Posted by JPiper on May 16, 2000 at 20:23:23:
You’re going to have to create cash in the deal…or create a note.
As an example…you lease/option a property for 0 down with the help of a realtor. Now you find a tenant buyer who has $5K in option consideration. Perhaps your deal with the realtor is to pay $2K upfront for locating the property…against a full commission on the property IF the option is exercised. Or, you could create a note which pays the realtor a portion of your monthly income from the property.
One thing though that you will need to take into consideration. Some agents have brokers with whom they split commission. You will be unlikely to find a broker who will take his split in the form of a note. So even if the realtor is willing to carry, you’ll still need to find a way to put cash in the broker’s hands.
I’ve seen a few brokers who would carry notes periodically IF they trusted you. Back when I had a brokers license I did it periodically myself. BUT, I wouldn’t expect this to be routine, and if I were you, I’d try to generate cash in the deal to pay the commission with, or at least part of the commission. You should be able to do this from your buyer’s upfront money.
Frankly, if you can’t put money in his pocket, what does he need you for?