All Forum Posts by: Aaron Rickett

@Jeff Valentino

I agree that just being courteous goes a long way to making a good relationship. Thanks for answering all my questions.

@Bill Gulley

I agree that disclosure is the key to making the arrangement work, while being above board. 

I think the only way that the buyer's agent would be willing to do this is if he/she is the investor's spouse, or the investor. In my case since I have my license, I would be doing all the extra work myself, but would be compensated by getting better deals, and perhaps by developing a relationship with a listing agents so they would let me know about new distressed properties about to be listed, properties that are about to have a price drop, and perhaps tips about how motivated the seller is. Thanks for your response.

@Jeff Valentino

 I agree that disclosure is key. I think the affidavit submitted to the bank along with the offer is a great way to do this. Do you generally work with investors? If so what kinds of things do you wish investors would do to make your life easier? Thanks for your response!

@Jesse T.

I agree that the "bonus" is the most questionable part of this suggestion. How do you go about developing a good relationship with the listing agent or others with whom you associate? Thanks for your response.

@Gerard DuMelle

I agree that disclosure is key. I also really like the idea of checking with the state's real estate commission and asking if the plan is ok. Thank you for your response!

@Michael Hayworth

Lol. Thanks for your response. 

@Lisa KohlThanks for your reply! It sounds like from what your saying there is not much flexibility in which agent is responsible for all of the tasks that need to be done in order to facilitate the transaction.

@Karl Krentzel I agree that if you need to ask if it is unethical, it usually is. However I still think that there must be some way to develop a good relationship with a listing agent or broker without doing something unethical. What kinds of things do you think investors could do to make your life easier?

I've been reading a book about real estate investing and the author who shall remain nameless makes a brilliant recommendation when buying REO properties. However I am unsure whether the recommendations are ethical or not. Here is what is recommended:

The author is a real estate agent and makes a deal with the listing agent and offers to:

- Take care of letting client into the house for inspections

- Get utilities turned on for inspections

- Complete all paper work

- Work with the title company on the title search

- Work with the closing attorney on scheduling the closing

- No need for you to show up to the closing

- I'll return your lockbox, sign and commission check to you at your office immediately after closing

- I'll also give you my half of the commission as a bonus, so you make twice as much on this deal.

The only thing you need to do is get the bank to accept my offer.

I am concerned because with this much incentive, is the listing agent really representing the bank? Is the listing agent commited to giving the best advice to the bank? How would this scenario hold up in court?

I am interested in hearing what investors, buyers agents and listing agents, and attorneys have to say about these tactics.

If the above is not ethical, what line can you draw where it would be ethical? All of the above except the extra commission? All of the above except don't explicitly say that you want him/her to get the bank to accept the offer? What other arrangements can you make to form a great relationship with a listing agent while remaining ethical?

For the record, I think the book this recommendation came from is fantastic. I am just unsure about this one part of the book.

I've been reading a book about real estate investing and the author who shall remain nameless makes a brilliant recommendation when buying REO properties. However I am unsure whether the recommendations are ethical or not. Here is what is recommended:

The author is a real estate agent and makes a deal with the listing agent and offers to:

- Take care of letting client into the house for inspections 

- Get utilities turned on for inspections

- Complete all paper work

- Work with the title company on the title search

- Work with the closing attorney on scheduling the closing

- No need for you to show up to the closing

- I'll return your lockbox, sign and commission check to you at your office immediately after closing

- I'll also give you my half of the commission as a bonus, so you make twice as much on this deal.

The only thing you need to do is get the bank to accept my offer.

I am concerned because with this much incentive, is the listing agent really representing the bank? Is the listing agent commited to giving the best advice to the bank? How would this scenario hold up in court?

I am interested in hearing what investors, buyers agents and listing agents, and attorneys have to say about this tactic. 

If the above is not ethical, what line can you draw where it would be ethical? All of the above except the extra commission? All of the above except don't explicitly say that you want him/her to get the bank to accept the offer? What other arrangements can you make to form a great relationship with a listing agent while remaining ethical?

For the record, I think the book this recommendation came from is fantastic. I am just unsure about this one part of the book.

Hi Amit,

While I don't invest in Wylie, I know a few people who focus their investing efforts in Wylie and Rowlett. My dad owns a couple properties in Rowlett, and his managment company who he highly recommends, Omnikey, manages and invests heavily in the area. Good luck!