Anyone purchased Subject 2 through MLS? - Posted by LK

Real Estate Investing
#1

Posted by LK on May 19, 2007 at 23:18:51:

You are right. When I do define it, they think I’m describing something illegal or at the least unethical. Not just buying subject to, but with any creative structuring. I think the problem is most RE agents/brokers are too concerned with risking their professional obligation/liability to entertain anything that they don’t completely understand or that doesn’t fit their conventional mold.

I think they are so focused on what the house is worth plus their commission, that they can’t see anything beyond that.

I don’t mean to stereotype them all, because there are exceptions.

#2

Anyone purchased Subject 2 through MLS? - Posted by LK

Posted by LK on May 17, 2007 at 08:30:37:

I know that everything is negotiable and anything is possible but does anyone have experience with the typical RE agent/broker allowing a subject 2 deal provided everyone gets paid?

#3

Re: Yes - Posted by Katheryn

Posted by Katheryn on May 18, 2007 at 21:43:45:

LK, I have found that looking at the listings that have been on MLS the longest (245+ days) are the best for sub2’s. The homeowner is desperate for any offer and I ask the RE agent to see about my offer to “take over payments”. Of course they laugh, but then I politely tell them I would like to submit the offer & expect them to still get a commission. Then I follow it up with a letter to the owner of the property that I am interested in their home by taking over payments. The owner calls me ASAP, is suprised that the RE agent never submitted my offer to them (no suprise). The seller then asks to be let out of the long contract since there is no interest and the RE agent easily complies. I then go for my sub 2 offer and have a good ratio of getting it accepted! So as long as you are honest with the RE agent, you then should not feel guilty about notifing the owner of your intentions. I have not found an RE agent yet to submit my offer and one has even suggested that I am trying to “steal someones property” by not going the right way of buying. So give it a shot and post back what response you got.

#4

RE agents don’t get sub-to - Posted by John Merchant

Posted by John Merchant on May 18, 2007 at 10:24:55:

In my experience the typical RE agent has little interest in anything except his/her next commission so I sure wouldn’t plan on getting any great amount of assistance from a REA.

Further (and closer to the point maybe), I’d bet you couldn’t find 1 in 100 REAs who could even define “subject to”.

Can’t tell you how many RE deals I’ve seen go nowhere,where a “sub to” would have solved the owner’s problems but his listing agent couldn’t even begin to comprehend what was at stake or how the ST would have worked for the S.

#5

Re: Yes - Posted by LK

Posted by LK on May 19, 2007 at 23:35:35:

That is interesting. As I said below, most agents just can’t see beyond anything that does not fit their conventional mold. Anything other thatn that must be illegal or unethical. That way they con’t have to worry about their board fining them or pulling their license.

So then they list a property for more than it is worth, it stays on the market for three months and then its foreclosed on. Somehow this is a better service than an investor being allowed to “steal” the property and have a happy seller go on their way.

When you say that you have not had an agent submit an offer…Are they your offers using your contract? If the agent is actually “writing up” the offer using realtor docs, aren’t they obligated to submit the offer?

#6

Re: Yes - Posted by Kristine-CA

Posted by Kristine-CA on May 19, 2007 at 21:34:47:

Katheryn: thank you for your post. If you were to get an agent to
submit your sub2 offer to the seller, how do you explain to them how
and when they will get paid? Are you planning to pay them upon
getting the deed? Upon re-sale or re-finance?

I have lots of frustrations with agents and their understanding (or lack
of understanding) of many areas of real estate. But I can see where
they are coming from if we make an offer that says we will take over
payments; they’re just thinking how and when does closing take place
and where’s my check? Kristine