Mastamike6 1 Report post Posted June 25, 2012 I am working with a homeowner now who is agreeing to do a CA but is fearful that I have no incentive to have the tenant-buyer close on the purchase and wants to work in my compensation to the closing of the purchase. I plan on explaining to him that we collect the application information, qualify them, and then present them to the owner for approval before assigning our contract. However, I was thinking of counteroffering to him if I could get a larger piece of the option money. I want to be careful and not accept a commission at closing (I am not a licensed agent), but if i can work a larger payment and work with the tenant-buyer as I would anyway to get it closed then even better. Any suggestions on how I should work this? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 25, 2012 Mike, what is your current deal with the homeowner with regards to the option money? Are you keeping it all, or is there a split of some kind? Share this post Link to post Share on other sites
Mastamike6 1 Report post Posted June 25, 2012 I had agreed to give the homeowner $1300 (equal to one months rent) of a $5000 option fee. I may go back to him and ask for his portion to be held in escrow and credited back to me upon the exercising of the option. A little extra incentive for me and he doesn't give up much to ensure I have skin in the game (even though I don't) Is there as better way to structure this? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 26, 2012 One month's rent, (in this case, $1,300), is a very fair split of the option consideration. If the homeowner is concerned and wants you involved to some extent, I think your idea is a good one: he pays you back that $1,300 if/when the t/b exercises the option. The problem with this is being seen as brokering without a license. Perhaps an agreement on the side, a Promissory Note calling it a finder's fee, would be an easy way to protect your interest. Share this post Link to post Share on other sites