Strategic Real Estate Coach Members

Bryan Scott said:

I am having issues  with clarity on how to structure deals where your buying agent finds listed properties for you to buy. You will get it. This is one of the tougher concepts to grasp. I will help you as much as I can.

Here's the scenario…

Your agent approaches A's listing agent and makes presentation.  Offer is made.  Because the listing agent will want to use their paperwork, you use the Short Sale Addendum Make sure it's JW's and attach to the purchase contract.  Now you (B) have the property under contract w/ the seller (A) and are ready to begin short sale negotiations.  You record your "Notice of Contract" Agreement, etc. Sounds good so far.

Now, so you can begin the marketing process and find a buyer YOU will sell to,  you then (this is the part I am not totally clear on)…. What do your local MLS rules say about listings? Knowing your local rules will keep you safe and away from people pointing a finger. I talk to many "seasoned" investors who do not know their own local rules. Know them!

Choice 1. Have the listing agent for A keep the property listed and use the Listing Agreement Addendum giving you authority to approve and counter all offers…(property is under contract by you, as buyer.  Realtor will probably want to mark as under contract in MLS depending on MLS guidelines. Does MLS force all listings to go pending? Local rules say … ? If this occurs many times other realtors won't even show the property, thinking it's no longer available. ) In my area I can keep property listed. In fact the local Far-Bar (florida) short sale addendum says that the listing will remain active looking for back-up offers.

Or….

Choice 2. The listing agent cancels the listing w/ the seller (A) with an agreement that listing agent will be paid on A – B, but enters into a new agreement w/ you (or your buying agent does) as seller, as your listing agent?Good luck on this option as many agents don't like to withdraw. If your MLS permits, choice 1 is what I would do.

Or… something else entirely that I don't understand?

Choice 3. Not bothering with choice 1 or 2. Get a property under contract and use the wholesaling technique. This includes buyers list and bandit signs. Network with your local wholesalers and pay to use their buyers list and bandit sign system. Find cash buyers/investors and take their order! Then find what they want and flip it. This may be the easiest way to tackle listed properties because the whole listing agreement crap gets thrown out the window. However, if you Realtor doesn't have a problem keeping the listing active and passing along to you the new "buyers" then do both!

If you are a rookie investor, getting organic deals is the best way to go. Chasing listed properties is very challenging to even the most experienced investors.

Would somoene please let me know where I can get this information about this or explain specifically how this is done and where to find the documents to do it? Info is in the USSS

Thanks very much for your help.