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Exclusive Listing and NEO running in parallel

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This topic contains 24 replies, has 0 voices, and was last updated by Avatar of areyes areyes 11 years, 4 months ago.

Viewing 15 posts - 1 through 15 (of 26 total)
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  • #5554
    Avatar of areyes
    areyes
    Member

    Is this possible? Are there any conflicts?

    My intent is to go after exclusive MLS listings, make an offer and a NEO to the agent, make sure the agent and their broker are on board and disclosed how the process works, get the NEO signed “while” its being exclusively listed by the agent, then market the property to bring in non conventional buyers aka RB’s. If a suitable RB fits the criteria, the agent and broker knowingly and willing to cancel their exclusive listing to allow me(investor) and seller to proceed with option and trust setup. Agent and broker will get their commission paid at close of escrow.

    So how can I get my NEO signed and allow the agent to keep their exclusive listing agreement in place and do simultaneous marketing?

    #28907
    Avatar of areyes
    areyes
    Member

    Nevermind. I figured it out!

    This is going to be huge!

    #28908
    Avatar of rick
    rick
    Participant

    Alvin,

    One way to approach the Realtors might be to ask them if they know any other Realtors that are also investors. When they say: I am an investor. I believe it puts them into a different frame of mind. Ask them about their experience and what kind of investing they like to do. Get them a noddin and a bobbin and swinging on a rope like Tarzan. Then explain the setup and how they can be an investor in the transaction. Show them the numbers.
    Something like that.

    Good luck.

    #28909
    Avatar of homesavers
    NULL
    Member

    Rick you can try that but let me share something. Most Realtors hate investors. Do not every tell a Realtor that you are an “investor” unless you are dealing with a Realtor that specifically markets investor types.

    #28910
    Avatar of homesavers
    NULL
    Member

    @areyes wrote:

    Is this possible? Are there any conflicts?

    My intent is to go after exclusive MLS listings, make an offer and a NEO to the agent, make sure the agent and their broker are on board and disclosed how the process works, get the NEO signed “while” its being exclusively listed by the agent, then market the property to bring in non conventional buyers aka RB’s. If a suitable RB fits the criteria, the agent and broker knowingly and willing to cancel their exclusive listing to allow me(investor) and seller to proceed with option and trust setup. Agent and broker will get their commission paid at close of escrow.

    So how can I get my NEO signed and allow the agent to keep their exclusive listing agreement in place and do simultaneous marketing?

    Check out the MLS rules on this one. The legal implications are manifold.

    #28911
    Avatar of cashflow
    cashflow
    Member

    @areyes wrote:

    Nevermind. I figured it out!

    This is going to be huge!

    Alvin

    When you say agent and broker will receive their commission at the close of escrow, do you mean at the close of escrow years down the road when they actually purchase? I wouldn’t imagine the agent/broker would want to wait 3-5 years to get paid, but maybe I mis-understood what you mean by close of escrow

    Scott

    #28912
    Avatar of scott
    scott
    Member

    If you have a license Alvin you might have to use a CAR form. Joe will know that answer.

    I tell REALTORS that I have a real estate and loan officer license but I will be a principal in the transaction. Telling them will filter out the ones that don’t want to work with investors.

    #28913
    Avatar of jerry carey
    jerry carey
    Member

    Alvin said:

    My intent is to go after exclusive MLS listings …

    Isn’t that an oxymoron? I thought a an “Exclsive Listing” could only be sold by the listing brokerage! If things have changed … please correct me. If my premise is correct … an exclusive listing cannot be put on the Multiple Listing Service (MLS) for other brokers and agents to see … since it is a property that they cannot Sell and the MLS cannot be viewed by the general public :!:

    As far as a “listing” and a “NEO’ running simultaneously… I’ll say two things: 1.) I believe that in the listing agreement there is a section that sales by other persons or entities can be exempted from paying a commission! and 2). While we like to “Play Nice” with Realtors … we legally have no problem going around their listings as we are not buying or offering “realty” … but rather “personalty” … an beneficial interest in a trust :!:

    Jerry Carey

    #28914
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @homesavers wrote:

    Rick you can try that but let me share something. Most Realtors hate investors. Do not every tell a Realtor that you are an “investor” unless you are dealing with a Realtor that specifically markets investor types.

    Sorry, I strongly disagree. ALWAYS tell a Realtor you are an Investor. Remember the 3rd rule of success. #3 – Be Honest.

    Mr/Ms Realtor, what I’m looking for is a Seller who is willing to stay on their loan and leave their equity in place for a few years, yada yada yada…

    … in a few years my client/partner will refinance the place in his/her own name, pay off your clients encumbrances and… yada yada yada, FAIR ENOUGH?

    Or just tell them you are my (Scott Moyes, Mortgage Broker in all 50 states) personal assistant or partner and that we are looking for homes for our clients, that in return for a full price offer, your seller might be willing to… you know the rest.

