How should one go about presenting L/O to real estate agents... - Posted by Tuan Pham

Real Estate Investing
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Posted by Tuan Pham on May 30, 2000 at 18:39:30:

Hi Jim,
Wow, my brush w/greatness. The great JPiper answering my post. Thanks for the input. You’re right, most agents don’t want to wait for their commission.

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How should one go about presenting L/O to real estate agents… - Posted by Tuan Pham

Posted by Tuan Pham on May 29, 2000 at 24:12:05:

I have 2 parts. 1st part: Has anyone worked w/real estate agents on L/O deals…how would one structure it so that the agents are satisfied getting their commission over time…should I present it like insurance agents getting renewals. Or is this a waste of time. 2nd part: How should I word my ad if I wanted to rent to own in the real estate section. What section should I place it in. Should I say in my ad what I can afford. Has anyone done this before.

Thanks in advance,

Tuan

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Re: How should one go about presenting L/O to real estate agents… - Posted by JPiper

Posted by JPiper on May 29, 2000 at 12:02:23:

Just a quick comment on the agent aspect of your question. I would think long and hard about the use of agents in lease/option deals before you embark down this road.

You could try to structure by paying a commission on the lease portion of the deal, with a sales commission upon exercise of the option…but you’re going to lose the attention of alot of agents if you go this way.

Or, you could try to pay some cash upfront, with the balance due upon exercise…but this is going to severly detract from one of the sources for profit for you…the upfront cash.

In general, getting agents to carry commissions is not going to work in today’s climate. Not that some agents might not be willing under certain circumstances…but once you have found an agent that is willing, now you have to contend with the agents broker, who is probably NOT going to be willing to carry his/her part of the commission. I’ve had a couple of agents carry part of their commission in the past…but it’s few and far between.

For lease/options I would say that you’re better off trying to create your own deals. Having an agent in the middle is going to create a drag on the profit, and is going to present a problem in dealing with the seller.

JPiper