All Forum Posts by: Brian P.

I have to take issue with the net listing remark. Yes there were abuses but not very many but a few cases caused some states to make them illegal. All that was needed to continue on screwing those people of the type that were victims was an option.

The real reason for the non-use by agents was the fact a seller wanted a price to him of say $100k so an agent thinking well I think I can sell it for $105 or more so OK I'll take the listing as a net listing. What usually happened was a buyer would be taking his first shot and would offer $100k on the property which was on the mls at $107k  and the agent was required to present it and the seller would of course accept it and the agent thus had a net amount of zero dollars due him and still had to handle the closing. Didn't take long for brokers to toss the net listing forms into the garbage.

This was the reason there wasn't really any outcry and out rage at the net listing being made illegal, it was more like great, now on those occasions when a seller demanded a net listing we could just say we would do that for you but we can't because this state made it illegal (thank god).

You say it is in foreclosure, so it is not a REO. Are they currently trying for a short sale. Call the agent and find out the exact status and ask him or her what they are trying to accomplish, getting a sale before the trustee or sheriffs sale? getting a short sale, or an owner trying to sell before he has to file for bankruptcy.

Your call is to get info and unless the agent is brain dead or hoping to swing the deal to a friend he will be glad to get your call and try and find an out for his client. He or she doesn't make a dime if it is foreclosed on unless they are the one who is going to get the REO business. I've given a lot of leads to investor friends that cured the loan, bought from the seller, and moved in a new buyer or lease optioned it.

That is one of the things I would be doing now except I retired January 1st, It was a very interesting ride investing for 60 years, through good times and bad. The only thing that didn't change during those years was self serving politicians taking care of themselves and if some crumbs happened to fall into the plates of the ordinary citizens they represented  they thought their own personal existence was truly manifest destiny.  

When questioned I always just said who are you and why do you want to know? Funny thing was they were usually people with a mental hang up of some kind or people that didn't want to be found by any one or paranoid, so I didn't take them to serious and asked you seem to be the neighborhood busy body so do you know of anyone who... of course you need to reword that. One was a squatter and didn't want evidence of his squatting being created. That was a good lead because I never would have given that house a second glance, it was in good shape and appeared to be occupied.

I did have one that was a neighborhood watch person that saw me cruising slowly and the big problem was the elementary school had just let out and I was going about the same rate of speed as 4 girls about nine years old were walking. When I said who are you and why do you want to know he answered he was neighborhood watch and then we started talking. He turned out to be a great source of information and he gave me two leads at that point and one turned into a deal, and he was really happy when I stopped by with his reward .

You have boots on the ground available to you now. Just find a experienced BPO agent that does business with the asset managers doing foreclosures. I used a few and they were thrilled not to have to make the formal reports and jump through the hoops and wait forever to be paid. The last one I used was only getting $35 from the lenders at that point and when I told him the info I wanted from him and what I was paying I went to the top of his list. He even started feeding me leads. The area was out of my county but a good area to buy and sell in and worth going to now and then to do business, plus he feed me and several of my investor friends a lot of good leads. Became a first class bird-dog.

Gary

The answer is no you do not need to disclose provided you are approaching and acting as a principle only, and in no way cross over to a agency situation real or implied. And remember in an implied situation it only matters what the other party believes not what you think. 

Now the but comes into play, if you become a Realtor member the code of ethics requires you to disclose but you can't lose your license, just your Realtor status. Generally the first time is a fine and a strict tongue lashing. 

Now the other but, most people like the idea of you being a licensed agent because they have the idea you know what your doing regarding the law and paperwork etc. So I recommend that you develop a disclosure form stating you are an agent acting as a principle and are representing only yourself, and in no way are you acting on behalf of the seller or buyer or any other party in any agency status, form of agency or capacity whatsoever. This will cut off any implied agency positions the other party may try to pull later down the road especially if a lawyer is brought into the game and plays the implied agency card.

My job is to find distressed property owners, if their property is in bad condition that may or may not lead to greater profits, thus the greater profits is the lure.. So I suggest you focus on the owners not the property to start with even though condition is a great clue that there is possibly a distressed owner attached to it. As Henry Kaiser(great guy) kept saying, find a need and fill it. He said that to me as a kid and that thought kept going through my brain when I started investing. So I qualify the owner and find the need before I qualify the property and attempt to fill the need when I start my negotiations.

