Wholesaling Bank Owned Properties

[Prince Conley]

I came across a good list of banked owned properties with majority of them having tenants already in place. The bank is selling however I came across the properties through a broker who represents the bank. I'm looking to possibly send the properties to a few investors but I'm still unsure of how I can make $$. Do I just send each property separate after I negotiate my fee or should it be 3% of the sale price. Also should I have the buyer sign a finders fee agreement? I'm thinking yes but I'm still new and figuring things out as I go.

[Will Barnard]

So basically the seller of these properties already has a list agent responsible for the disposition of these assets and you want to come in and collect a fee on top of that paid for by the buyer, correct? Are you licensed! If not, then you need to become a principle in the transaction which would require you to make an offer on the properties to the list agent, have an accepted contract, then find a buyer for these and close. To do that, you will likely not be able to assign them because they are REO I deals and likely prohibited via the purchase contract verbiage, so you must lock them up in the name of a new entity or a trust and then sell the entity or the beneficial interest in the trust. The other option is to close on the deal and then in a separate closing, close with yr buyer for the higher price with you keeping the difference.

[Wendell De Guzman]

@Will Barnard is correct. Basically what he is saying is YOU NEED TO WHOLESALE the deal. You cannot be an unlicensed real estate agent. You have to actually buy the house as a PRINCIPAL in the transaction.

[Prince Conley]

Thanks for the insight fellas. Quick question what if I just charge a fee to someone looking to cash buy the properties. I simply don't have the experience to pull what you're talking about off yet. I guess something like a bird dog fee. The package is pretty big and I have an offer of 1% commission for the entire package. Is that good? I honestly want 3%

[Jerry W.]

You are not a licensed real estate agent. you are getting in pretty murky waters by not having a license and doing the deal the way you are doing it. You are not selling an assignment of a contract to buy, you appear to be selling real estate without a license.

[Prince Conley]

Got it. Thanks everyone for info

[Will Barnard]

Jerry is correct. You would be acting as an agent without a license and could get into trouble. "Wanting 3%", there are many things we want, but you must "earn" what you get and to get 3%, or even 1%, you need to add value. That could be becoming the principle in the transaction and negotiating a good deal on both ends or it could mean that you are an agent and bring value that way to earn the commission. Anything short of that, you need to step away.

I highly recommend you educate yourself in this process so that you no longer feel this way: "I simply don't have the experience to pull what you're talking about off yet" - It is actually not that complicated to pull this off.

[Prince Conley]

@Will Barnard Youre right. After doing a bit of research its definitely quite doable and not as complicated as I thought. Im looking to partner with another investor on this deal and were meeting next week. thanks for the advice