All Forum Posts by: Michael Baradell

@Al Cordova did you discuss Lease option with her? Even though she may have little or no equity to sell traditionally, a lease option may still work for her. She should be able to get a slightly higher Sales price than a traditional buyer would pay. Of course, this is dependent on the home appraising for that price a year or two from now. She wouldn't have to worry about paying a Realtors commission and she could negotiate that the buyer pay all closing costs. Just a thought. 

@Al Cordova sounds to me that she may have very little equity if any do to the fact she just purchased it. This could be the reason she is coming to you. A lease option may be her best bet to get out of the property and move on. Good Luck!!

@Brian Gibbons happened upon a few of your Lease option YouTube videos today, ironically. Good stuff!! How much would you charge just for me to view some of your contracts? More specifically your option contract and the CYA forms you speak of. I would like to have some samples to present to my attorney so she can have an outline of what I'm looking for and make the appropriate changes to cater to my state.

@Al Cordova What makes this property a deal? What are you looking to do with it? 

Hey BP!! 

I am in the early stages of setting up a lease option on a property that I own. Here is my question In regards to the option fee: I will be using an escrow company to set up and manage the lease option for the duration of the term.  The option fee will be made payable to the escrow company to protect the buyer. Question: Will I receive the option fee when the buyer/tenant moves in? Or, will the option fee be held in escrow until the term is complete? Second question: My understanding is that the option fee will go towards the down payment instead of taking it off of the purchase price. Is one better than the other? 

Hey BP, 

So I have an investment property that I will most likely keep as a rental. I completely renovated the property and have created about 25% equity in the property. I'm looking for a way to pull out some of that cash. Obviously, most ( if not all ) lenders and banks will not allow a cash out refinance on an investment property above 75% maybe up to 80%. Does anyone have any ideas on how I can accomplish this? 

@Andrew Cordle awesome thread you have started here!! Very helpful!!

@Mark Breaux you do not have to pay for an inspection in order to put a property under contract. I think what your realtor is trying to say is that, if you do decide to terminate the contract during your due diligence period, you may have to show the seller an inspection report of your findings and the reason you want to cancel. Now, this is not required either, but I think that may be what she is trying to say.

@Robert Leonard I think what I have explained is what Ian is talking about. He wants to "broker " the deal between the seller and buyer, in other words wholesale the property. He wants to receive a commission or fee for setting up the transaction. If this is the case, then it must go through his broker. This matter is not subjective to where the broker can decide whether or not the agent " made a good faith effort to list the property". If this were the case, then there would be deals being done between agents "under the table " everyday! The only way, in my opinion,  to properly orchestrate a wholesale as an agent is to list, agree to commission or fee, and then have the contract assignable. I don't know of any other way it would be possible. I would love to learn about it if it does exist!! 

@Robert Leonard @Ian Richardson simply disclosing you are an agent does not negate the fact that you have an agreement with your brokerage or the LREC or NOMAR for that matter. Being a fairly new agent, it was clear to me during preparing for the state exam that ANY transaction that you broker that has a commission or fee attached MUST be paid to your broker first and then paid to the agent. I may be incorrect on this, but that is how it was explained to me. There are some "grey" areas but I would try and keep it black and white if possible. 

Also, regarding this scenario, what is the difference between a wholesale fee or listing commission? If she won't work with an agent because she doesn't want to pay a commission, why would she pay a wholesale fee? I think she may not fully understand what you are trying to accomplish. 

@Priscilla Z.  I list my own properties and don't pay out any commissions to my self. Since I am not profiting from the deal as the agent, no monies need to go through my brokerage, there is only commission paid to selling broker. In this scenario however, there is a commission/ fee being paid to you. That must go through the broker. Even if you purchase a home for your self, that commission will need to go through the broker as well. Some brokers will give freebies depending on how often you purchase/ sell your own properties. 

@Ian Richardson being a licensed Realtor, it is against LREC for you to receive any type of commission / fee without it going through your broker first. I am licensed and an investor as well. I have not attempted to whole sale but have wondered what the best method would be. The only way I can see that you can wholesale and meet all LREC requirements is to do a one day listing along with a commission agreement and have your friend come in as the buyer. As long as the contract is assignable then this should work. Thoughts??