Forget the lawyer, doubt whether he ever bought any real estate except his house, if he has even done that. Most closing attorneys are glorified escrow clerks. Glad we were not stuck with them in California. 

For a period of several years I seem to get a lot of lawyers wanting to use me when it came time for them to sell their personal residences. I don't know why it was happening but it was nice. What got me was how many didn't question me on anything, I said sign here, they signed here. 

Some did ask basic real estate questions and I answered them by saying as I know you know, it is still the same, blah blah blah. I know in your specialty you don't have time to keep track of what is happening in other areas of law outside your specialty, but I try to make it a point to stay current in real estate law even though I'm not an attorney. Then I would say I was going to go to law school back in the day but I got married instead and never regretted not going to law school ever, my wife was a far better deal then that J.D.. 

I live in the real world, both of you get licensed. Three years from now you can both be ex-lovers, so both having a license is a better separation issue. I used to sell homes to unmarried couples often and usually ended up watching two enemies trying to win a war somewhere down the road. Worse then a divorce fight usually except usually no child support issues and no divorce attorney racking up as many fees as they can. 

Yes I was sort of a playboy when I was very young and understand non-commitment, and then I met "the one", no way would I believe someone really cares fully unless they are willing to go all the way to I do and mean it, why aren't you married yet? She really isn't the one,  just asking to get a feel of your future together and how you should do business together, suggest using legal entities on investments you hold jointly. My personal experience with such couples is 80% within 5 years were completely estranged, so you should plan accordingly with that as a possibility.

Don't know much about your area, but I will assume it is a decent size market. 

First step check the net and newspaper for estate sales in your area and go. You will likely find people who are doing this already, so your competition. I wouldn't ask them anything directly about their business, just look for bargains and ask are you the executor of the estate, they say no, and you say are you one of the heirs. They say no I...  And you say wow I didn't know there were people willing to do that, sounds like an awful lot of work, how much does it cost a person to use your services if say one of my loved ones dies. 

Now you have found out who your competition is. Now you ask the executor questions. It has been suggested to me that I start a service as a addition to my regular profession. Would you be so kind to take 5 minutes to answer some questions for me based on your recent experience of being an executor. I have bought the entire estate including the real estate which has been the most profitable. I found an honest provider of these services and joined forces. I found many that used buying the entire estate cheap, less the real estate,  that executors went for because the entire property was cleared out quickly. These people were well versed in true worth and they picked up antiques, paintings, etc at 10% of there true value or or even much less. they felt no duty or obligations to their customers.

I remember going through one property and seeing a painting done by an artist who I had just seen several of her paintings from the 1800's in San Diego at a art exhibition and I really liked her work. I was there to make an offer on the home but I commented I bet there is a lot of competition for that painting. She said well the woman that came through yesterday with XYZ estate sale services said she had a perfect spot in her home for it and offered me $300 on the spot for it. I told her I would think about it and let her know tomorrow, I said I guess she would have a spot for a painting probably worth $60,000, you need to move that to a safe place. I had two clients, a married couple that had been antique dealers for over 30 years come over quickly and found the furniture which I thought were reproductions were actually real, they estimated the contents of the home to be worth at least $300,000 dollars, and this was in 1984 dollars. The house was worth only about $35k. The deceased was not rich, she had just bought things she really liked used over the years and took good care of them. She didn't know it she but made some fabulous buys. The executor was planning to call a used furniture dealer, but hadn't because the estate woman showed up.

Rule one stop,knock and ask. Investigate, and just because someone answers doesn't mean they are the owner. I have gotten squatters, deadbeat relatives going for free housing, actual tenants that quit paying when their checks were never deposited and they "waited" to hear from the landlord. Check it out, is the meter running, are utilities on.

After while I just got a feeling with certain occupants and I used the what are you doing in my house opening. Not the greatest approach but effective. My next step of course was to ask the neighbors. Hi, I'm Brian and I was planning on redoing the house next door to improve the neighborhood for everyone but now I have concerns that maybe I haven't been dealing with the real owner, what can you tell me about the real owner.

Next step property tax records, who is getting the tax bill and are taxes current. 

My main objective is I know the property is distressed, but is the owner distressed or even alive.