All Forum Posts by: Cliff T.

If my non-licensed real estate company obtains an option to purchase a property, can my company then market the property for sale? 

Also, I have my license and do not have any interest in putting this property on the MLS for various reasons.

If I can sell the house for more than appraised value (which is my option amount), I am entitled to keep the difference. 

I suppose I can't market it as FSBO, since I don't own it. What's the best way to market this property I have an option to buy?

As the Brrrr strategy stands on its own legs without real/specific numbers, I'm inquiring into whether or not this strategy has merit from a thousand foot high viewpoint. 

I'm not asking for feedback on a specific deal. Rather, I'm asking if this approach is sound assuming there are no blatant zoning or cash flow issues, as with any strategy. 

No real numbers are required at this point. 

Has anyone done this before or thought about doing it? How did it go? What did you learn/find? 

I live in Charlotte, NC. There aren't many Fourplexes around here. Finding one in decent condition that isn't overpriced is practically impossible... So why not just build my own?

My general line of thinking is to... 

A) Buy a lot large enough to build at least 3 or more Fourplexes on.

B) Build 1 Fourplex. 

C) Refinance it as a primary residence and live in 1 of the 4 units for 12 months.

D) Subdivide the land and build Second Fourplex. 

E) After first 12 months in Fourplex #1, Move into Fourplex #2 and refinance it as a primary residence.

F) Repeat B-E until the land can no longer be further subdivided. 

Looking for advice, tips, and feedback on the feasibility of this strategy! Thanks!!

Non-exclusive agency agreement is stated in OP. 

There would be two very different prices. Traditional with lender via MLS would be lower than FSBO with owner financing.

So, does anyone know if there are any particular forms I should use to make sure I operate within the boundaries of MLS policy?

I meant *at no point do I say "putting it on the MLS as* FSBO"* as Wayne erroneously quoted. That statement makes no sense. You cannot list on the MLS as FSBO...

Not really any good advice in there. At no point do I say "putting it on the MLS and FSBO." I look forward to hearing from other people who are familiar with what I'm talking about. Thanks!!

To clarify: FSBO would be listed by me, the agent, since I (my personal LLC) will hold an option to purchase (or interest) in the property and do not need a license to market it in that case.

MLS price will be much lower than FSBO price, since no appraisal will be needed and we can offer lower than the going interest rate and don't have all the red tape and closing costs of a bank. Of course there will be a greater response and buyers willing to pay a premium for this opportunity. My assignment fee will not be as much as 6% of a lesser sales price. The seller is on the same page, nothing is being hidden. The seller and myself will certainly make a greater profit if not sold on the MLS.

Hi all and THANKS in advance :)

I've got a client/friend who prefers to sell with owner financing. I would normally take over this property and do a lease option with it. However, the HOA is at capacity for rental units and is being strict about the policy. So... We need to sell this property!

The Seller would RATHER sell with owner financing and NO agent fees. I can provide this service easily for him buy obtaining an option to purchase at an agreed upon price and then advertising to sell the home at a higher price with X amount down, Y% interest, yada yada, and then assigning the buyer back to him and collecting an assignment fee.

However, we don't have much time. So we also want to list the house on the MLS.

Assuming I have an option to purchase the property in my LLC's name AND we sign a NON-exclusive agency agreement with my brokerage firm, is there any issue with me advertising the property as FSBO myself and putting it on the MLS?

We would both be better off if the property is not sold through the MLS (no agent fees, no buyer's agent, no brokerage split, no typical appraisal/inspection hassle, higher sales price, all the advantages of a terms deal).

Are there any particular documents that I need to include in this deal? 

I've found an investor group that is building dozens of NICE SFR homes that are above average sales price to RENT for years to come!

I've never seen or heard of anyone doing this with SFR. How do they cash flow? Rent is well below 1%. What's the fundamental principles of this strategy?

They have no intention of selling any of them. They are not even for available for Lease Option. They are "New Build Long Term Holds". 

Thanks to whoever can break this strategy down for me! :)

I think RDPD is a GREAT TOOL! Is a highly skilled ice sculptor going to use a children's plastic pumpkin carving tool? Of course not, but that doesn't mean the children's pumpkin carving tool is lacking in its value it provides children in learning how carve and shape a pumpkin!

I use RDPD as a "sunday school lesson" instrument for those with low or non-existent financial IQ's. It's a beginner's book and a great one at that! It is easy to read, understand, and apply. Does anyone have a better book that you would use to introduce someone to the world of investing that isn't too direct and technical? A "starter book" (which I believe is EXACTLY what RDPD amounts to)...? My go to starter books are: RDPD, Millionaire Next Door, and The Automatic Millionaire Homeowner!

Most of the folks commenting about how it's a pile of rubbish should focus their critique on a title more recently published. How about Unfair Advantage, or We Want You to be Rich?

I've been thinking about starting those soon, so I'd love to see some feedback on the quality of information provided in those books. 

I'd love to get some actual reviews about Kris Krohn... Come on BP, surely we can provide quality feedback on this :)