Investor Buyer Needs Property
“How can I go about looking for a property for a buyer that I have on my list without being a licensed agent?” This is a question that I get a lot – and I notice a lot of different answers are given by experts, gurus, real estate agents etc.
First, let’s be very clear. Real Estate is an area of commerce that is far more regulated than many others. Only licensed real estate professionals are allowed to REPRESENT buyers and sellers in a real estate transaction.
In order to get involved in buying and selling real estate as an investor, and working with buyers and sellers to flip properties or assign contracts, you need to become a PRINCIPAL in the real estate transaction.
That means you need to be either the buyer, or the seller in the transaction, or you need to be affiliated with either the buyer or the seller by way of a partnership or joint venture agreement.
Now, I am not a licensed real estate professional, or practicing law or accounting, but from my personal experience I can share with you here.
Several methods of wholesaling are fairly well known and easy to do when you start with the property. You put the property under contract (you are the BUYER in this contract), then you find a buyer to assign the contract to (your buyer steps into your position as the buyer in your first contract), or sell the property immediately after you’ve closed on your purchase.
But how can you do this for an investor buyer who needs a property? I have used a simple joint venture agreement that has specific provisions for ending the JV at the time the property is purchased.
You could also just build your buyers list and then look for properties for YOU to buy that match your buyers’ buying criteria. Then you will still go through the same paperwork and deal structure as when you’re starting with the property.
Please let me know how you handle this and share your experiences by leaving a comment below! I really appreciate it!
By the way: I’m looking for a wholesale property of up to about $200,000 in a good rental area, LA or Orange County preferred. Could also be land, small units, or small commercial building…
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Category: 6-Figure Syndication
