated seller.

[MichaelC 160]

hanwellboy, sure I'm a buyer if the numbers are right. But even if that is so, getting a mortgage these days is tough, particularly for an investment property. Private funds are an option, buy there are many scared folks sitting on cash right now. If you can lure one or two off the sidelines, and you can make cash offers, you can score some sweet deals. At least here in the States.

[dionwisn 0]

Hi all, and happy holidays.

I seem to be encountering some resistance towards the structuring of a CA from both sellers and TB's. Most of the sellers I've spoken to seem to understand the concept, but are reluctant to have 3 people involved in the deal.

Maybe you could try offering to split the option money. Something is better than nothing.

your explaining should be simple. I have the option to buy your house outright in 1-3 years meanwhile I'll be paying you X amount to rent it out.... Let them know your a property management company.

[<Steve> 82]

My initial reaction is that you are talking too much, going into too many details. If so, you may be confusing the homeowner, and that always means they'll say no.

MC taught me that even though I am hungry for the deal not to be a "motivated buyer" The initial contact with the seller should be to get their property info. and to find out their motivation for selling, and also briefly describe what you do and the advantages. Don't sell your wares; you don't have to buy, but the seller has to sell. You're in control. Just get the information to see which L/O technique will work.