Re: Brokers–Impediment to No Money Down? - Posted by Gary
Posted by Gary on November 13, 1998 at 22:12:04:
Someone suggested that you ask the broker to receive their commission over a period of time. Couple of things that you need to be awaire of. Most brokers have their listings sold by their sales people (licensed real estate agents). A typical agent usually splits his or her commission with their broker (50/50, 60/40)so they would most likely have to give something to their broker at the completion of a sale. I happen to be a REALTOR with RE/MAX. Most RE/MAX agents receive 100% commission at closing. I have to give 5% of my commission to my broker, no big deal to me. If I had a property listed that you would want to purchase no money down and all was fine with the seller, I would have you pay me my commission some what like this:
This is only an example
$50,000 sale price of home
6% commission = $3,000
15% simple interest over 18 month period
$3,000 * 15% = $450
$3,000 + $450 = $3,450
$3,450 / 18 months = $191.67 per month due in my office on or before the first of each month
I don’t do discounts or take less on the interest but, if you make those monthly payments on time, lets do some more business.
You have to make it worth it for the broker and most brokers will not take installments on the commission. Their in the business to make money to support their families and their business like every one else that works for a living and operates a business and want the money up front. For them may have to take a cash advance on your credit card.
If you have bad credit, I wouldn’t do it either.