All Forum Posts by: David D.

Matt & J Scott,

I like the idea of giving the commission to the listing agent. That gives incentive and less work for listing agent, and I keep control. How exactly do you word the offer?

I usually submit a Cooperating Broker Compensation (CBC) form with the offer, which specifies my split of the commission. Is it as simple as putting a zero on that form where I would normally request the commission offered in the MLS?

Mark: CA HML is 12% or 13%, 3 points. Any thoughts why MI would be so much higher?

It would be unusual not to have a date somewhere at the beginning of a contract. But, if there was none, in an addendum, for example, I would refer to the contract as "The purchase offer of acceptance date Oct 5 between Sally seller and Buck buyer, ...". If the contract was dated I would say "The purchase offer dated Oct 1 between Sally seller and Buck buyer, ...".

Don't know the answer for sure, that's just how I would do it. I think the important thing is to word it in such a way as to avoid any confusion or ambiguity. If everything is clear it almost doesn't matter how it is worded, imo.

It depends on the working in the contract. The standard realtor contract in CA has words that would make the oct 5 date the start of a 3 day clock after which the offer would expire. The oct 10 date would be the legal "acceptance" date, the start of a clock the counts down the inspections, closing time frame, etc. Both dates have legal significance.

There could even be a third date, the date the contract was written, oct 1 for example. This would be the date that would be used when referring to the purchase offer in other documents.

Jeff S.,

I too am a HML ... your points are well taken. I haven't done a SDIRA deal yet but am in the process of picking a custodian. Equity Trust seems to be recommended a lot on this site, but that's not the point of my post.

LLC's with checkbook control seem to be expensive, I'm thinking better to have a regular custodian but figure how to speed things up. Maybe as a hml, 1) only do refi's for sdira deals, therefore speed not as critical, and, 2) get docs signed and notarized in parallel with opening escrow, that is, you as a lender create docs and work directly with the borrower to get signatures, thus able to provide completed docs (much) quicker to custodian. Maybe this would make the speed things up.

Will I have better success if I make an all cash offer myself as a broker, or, make the offer through the listing agent?

I can offer a little more if I make the offer myself because I get part of the commission, but, I'm thinking I might have better overall success having the listing agent get the commission because (s)he might work harder and possibly have sway with the seller.

The article suggest using a Nevada Corp as lender. I wonder if that is somehow better than using a domestic corporation.

Leah: Interesting. Not only must you disclose but it must be in caps on the first page. Seems like an extreme law. Who mandates that? Is it your department of real estate, statute, mls?

Mathew: I don't know anything about other states. My comments refer to ca only. Maybe i unwittingly diverted from the original question.

J Scott: I use a discount broker when selling because they are cheap and do work I don't want to do, but I don't have to be represented.

The ca dre commissioner was asked if there was a law or regulation requiring a licensee to disclose license status when acting strictly as a principal...he couldn't find anything. His letter is reprinted in a real estate book I have.

What some people do, including myself, when there is no agent in the transaction, is make a statement, usually in the escrow instructions, to the effect that "Seller is a licensee acting for his own account". This makes it clear you are a licensee but not representing anybody, so buyer could never claim he thought he was represented by you as a licensee.

There may be no law or dre reg that requires disclosing license status, but there is something in my local mls rules that says seller must disclose license status if seller is licensed. This is a local mls rule, to use their mls system, it is nothing more. And yes, any house I sell using mls has the statement that seller is a licensee, as required.

That's my take.