No, It's Not Illegal........
I just spoke with a Realtor, that had some very attractive ads in Sunday's paper. He told me that what I was doing was illegal ( assigning properties to investors )
I tried to explain, that iti sn't illegal, but I didn't have anything to refer him to read or any kind of SOLID literature to back up my statements.
Can someone tell me what the clause in RESPA ( or whatever ) is that makes what we do legal?? That way, I can send these doubtful Realtors and title companies something in writing.
Thanks in advance
Chris,
I am not clear on why you feel the need to educate a real estate agent. You are calling about a property they have listed for sale. The agent wants to put the property under contract as quickly as possible.
You (and/or assigns) are the potential buyer. If the agent asks why you are making your offer in your name with "assigns", you say that you work with many different investment partners and you are not sure yet which one is going to particpate in the purchase with you.
Perhaps, this will close the door on the agent's doubts about an illegal activity.
There's no clause in RESPA that will prove or disprove your point. There's only one way when what you're doing is illegal - if you're signing HUD or REO contracts to buy specifically as an owner-occupant and then assigning them to investors. Other than that, you're free to assign your contract rights to anybody as long as the purchaser on the contract states "John Doe(or John Doe's LLC/Corp) and his/its Assignees".
I have learned over the years, if someone tells me it is illegal or it can’t be done, it usually means it can’t be done because they don’t know how to accomplish it.
I do not try and convince them. I find others who acknowledge it can be done, although they may not have done it.
Hi Chris,
when you're told that what you're doing is illegal, you could make the person aware that in fact you are not 'selling' wthout a license, but you are in fact assigning your own 'beneficial interest' in this property to another person who will close the www.deal.Thus it IS peferctly legal.
Once you have the option to purchase from your seller, you have indeed paid $x for this, whether it be $1 or $1000, therefore your are considered a seller, not a broker.
Hope this helps...or hope someone else can explain it better for you if I lost ya !
the Bride
Thanks Curly,
That's exactly what I was looking for.
I normally just hang up on people that give me a problem about it, but then I thought, why not take the time to educate someone who would be worth educating. If they're open minded after my explanation and want to move forward with me, that's one more consistant source of leads I've got in my pocket.
Chris, you're welcome.
Sometimes it's hard to find the words when you're put on the spot....actually, now this realtor will know that you YOU know what you're on about, tell him that anything he sends your way like this, he's still going to make a commsission on..whether it's now as a conventional sale, or down the road a bit as a lease option ...
Either way, it's money in the bank for him..er her.
..And you,, best wishes
Kerry.