Posted by Joe, Detroit on February 21, 2002 at 11:26:16:
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Flipping Houses w/Realtors??? - Posted by Trisha(NC)
Posted by Trisha(NC) on February 21, 2002 at 05:59:59:
Can It be done, and is it profitable?I have a line up on several houses that are fixer-uppers and I really want to get in on it. But, I’m wondering if flipping contracts with a realtor will get me my maximum profit or any profit for that matter, without the realtor feeling apprehensive. I have no money so I have buyers lined up. I beleive that the seller pays the realtors commission but, I want to be sure. And also, how do I get around the earnest money issue? The last realtor I spoke with told me that I had to have earnest money up for each house I was interested in. But with the what I have been told is that, I can take one earnest money deposit and apply it to the first offer accepted. I was told by the realtor at the time that that was not leagal. Advice please guys…Thanks
Trisha
Letter of Intent, perhaps? - Posted by Joe, Detroit
Posted by Joe, Detroit on February 21, 2002 at 11:18:42:
Although I’m more a Bronchick/Kevin Myers student, Carelton Sheets had a good idea. He issues a Letter of Intent to Purchase with a photocopy of the check that he’d hand over, IF the offer explained in the Letter is accepted. After that, he’d send the actual offer with the real earnest money attached. His reasoning to brokers (and others) is that he makes 5-6 offers on different properties at a time, and that he’d wasn’t going to cut checks for all of them! Whether this works outside of Carleton’s world remains to be seen, but ya never know. Sounds good. I’m going to try that sometime.
Re: Flipping Houses w/Realtors??? - Posted by DaveH
Posted by DaveH on February 21, 2002 at 08:58:34:
I’m not sure, since i’m also a newbie…but since you said you “don’t have no money [just like me] so I have buyers lined up.” I assuming that you have some buyers lined up. Question, are the buyers, qualified. If they are, why not ask the realtor if he/she would take a primissory note subject to the closing of the deal for the earnest money, commission etc. Like it was said, right here on cre “this is creative real easte everything is negotiable.” Please check into this possibility some more. All in all, it’s worth a try. Make sure, to give yourself enough time to pay the earnest money, etc. back. Also, make sure you factor, in the cost of paying the earnest money etc. into your expenses. Again, please check into this some more.
DaveH
P.S. I got this information from reading the posts, and archives right here on cre. I’m now beginning to put everything together and it’s only be about two weeks since I came across this website that has this amount of detailed information which is what I was looking for.