Found a deal in another state - Posted by Luke ID

Real Estate Investing
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Posted by TC on November 23, 2000 at 21:44:52:

nt

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Found a deal in another state - Posted by Luke ID

Posted by Luke ID on November 22, 2000 at 17:44:54:

I found what seems like a good deal in Des Moines Iowa on two houses, and I’m wondering if I could contact a local investor, and how much to expect as a finder’s fee. Any suggestions?

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Re: Found a deal in another state - Posted by Robert (ID)

Posted by Robert (ID) on November 26, 2000 at 13:37:46:

Luke,

I noticed that you are listed as Luke ID. Are you from Idaho? I could use someone to talk to.
If you are, please e-mail me at rji1956@hotmail.com

Thanks,

Robert

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Re: I would suggest - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on November 23, 2000 at 15:43:24:

getting an option on the house that you have located and then offering the Option for sale to an investor.

The way you stated your comment would leave you open to possibly violation of real estate brokerage laws in both states.

When you offer to sell “for another” and “for a fee” a property that you do not own you are possibly acting as a real estate broker.

When you offer to sell an “option” that you do own you are just selling something that you own, and this usually by-passes the real estate licensing laws.

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Re: I would suggest - Posted by Luke ID

Posted by Luke ID on November 23, 2000 at 19:56:14:

Thanks for the advice. Is there some place to get the right forms and such? Any advice on approaching the owner? And where would you suggest looking for someone to buy the option from me?

Thanks

Luke

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Re: I would suggest - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on November 23, 2000 at 20:41:18:

Luke,

you might want to take a look at legalwiz.com I think there may be a sample option form there.

As for marketing an option you can market that just like any other house or piece of real estate. Somewhere along the way you need to let the buyer know that you are selling an option to buy the property, and not the property itself.

This may be more desirable to the buyer, as he can buy your option now and get financing to buy the house later on (during the life of the option). You could take time payments for your option. an example would be if you purchased your option for lets say $1,000 You could sell it for $5,000 payable @ $1,000 per month for 5 months. This would be an assignment of the option,a flip of the option, if you desire. No credit check or other qualifying problems, no actual purchase, and no personal liability.

If you buy an option for $1,000 today and sell it tomorrow for $5,000 (with $1,000 down and the balance of the money on a note) how much would you have invested in this income stream?