Hartford, WI · Member since 2016 · 162 posts · 50 votes
Hello BP!
I may have found my first potential rental property. Being new and never having done anything like this before, there is a lot I don't know. So the question of this post is how do I buy an off market deal? I will be using conventional mortgage, possibly an FHA loan, but since I am not going through a real estate agent, who are the people that I need to get involved to make this happen?
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
8y
@Danielle Golan the seller doesn't pay for a buyers broker if the market is an off market deal. The normal agreement between agents is; If I have a listed property and you bring the buyer I will give you 1/2 of the commission. However if there is no listing agent there is no agent to pay the buyers 1/2. It has to come out of the buyers pocket.
@Jared Baker as Chris martin said the most important is an attorney and a title company. I am not a big fan of agents and rarely use one, however they can provide resources you have not yet developed. Some examples would be; a contract, inspectors, home warranty companies, and contractors. If you are brand new and don't know where to turn or the next steps,hiring a brokers agent maybe worthwhile.
I may have found my first potential rental property. Being new and never having done anything like this before, there is a lot I don't know. So the question of this post is how do I buy an off market deal? I will be using conventional mortgage, possibly an FHA loan, but since I am not going through a real estate agent, who are the people that I need to get involved to make this happen?
Thanks!
You should be able to talk to a real estate attorney or tile company and they will be able to help you close. You don't need an agent.
Hartford, WI · Member since 2016 · 162 posts · 50 votes
8y
@Chris Martin Is finding a real estate attorney or title company as easy as doing a google search? What would be the order of events that needs to take place? Would I give a verbal offer to the property owner before one of the above is involved? Or do they need to be involved in making an offer?
I am also new to this, and I was wondering why a buyer would want to work a deal WITHOUT an agent. From what I understand, the seller pays the agent fees and in most times it will be the same amount whether the buyer has an agent or not.
Hope this isn't piggybacking too much on the thread, but maybe it will help @Chris Martin too.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
8y
@Danielle Golan the seller doesn't pay for a buyers broker if the market is an off market deal. The normal agreement between agents is; If I have a listed property and you bring the buyer I will give you 1/2 of the commission. However if there is no listing agent there is no agent to pay the buyers 1/2. It has to come out of the buyers pocket.
@Jared Baker as Chris martin said the most important is an attorney and a title company. I am not a big fan of agents and rarely use one, however they can provide resources you have not yet developed. Some examples would be; a contract, inspectors, home warranty companies, and contractors. If you are brand new and don't know where to turn or the next steps,hiring a brokers agent maybe worthwhile.
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
8y
As @Ned Carey said... Like Ned, I don't use a broker if I found a deal. But we've done this before...
The resource you will have is the paralegal at the attorney's office. She's (assuming female here) likely done hundreds of closings and when you ask nicely will help you along.
Real Estate Broker · Lexington, KY · Member since 2017 · 131 posts · 129 votes
8y
The first deal I bought was an off-market deal. Fortunately enough for me, I was actually talking with a realtor and he helped me through the process although he didnt want any commission since I found and negotiated the deal myself. It was a fairly straightforward process and the sellers were also investors which made things pretty easy. However, working with a realtor is great and I definitely recommend that. I’ve learned a TON from my realtor as he is an investor as well. It’s worth it to have him look over my numbers and also provide valuable insight when I get emotionally involved.
Hartford, WI · Member since 2016 · 162 posts · 50 votes
8y
So if I found a local Real Estate agent to help me in the process, I would have the pay the agent to help me buy the property rather than the price being higher to account for a selling agents commission? Will any local RE agent help through the buying process or are there certain things they can't help with since it is not listed?