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Non-exclusive agreement with seller. Exclusive agreement with agent?


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#1 masterkey

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Posted 09 February 2016 - 12:48 AM

Hey Michael and the gang! How are you all doing?
 
First time I'm posting here. Maybe you guys can help.
 
I'm a bit confused.
 
I heard a real estate trainer say that when working with a listing or leasing agent to help you find a tenant/buyer (for a home that you have under a NON-exclusive lease option agreement with the seller), you have to sign an EXCLUSIVE agreement with the agent.
 
I really don't understand that. I mean doesn't that put me, the investor, in a very risky position?
 
Example, what if the seller finds a buyer first? That would cancel the non-exclusive agreement I have with them, but I would still be on the hook with the agent right? since I have an exclusive agreement with them. Would I owe the agent money at that point?
 
Or is this simply a matter of entering into a non-exclusive agreement with the agent? 
 
Lastly, is an agreement even needed with the agent? I don't need them to list the property. I just need them to put some signs up and some ads online, show the homes and handle the paperwork.
 
Anyways, any clarification on this would be greatly appreciated.


#2 MichaelC

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Posted 09 February 2016 - 11:58 AM

Hello, Masterkey, and welcome to The Naked Investor!

I don't know who this real estate "trainer" is, but he is wrong.  Why do you have to sign an exclusive agreement with the Agent?  In fact, I suspect many Agents wouldn't agree to work with you to find a tenant/buyer since you are not the owner of record.  In fact, the Agent would probably tell you that what you are doing is brokering real estate without a license and would threaten to report you.

There is money in telling new investors how difficult this business is,  (so the "genius" can sell you an expensive get-rich-quick program), but if you are doing an assignment you will be hard pressed to find an Agent willing to work with you for the reason I stated above.  Keep things simple.  Find the t/b yourself and keep the money you earned where it belongs:  in your pocket. 



#3 masterkey

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Posted 13 February 2016 - 04:14 AM

Thanks for responding Michael.
 
Sure, I understand that. But what if I'm in Canada and trying to do this in the US for example?
 
Who would be the best person to hire to be your "boots on the ground" when doing this remotely?
 
Agents, especially Leasing Agents seem to be the best option as opposed to just hiring anyone else since they already know how to handle the whole process of getting a property filled with a tenant and thus requires less hand holding, they have a license which basically covers me regarding the whole brokering without a license issue, and if they try to cheat me in any way, they could lose their license.
 
The downside as you mentioned, is that I'll probably have to deal with a lot of negative energy until I find that one agent who understands Lease Option Assignments, and who is willing to work with me.
 
So when doing this remotely, who do you prefer to hire or partner up with to help you with all the legwork?
 
Thanks again!


#4 MichaelC

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Posted 13 February 2016 - 06:42 AM

You're right.  In some instances we have no choice but to work with an Agent, and that isn't necessarily a negative.  The key, as you already alluded to, is to find one who is an Agent/Investor if you can.  Or at least an Agent who is investor friendly.  One who understands what you do and how you do it.  He or she becomes an invaluable part of your network and is well worth any fees/commissions you pay.



#5 masterkey

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Posted 13 February 2016 - 03:29 PM

Yep, makes a lot of sense. Thanks!

 

When is your new e-book going to be available by the way?



#6 MichaelC

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Posted 13 February 2016 - 05:37 PM

When is your new e-book going to be available by the way?

I'm aiming for early summer, perhaps sometime in May.  But truth be told that is a rough estimate based on the slow pace I have going on it presently.  Seems there is always something that gets in the way of sitting down for a few hours and hammering away at the ol' keyboard.  :unsure:



#7 masterkey

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Posted 14 February 2016 - 03:28 PM

haha, ok great! Thanks.






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