Two Questions..... - Posted by Chris ~ TX

Posted by John Behle on April 29, 1999 at 22:07:45:

The buyer quotes you a price and you get the difference from that and what you negotiate with the note seller.

Two Questions… - Posted by Chris ~ TX

Posted by Chris ~ TX on April 29, 1999 at 10:25:44:

Hey there everyone,

I’ve got two questions that are, I’m sure, elementary. Let’s say I find a note I can buy for $20,000. I have a buyer who will buy it for $18,000. So I set up a closing.
Now, my first question is, being in the state of Texas, do I have to get any kind of brokering license (assuming I tie it up with an agreement that has my name and/or assigns or assignee), since I would just be assigning my contract to someone else and not actually purchasing it myself? And my second question is, doing this, how would I be assured that I would get the $2,000 (finder’s fee, I guess you could call it) difference between what I agreed with the seller to pay for the note and what the buyer agreed to pay me for the note? Or am I just missing something simple here? Thanks for your help.

Chris ~ TX

Re: Two Questions… - Posted by Dan

Posted by Dan on April 29, 1999 at 18:01:21:

Hopefully you have just transposed your numbers, but I don’t think you want to buy for $20K and sell for $18K. If you do, you’ll be out $2K

Re: Two Questions… - Posted by David Alexander

Posted by David Alexander on April 29, 1999 at 15:45:10:

Don’t assign it, you buy it and he buys it from you at the same closing. You can buy and sell as a principle buyer. If he is an accredited Investor(1,000,000 Net Worth) then I believe you would be able to just assign it. I’m not an attorney, so check for yourself, but this should help.

David Alexander

OOPS!! I sure did lol =) (nt) - Posted by Chris ~ TX

Posted by Chris ~ TX on April 29, 1999 at 18:13:15:

(nt)

Do you have to become licensed as a note broker in Texas? - Posted by Chris ~ TX

Posted by Chris ~ TX on April 29, 1999 at 16:33:48:

Thanks David. =)

I figured on the simultaneous close originally, but then I began wondering if, by doing that, I would be considered working as an agent because I would be buying and then reselling the note immediately using none of my own money, and if so would I have to become licensed as a note broker here in Texas. So I guess that still remains the question, do you have to be licensed as a note broker in Texas?

No license required - Posted by Bud Branstetter

Posted by Bud Branstetter on April 29, 1999 at 16:58:22:

Many of the notebuyers have people find notes as bird dogs. They supply the contract for the people to sign that are selling. They then have them assign that contract. You are not going to get cut out of you finders fee with any reputable buyer. You can try to control it yourself by doing the closing it but without the experience do you have the contacts to do the appraisal, the documents, the title insurance?

Re: No license required - Posted by Chris ~ TX

Posted by Chris ~ TX on April 29, 1999 at 17:28:03:

Hi Bud,

I have a question about this finder’s fee that some of these notebuyers pay. Is it a set fee (say $500, $1000, etc.), or is it whatever I am able to negotiate as the difference between what the notebuyer is willing to pay for the note and what I can obtain it from the seller for? It would seem to me to be a waste of time if it were a set fee.