Question About Owner Financing...
I have an uncle that's a big fan of this...he has several folks paying monthly for various investments he has in both commercial and residential real estate.
However, my question is: How does one know or investigate the owner's financial situation? What if the owner of a property were to go bankrupt, would you not lose the property? If you're paying someone for the property, they still own it, correct?
You make sure the title is done is uch a way that there is little likelihood of loosing your investment. You also make sure the property is worth whatever you will be loaning out.
What are you hoping to get from this? If you are looking to get paid something, you probably need to do some more work such as contacting the owner and determining if there is a possible sale. The more you do, the more valuable your lead is.
Thanks edmeyer, and yes I would love to get paid. Okay so when I contact the owner do I let them know what my intentions are as far as bringing in a possible buyer. Or do I just portray as if I am the buyer?
Tell them you have investors who want to buy there house. Get as much info on them and house as you can and strike a deal with your investor...
The point of my previous post is that if you do nothing other than tell an investor that you found a property that seems to be vacant with high grass, you are not likely to get much interest. If you look at some of the posts, you will see many that ask how to find an owner on a property that appears vacant. So, you might consider the following steps.
1) Locate the owner
2) Determine if he/she is willing to sell
3) Negotiate the terms of a sale
Negotiating the terms does not necessarily mean entering into a contract although it could. But, at each step your "lead" becomes more valuable.
There are also opportunities for you to acquire control or purchase the property for yourself using very little or no money.
What's the difference between bird-dogging for investors and acting as a realtor for your buyers? In all commission paid negotiations, shouldn't you be licensed for this kind of activity?
And by that I mean the bird-dogger will receive a cut from the investor's earnings; a commission.
I am not sure what you mean by "risk". You are starting with nothing and worse case, you wind up with nothing. If you are going to be involved with RE, you should learn to do this.
For starters if you locate the owner you can tell him/her that you may want to buy the property. If they say that they might be interested, you can explore what might work in the way of a sale. You will probably need to find out what the property is worth through comps. You can ask if the owner would like to have a monthly payment each month. If yes, you can ask for some seller assisted financing.
If they are not interested in selling, you can ask if they would like to rent to you. If yes, you can tell them how much you like to take care of places where you live and if you cared for it well, you might like to own it some time. Then ask if they might sell to you in the future. If yes, you have the makings of a lease option.
dclark,
You are on the right track. Find out as much info as you feel you can. As time goes on it will become easy for you to do things you never thought you could. Just get out there and start doing it. The more info you get the more you will be worth, get paid while you learn!
Good Luck!!
Scott
Thanks for words of encouragement, getgoing. Here is an update.
I started calling my list of investors, some of the numbers are the 1-800 automated voicemails. I just left messages. A few numbers I called were local numbers and I was actually able to talk to the investors and I got a warm response. So far every local investor I spoke with was cool with me working as birddog for them. I'm glad I started calling them because I found out what they are looking for and now I can tailor my search for what they want.
And as far as the houses. I called the number on the FSBO sign. No answer, I left a message. I'm waiting on a call back.
Thanks again everyone!
Dclark, Once you find the investor you want to work with on the deal be sure that you have a clear understanding between you as to exactly what is expected and the amount you are to receive for your info. Also a timeframe as to when you will recive it. Most investors are happy to take care of a bird dog because your service is valuable to them but occasionally there are people who will try to take advantage of you, especially if you give too much info before you have a clear arrangement. Like telling you they already knew about it. Good luck >>> George
Thanks Connections. I will make sure I have a clear agreement.
Does anyone have some type simple contract that I can use? Or do I even need one. I was thinking if they burn me I will never use them again.