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Updated almost 7 years ago on . Most recent reply
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How To Trick/Convince The Agency(Modified ''Buy Low, Sell High'')
Hello Everyone,
Although my message is long one, I would still like to kindly ask you to please, whenever you are available, read entire one. Typing everything needed is the only way to express what I am looking for. Even if you may assume in the middle of the message that you are aware what I may be asking, please kindly read everything.
I am new member on your forum. From European Union country. My English language is not my primary one so I apologize if I do any English grammar mistake. Started to learn about Real Estate (RE) business few days ago only - yes, better late than never. Need to admit that I am currently light years away from earning my first cent in this business. Having zero experience from the past except the very few books I have entirely or briefly reviewed. Being interested for Worldwide RE, both houses and apartments in apartment blocks. Definitely not just in one country. So the work may be a bit harder since most (hopefully not all) of discussions are being USA only related. In books I have seen there are many different strategies how could one earn an income in this business. But I haven't seen many, just few different methods, e.g. four or max five. Basically I am looking for strategy method that guaranteed me all three major conditions to happen for my major four requirements, those are:
1. No need of any physical meetings in person or visits. Since I am interested about worldwide RE, it is impossible for me to travel to particular location tens of thousands of kilometers away.
2. Possibility to get rid of particular RE ''bringing me''' one-time financial income (earnings) as soon as possible.
3. No loans of any kind involved so activities such as the following one are definitely NOT possible for me: step 1: get a loan, step 2: buy a RE where i can be as sure as possible i will get people to rent it and pay the monthly rent fees (plus utility bill fees) matching in total at least monthly cost of loan, step 3: before fully paying off the loan, announcing (why? to be fair to them so they can organize themself!) to renting people that i won't rent the RE anymore in around few months from now, step 4: since loan has been fully paid, i could now legally sell the RE. I would never do this because it is against previously mentioned second requirement. This could take years, sometimes even decade, while I want to finalize the deal in few days only. There are also other issues: in our country I heard many situations where people renting the RE, completely destroyed it and either owners or loan takers had to pay on their own to fix it.
4. Possibility to start with zero budget - if not having any money to invest. Exception are few euros for online marketing genious to make some marketing work.
I have been thinking about strategy called Wholesaling. Haven't learned much about it yet but first insight shows that amounts of money that can be earned in this strategy are by far too low.
My question I have is basically completely different from what I have said so far. Why did I type above message then? You are surely asking this yourself. This is just in case if someone will be able to suggest any RE business strategy, different one comparing to my question I am yet to ask, that will for sure meet all my four major requirements I want to have. Your suggestion what else could I look for would be highly appreciated.
So now I am moving to the purpose of this message (my question). I would be interested for Buy Low, Sell High strategy but modified one because original primary one doesn't meet fourth requirement, perhaps not even third. The idea is that I try to find a buyer and sell the RE which is already either online or offline advertised for being on sale. However I would like to sell it for larger price comparing to the price on the advertising listing. Obviously with an ultimate goal and hope that potential buyer DOESN'T SEE the actual original price - the price lower than my price. I have no effect on this. The difference would be my ''pre-tax'' (before tax) profit. I know there is huge discussion to be done with local tax advisor how could i pay taxes from the difference between buying and selling price instead of having to pay entire selling price. In such case, i would have to pay more taxes than the amount of profit is. I imagine it wouldn't be easy not even for local tax advisor to explain this because tax officers or in worst case financial police could quickly come to my door asking me why did i announce the income ( * ) and pay taxes from low amount if incoming bank wire transfer transaction on my bank account shows much much much bigger amount (total selling amount and not the difference amount). But NEITHER this is my question. I don't need your comment here at all (but wouldn't mind it either).
* in our country it is mandatory, according to the law, to manually announce (report) an income, regardless of source, that doesn't come from employer from regular job. Plus provide the documentation showing and proving legal source of money.
So what is really my question for you? Finally, it is the following one: I am asking you for either particular book to suggest me or whoever else to get in touch with. Every single potential buyer of RE, either house or apartment, will surely want to see in person the property at least twice. Once during the day, once during the night. Even if i just started to learn this business, few days ago actually, I am 100% sure there is no potential buyer on the world, not even a single person guaranteed, who would want to buy based on online photos only. For sure not. But the problem is that I don't understand how could I ''jump'' into two-way dialogue between potential buyer traveling to see the RE and an agent, without my physical presence, and act as a middle-man to gain profit from the difference? This is my question. I could arrange the meetings remotely but the main problem is that agents will for sure answer to either me or potential buyer with feedbacks like the following quoted ones are (i repeat again: those are assumed verbal feedbacks the RE agent or broker could say to me or to potential buyer - they would prevent the possibility of me coming in the middle of them):
"I am not legally allowed to try to sell the RE for different price comparing to the price I clearly stated on our agency's website"
"There is no way I could mention your name to the potential buyer as owner of the RE if you are not. On RE ownership documentation is clearly stated who the owner is and you are not."
"I cannot lie to potential buyer and tell him that I spoke with him either via emails or phone calls if I didn't."
"This is not my email address. I cannot tell him to send a message with any questions or decision to email address I don't have the access to."
"There is no way that I trust you to instruct the potential buyer to send the payment for entire RE to your bank account instead of business bank account of our agency. Even if you guarantee that major % will be forwarded to us and you keep the difference for your profit only, we are not doing this."
"Even if you want to act as middle man and even if your intention may be legal / legitimate and even if this wouldn't corrupt our business, you still need to be with us in person for paperwork purpose and physical signature because we don't accept online electronic signatures."
"I am not interested to meet with potential buyer on your defined date and time and neither I am interested that i have you as a messenger to forward my requested meeting time."
"I can do entire deal with potential buyer, if he will be interested, on my own. There is absolutelly no reason why you, who is located on different part of earth, would need to be anyhow involved. Neither me nor our agency don't need you here but potential buyer only."
"Even if I agreed that potential buyer sends payment to your bank account, I still need to be sure that the actual real owner of the RE gets major amount of that money. How could I send the money to the real owner if it is on your bank account instead of our agency's one?"
and so on and so on. I could go on with the comments for days - the reasons why I cannot imagine how could I legally act as a middle man between potential buyer and agent to earn the profit from the difference between my requested price and actual price hoping that potential buyer never sees. All such feedbacks would quickly corrupt any hope of my RE business career. However the most werd thing for me, as total beginner, is that people are still doing this but I don't know how could be thiis possible? All samples (many more could be listed) of agent's feedback will surely instantly corrupt any hopes of me earning as a middle man, even coming between both sides (agent, potential buyer) is, based on samples of quoted text above, completely impossible. No agency would allow anything like that. For sure not.
SO FINALLY MY QUESTION For your BiggerPockets community is: Could anyone please provide any resources (books) or who to contact to help me get started with what I described? Are there any books that describe in detail how to become the middle man and set up some rules (e.g. the selling price) even if in person dialogue between both persons (potential buyer, agent) are between them only? I cannot have any effect on their conversation. Particularly not when they are both present on the meeting. The reason I asked for resources where could I learn how to position myself between both persons is because most likely such activity needs a lot of knowledge, a lot to be said (tens or even 100+ pages in the book) and I doubt i can get needed information within reply.
Your reply would be highly appreciated, Thank you very much in advance!
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The problem is
1. You wrote a novel and no one is going to take the time to read without any cliff note version
2. Most people don’t even know what you are actually talking about.. it sounds like you want to be the middle man between a buyer and a seller which is what a realtor does