I do not see how you would be accused of practicing
real estate without a license. The cooperative
concept applies when you have a seller that is not
willing to let you have total control. Its just like
a regular assignment except that prior to who you
assign the contract to that you have with the seller,
the seller has the right to approve them first, before
you assign the contract. This gives the seller
assurance of who they have in their property. Once
you have assigned the contract, then you’re out of
the deal and free of liability. Its pretty simple.
For those of you assigning L/Os, do you tell the seller up front, as in your first conversation, that you will be assigning the contract to a qualified T/B? Or do you wait until most of the particulars are hammered out and then tell them? I’ve just finished Legrand’s course and started calling FISBOs and I find that a lot of sellers are intrigued, but they don’t like the idea of a stranger (my assignee) coming into their home after they sign the deal. I cover all the objection handeling stuff about finding good people etc., but it’s still a radical idea to most. Just wondering if anyone has an effective method of overcoming this objection…
Thanks!!
In such circumstances, try doing a cooperative
assignment. This is an assignment where prior to you
assigning it to your tenant/buyer the seller approves
your tenant/buyer. Its a great strategy and it works.
Re: On dealling with sellers,L/Os and assigning… - Posted by Dave T
Posted by Dave T on February 28, 1999 at 23:47:09:
Don’t describe your complete investment strategy to the seller. Instead say that you will be renting the property to a suitable tenant after your deal closes. This is truthful and gives the seller easily understood information about your immediate intentions for the property.
Ask the seller if he/she would mind if you showed the property to prospective tenants prior to settlement. Of course reassure the seller that you will always call first, and you won’t show the property unless the seller is home.
Re: On dealling with sellers,L/Os and assigning… - Posted by Dave T
Posted by Dave T on February 28, 1999 at 23:47:09:
Don’t describe your complete investment strategy to the seller. Instead say that you will be renting the property to a suitable tenant after your deal closes. This is truthful and gives the seller easily understood information about your immediate intentions for the property.
Ask the seller if he/she would mind if you showed the property to prospective tenants prior to settlement. Of course reassure the seller that you will always call first, and you won’t show the property unless the seller is home.
Hi Jay,
I re-read my post and it comes off a little brusque. Sorry, I genuinely am interested in the information. I guess I’m just a little edgy today- too much coffee?
Jay, I thought I understood this “cooperative” concept but your post has left me confused once again. I thought the way you do this “cooperative” thing was to give your seller a how-to packet of forms and make yourself available on a consulting basis. THEY do ALL the legwork. Now you’re implying that you’re even bringing them the assignee for their approval. Is one in considerable jeopardy of being accused of practising real estate without a license in this instance? Do you just figure you’ll never be caught, or is the fact that you signed a contract as a principal enough to insulate you from this charge? DO YOU sign a contract as a principal in the “cooperative” scenerio?