All Forum Posts by: Jason O.

Also, why not start with the bird dog contract template Josh has provided for us here on BP.

http://www.biggerpockets.com/forms/bird-dog-agreement.pdf

This at least gives you somewhere to start and then you can tailor it to your own needs. And as J Scott stated, be sure to let your attorney look at it and give the thumbs up.

Good idea. I don't think I'll go to a lawyer. I don't want to shell out the cash.
At first, partner said he didn't want an agreement unless I wanted one, but Friday he insisted.

It doesn't seem like he's expecting a highly detailed agreement that will hold up in court.

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Originally posted by J Scott:

What is the purpose of the agreement?

Are you looking for something that will be enforceable in court? Are you looking for something that will clarify roles and responsibilities are both parties? Are you looking for just a basic description of what you'll be doing for him?

Regardless of which it is, I'd think you'd still want more than this. For example, how do you define net profit? Or the fact that the agreement can be canceled at anytime -- does he still owe you money if he cancels before a deal closes? What exactly are you providing for your fee?

And, of course, if this is something you expect to hold up in court, it is far short of what you probably want. I would recommend talking to an attorney.

Net profit would be after all the closing costs. The only way a deal closes is when I get the paperwork signed with him along with seller.

I'm providing my fee for finding the leads, mail outs, and phone contact with owners.

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This is a statement I got from a partner:

"If you are present when the paperwork is signed, you will receive 10% of the net profit of the deal "

So if I'm not present, I don't get my 10%???

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Consultant agrees to generate leads for Seller/Buyer. Compensation from Seller/Buyer to Consultant is a marketing fee of % of net profit.

Agreement can be cancelled by either parties any time.

Any other clauses that are needed?

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I'm getting impatient. I want to focus on REI but I would like some extra income by getting my re license doing rentals in Manhattan. I mean I'm going to stick with REI no matter what. I'd like to give getting a license a shot if REI doesn't come to fruition fast enough.

I have a partner. I feel like I have to wait for him to make the deal work. I like being active. Maybe, I should continue to learn to work on my own deals.

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Originally posted by Marc Freislinger:

So let me get this right. The bank wants to write off bad debt, they use their broker to find a buyer and determine the value of the property. They agree to the amount of debt they are willing to write-off. Then, the investor buying the property must disclose their B-C contract. The bank realises their broker sucks, cancels the deal, then sells direct to the C buyer, cutting out all the hard work B did?

And investors are the bad guys?

I think if the bank is given all the information they need to make a dtermination as to the current value of the house, with nothing left out, and they choose the amount to write off, then the investor should be able to make money by selling the house for what MUST be over market value. Because the bank wouldn't write it off under market right?

Is there a clause that prevents the bank canceling a transaction to prevent circumventing the investor? A penalty fee?

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Originally posted by kyand:

For funding the A-B side, unless you have the money yourself or have a partner with the money, transactional funding is a good way to go.

Back in the day, title companies would do a simultaneous close, whereby the end buyer's money was used to fund the A-B transaction. But the number of title companies that will still do this are few and far between. There are a couple in my area that will still do the simo close... so it is possible to find one, but your chances are slim.

The trans funding does not cover a down payment or earnest money deposit. It covers the purchase of the property on the A-B transaction (including your closing costs), and you have to have your end buyer already lined up and ready to go.

Are simultaneous closings illegal? Is that why alot of title companies won't do it anymore?

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Is the trans funding for the total cost of the home or just to cover the down payment?

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Is there a way to do a double close w/o trans funding? What other methods are there?

Is this a smart idea? In order to cover any losses, I get a non refundable down payment from end buyer that includes the 1.75 to 2% interest on the trans funding and additional amount for me and seller. Is this what you experienced investors do?

So, if the end buyer backs out, would this type of clause on the option help? if the end buyer backs out, investor still has the remaining time left of the time period stated in the option, otherwise, the option is voided.

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Besides a double close, what's another exit strategy for REO's?

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All Forum Posts by: Jason O.

Jason O. has started 31 posts and replied 101 times.

Post: can a bird dog agreement be as simple as this?

Post: can a bird dog agreement be as simple as this?

Post: only paid if I'm present at deal

Post: can a bird dog agreement be as simple as this?

Post: antsy and impatient

Post: What is considered Short Payoff Fraud?

Post: double closing & transactional funding & clauses

Post: double closing & transactional funding & clauses

Post: double closing & transactional funding & clauses

Post: flipping reo without end buyer going around you