    The reason that Realtors, as you say and I don’t agree, hate Investors, is because Investors are NOT ALWAYS HONEST with Realtors.

    #28915
    Avatar of homesavers
    NULL
    Member

    Okay Scott you got me there. It has been my personal experience with Realtors and what they have told me.

    I tried the method over the weekend with a couple that cannot afford their home saying I have a partner that is interested in taking over your payments. They are about 80K over encumbered and one month behind. They were not interested because they thought they would be taken advantage of. So I left without an NEO signed.

    #28916
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @homesavers wrote:

    I tried the method over the weekend with a couple that cannot afford their home saying I have a partner that is interested in taking over your payments. They are about 80K over encumbered and one month behind. They were not interested because they thought they would be taken advantage of. So I left without an NEO signed.

    What “method” did you try?

    Why are you going to their home?

    “SEND” them an offer. There is no need to ever go to a Seller’s home to make an offer. Just call them and ask the question. If they’re not interested in a Full Price Offer so be it, hang up, save gas and call the next one.

    You probably spent at least 30 minutes, if not more, verbally barfing all over them. Ask a question, send an offer. It’s that simple. You wasted not only their time, but yours too.

    #28917
    Avatar of sstanton
    sstanton
    Member

    Why are you going to their home?

    “SEND” them an offer. There is no need to ever go to a Seller’s home to make an offer. Just call them and ask the question. If they’re not interested in a Full Price Offer so be it, hang up, save gas and call the next one.

    I somewhat and very lightly disagree with this for one point and one point only. If you have never talked to a seller about the offer, neo, appendix 1, you can take the time to sit with a seller and go over it in detail. When the seller is done grilling you, you will have a real good understanding of the process. Our good friend, Shawn Watkins, AKA Bigdaddy, use to recommend this.

    I did my first by phone, not across the table and spent an hour talking about it. They turned it down, but the next one did sign the NEO.

    Stu

    #28918
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    1. Other than my initial phone call and script, I don’t ever talk to sellers until they have received the “Terms of Proposal” and have agreed to the Terms.

    2. Next they must email me all their comments, questions and concerns which I will reply to… “in writing” and at my leisure.

    3. They can then take my replies and share them with whomever they wish, usually a trusted adviser, like their broke ass bother in-law that sells vacuums and multi-level life insurance part-time.

    4. They will usually send me a few more questions and comments. Then and only then do we talk more by phone. In 5 minutes I’m agreeing to send them the full NEO “to sign” and send back so I can get started finding a suitable resident co-beneficiary to take over their payments and be 100% responsible for their property.

    5. I start looking for the RB. If I find one in 90 days or less, we close. If I don’t, I walk away and my offer / NEO expires, no big whoop.

    6. NEXT

    No one ever said it was going to be easy, but I will tell you that it is a very SIMPLE business.

    Make a plan and work your plan. You just read mine.

    #28919
    Avatar of homesavers
    NULL
    Member

    @Scott_L._Moyes wrote:

    1. Other than my initial phone call and script, I don’t ever talk to sellers until they have received the “Terms of Proposal” and have agreed to the Terms.

    How many do you talk to before someone agrees to your terms? This will set the benchmark high but will give us an idea as to how effective this is.

    2. Next they must email me all their comments, questions and concerns which I will reply to… “in writing” and at my leisure.

    Any chance on getting a copy of this reply?

    3. They can then take my replies and share them with whomever they wish, usually a trusted adviser, like their broke ass bother in-law that sells vacuums and multi-level life insurance part-time.

    Who usually says, “Hell no I would do that!” With his very educated opinion. (sarcastic tone)

    4. They will usually send me a few more questions and comments. Then and only then do we talk more by phone. In 5 minutes I’m agreeing to send them the full NEO “to sign” and send back so I can get started finding a suitable resident co-beneficiary to take over their payments and be 100% responsible for their property.

    Man I would sure like to have that 5 minute call MP3′d

    5. I start looking for the RB. If I find one in 90 days or less, we close. If I don’t, I walk away and my offer / NEO expires, no big whoop.

    Looking for the RB many, many ways but what is most effective for you? Yard signs?

    6. NEXT

    No one ever said it was going to be easy, but I will tell you that it is a very SIMPLE business.

    Simple is not easy. Working for money is never easy. It is not supposed to be.

    Make a plan and work your plan. You just read mine.

    IF your plan can work for me then I will work it. I think there are some things I am missing though since everybody chokes at the Trust proposal. For a purchase and sale they do not choke especially an Option to Purchase. I am working on a hybrid to combine the NEO with and actual Purchase and Sale agreement. I am field testing it now.

    #28920
    Avatar of areyes
    areyes
    Member

    Day 1
    Just send out the email cover letter and terms of proposal that gives a high level view of our intent.

    Day 2
    Send out the NEO

    Day 3
    If they accept the NEO, you can send out Appendix 1 (purchase offer)

    One at a time.

Viewing 15 posts - 1 through 15 (of 26 total)

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