HELP QUICK

On the invest question. A. If you do; say Yes. If you don't; say Yes, I and my partner do.
Wholesale question. You normally have to sign an agreement with them first before an official P.A. offer gets submitted. This then translates to the P.A. which your agent submits with his/her name on it somewhere. That will follow through the entire closing transaction. That agent was testing you. Certain addenda/addendum's will follow through stating who,what when where and how, plus at the title company it is brought up or noted in a case of delayed/double close. In short that agent will make sure their agency and they are included.

The agent is not paid from the investor in the properties. Rather the agent is paid from the seller of the property.

When a seller agrees to sell a property they agree to pay a listing agent and the selling agent a percentage. You will not pay their fee. The seller does. This makes a bid difference when you are working on transactions with Realtors. They will always get paid and this will help you complete the necessary transactions.

In truth you do not need your own cash to invest. You can use other people money. The Realtor should know this. Proof of Funds serves well with this. I agree with Michael it sounds like they are testing you.

I made an offer on a short sale for their asking price, but they let it expire. I wonder if the realtor even presented it. I thought they had to present any offer. Must not have liked my contract. Now I am back to square 1. Homes in that area are selling below Assessed Value, but higher than their asking price, by far. I'd still like to flip that one, just am not sure how to do it. Any ideas?

what about in the case of assignments? arent i the seller at some point. and how much do agent get? ive heard 3%-8%

In the case of the assignments, I would say it would depend on how you got the lead on that particular house. Did you get this lead from your Realtor, did you find it on your own?

If yes through the Realtor:
1) Do you have a pre-arranged agreement with the Realtor for a set commission?
2) If no agreement, I would probably still give the Realtor 3-4%.

If lead not received through the Realtor:
1) If you get your Realtor involved, you'd probably still want to give them something for their time perhaps that 3-4%
2) If the Realtor is not going to be involved in any way, why give them money?

An assignment is just when your selling the right to buy a property for a certain amount. You own the right, not the property.

When I've bought a house, I want to say that the seller paid 7% commission. Half of that went to the seller's agent, the other half went to the buyer's (my) agent.

Pay them 3%-4% of what? Where is that take coming from?

Thanks to everyone for the help...

Hello!

I apologize for not being as clear as I could have been. Usually when a house is sold, the seller pays the commission for both the buyer's agent and the seller's agent. In my area, I'm pretty sure the total commission that is paid is 7% (it might be 6%) of the purchase price. 3.5% of the purchase price goes to the seller's agent, the other 3.5% goes to the buyer's agent.

I met my agent at our former workplace. We both worked for a big box home improvement center. So back to that 3.5% commission. When I asked him (my agent) roughly how much he gets from my purchase. Of that 3.5% commission, the agent gets half of that (1.75%), and the broker/employer/office space get's that other half. There are some other fees that the agent has to pay the broker, so my agent gets even less than that 1.75%.

So here's an example assuming that my numbers are correct (they could've changed by now):

Purchase price of $80,000 (this would be full retail for many homes in my area)

Commission to seller's agent (and everyone else on his side of the deal)
3.5% of $80,000 = $2800

Commission to buyer's agent (same as seller's agent)
3.5% of $80,000 = $2800 total.
half of that goes to the broker = $1400.
other half goes to agent = $1400.
my agent still has to pay rent on his cubicle to the broker each month.
I think he's told me that he has to pay a per-deal commission in addition to
the other commissions.

So basically what I was getting at (I hope) is that if you find an agent, don't make them work for free too long otherwise they'll go somewhere else.

Thx Gangremond

that is more clear for me now. not that it is any of my business but what does the broker do for the agent? do all agents have a broker?

I don't know all that they do for the agents. I'm sure someone on here knows more about them than I do.

I think that they provide an office and everything else that should come with an office (secretaries, fax machines, etc.). There's probably more that's provided but I don't know.

Hi BigBly, sure cash is always KING an they will fall over backwards to deal with you, first dont let it bother you, just get the deal through any way you can, Id only pay 3% fee as well if there was one to pay, HAPPY INVESTING!!!!!!,Jim

Please prepare yourself for any questions a real estate professional may have for you. Be honest, if you do not know the answer. The more you stumble over answering, the more the professional gets the feeling you don't know what you're doing or talking about, and the quicker they want to end the conversation. You may be very knowledgeable, but a lot of people judge by appearances. You need to get past that first impression so you can show the professional your knowledge and passion for real estate.
(I'm a terrible speaker by the way, so I have to work on that )

RENinja

My offer is still pending, along with 2 others. Realtor says the bank is looking for the highest and best. Do I want to raise mine? What, are we playing poker? I offered asking price, which is 55K less than they paid for it 4 years ago. I see where the patience is required, because I had given up a long time ago. Now I have to get accepted and find an end buyer. It's a nice home, and the realtor says it just might require paint and carpet. It got a rehab 4 years ago.

You don't want to get caught up in a bidding war. You know your maximum offer; stick to it and walk away if the bank wants to play auction. If they can't get the property sold, they will come back to you, when they start feeling the pressure.

RENinja

Thanks for the advice, that was what I was feeling about it, but it is my first deal, and I need it so much it was tempting to up it a little.

The temptation is there, I have not done my first deal, but let me tell, I have FELT it!
But, we have to keep our heads in this business or we won't be in business for long.

RENinja