OK I didn't know what to put in the subject line. Here's the question:
Me the unlicensed investor. My buyer is approved for a loan. If I find my buyer a home that's listed with a Realtor how can I get paid? I figure I'll need an agreement between me and the buyer so I'm not circumvented. I'd like to handle this like a wholesale double close but don't want to lose my EMD.Thanks, Herbster
Find a house for the client by using the option method of wholesaling.
1. make sure that your buyer is pre-qualified to purchase with a lender before you start looking for the deal
2. find out exactly what the buyer wants and where it should be
3. seek out about 5 properties that fits the buyers profile
4. find out the sellers motivation, make sure seller is not a bank
5. make sure that there is enough equity in the deal for you to get paid by researching comparable sales
6. contact realtor and let him/her know that you are an investor that has a qualified buyer that may be interested in house and that you want to structure a deal using an option agreement so that you can legally be compensated. explain that their commission will be based on full sales price
7. view the property to make sure it's move in ready and what the buyer expects
8. have buyer see the house, either they like it or they wont
9. create option package, option agreement, your option fee docs, buyers proof of funds, earnest money check and contract.
10. Present the complete package to realtor
11. managed the closing process
12. deposit a check
Yes, that was simplified, but that's really the gist of it. If the realtor doesn't want to work with you find another house, there's a million other motivated sellers out there. You will be getting paid by the seller, not the buyer, as most banks will not allow that.
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