realdealer... it is not a twinge of loyalty...

It is called a contract and possibly intergrity... which as a non Realtor and non licensed person you may not understand.

You also appear to miss understand the actual rule on solicitation...

You can not solicit another listing and can not interfere with that listing but you MAY provide additional services.

I receive referrals from other brokerages in many cases where they find their seller is in a situations such as upside down on mortgages, and in the default / foreclosure process.

In these situations I make arrangements with them for either referral fees or simply perform the LMC activities as a Fee based activity with the brokerage still handling the listing. Actually most simply refer the listing and do not request fees in an attempt to assist their clients in situations they are less knowledgeable in handling effectively.

Since my purchase takes place long after the listing has expired, the seller paying their agent anything is a courtesy. But we can debate that in another thread.

My comments as they relate to the topic are simply that it's necessary (in my experience) to deal directly with the owner when making creative offers. As great as it would be to do deals through agents the reality is that 99.99% of agents would rather get nothing than be involved in a creative deal.

It never did make sense to me until an investor/agent explained the whole reputation issue, and the fact that agents don't know the law, so anything they didn't learn in class is automatically assumed to be illegal.

Unfortunately I'll have to agree with that in many cases. The Licensing classes are totally inadequate even for traditional real estate activities. Licensed does not mean qualified nor does REALTORŪ.. it is only a starting point and an ending point for too many.

Is it allowed for a realtor/investor to do wholesaling, tax leins/notes, etc.?

also assigning contracts... maybe that's what wholesaling is???? when you do that don't you get the fee from the client for assigning the contract AND from the seller of the property because you presented the buyer? Are you saying that as long as you disclose to the buyer... what??? how much you bought the property for or what???

just as long as your the pricipal buyer, you can either assign/wholesale/flip your contract to the end buyer or you can assign your escrow or do a simultaneously close/double close. make sure you do your disclosures.

find a title and escrow company that understands creative investors.

Your brokerage may and often will have limitations on what type real estate activities you may become involved with... In most states, As long as you are associated with a brokerage, they have a responsibility for any real estate activity you become involved with... even sale or purchase of your own properties or any other real estate related tasks. Tax liens and notes may fall outside the brokerages control... but you need to make sure your broker is aware and has no problem with your activities... before the fact.

i agree,
i got kicked out of 2 real estate firms, one of them was REMAX. it was a good decision because they wouldve held me back on alot of opportunities.
i was learning non tradtional financing and investments to set myself apart from the competition within the company and the local agents. when i talked to broker's and other agents, they usually think im speaking a different language or theyll say something ignorant like it's illegal/unethical. another thing i found out was that most agents dont invest or they just dont know how. i was definately surprised by that since their broker's wont allow them to do personal investments. they insist on making their broker's rich with traditional buying/selling. i mean how many retailer buyers are out there? theres alot more buyers who are below sub prime, with cash and arent qualified for conventional financing. who's servicing these leads? traditional realtors wouldnt know how to deal with these kind of leads and would simply pass up the opportunity onto a loan officer/broker to fix their credit up to industry standards. if you can take a delayed or partial commission using seller financing strategies then you might see more leads in your pipeline. you can find alot more buyers if they dont have to do bank qualifications or credit checks. ask for 5% downpayment plus 2 months upfront and pay yourself with that money and use the rest for reserves or a contigency fund.

if youre going to learn these strategies, many brokers would see it as a liability. be prepared to find another broker. you will need to find a creative investment broker who implements these strategies on a daily basis.

when i get my broker's license im definately going to recruit investment agents only. first thing id teach them is finance since its straight numbers and money. then id teach them how to use money partners and credit partners. then how to do asset protection using LLC's and trusts and so on.

im always hearing that you must treat this RE industry as a business. i believe that a broker should teach their agents on how to set up corporate entities whether they have E&O or not.

Strategies my hinny!
To say the least, I am
Shocked and Appalled

Impressed? Not one bit!

So what are you teaching - Fraud 101?

There is a definite reason why you were asked to leave your prior Brokerages - DUH! :rolleyes:

::sigh:: ill take that as an ignorant statement unless you can prove me otherwise. please tell me how creative financing is fraudulent? seller carry back, discounted notes, short sales, lease options, wraps, contract for deed, land trusts, pre foreclosures, wholesaling, retailing, etc. please dont mention anything about violating the due on sale clause or equitable interest because i will surely give you a legal statute on this.

btw: you can also see commercial Realtors using these types of strategies in regards to master leases, options, wholesaling, land trusts, seller carry backs.

yes because we didnt meet eye to eye. both of my prior brokerages were managed by 60 year old brokers who probably cant accept a paradigm shift. theyre stuck in their old ways/systems which im not complaining about. conventional RE is what works for them - not me.

btw: i checked out your site, and since youre a principal broker, do you allow your agents to do personal investments? rehabs and straight rentals are easy to do and any monkey can do that. im talking about those creative financing i mentioned above? do you have any investments yourself? (exclude any rehab/rental deals since this thread is based off on acquisitions using no money or credit deals). im hoping for a real good answer here.

2 years ago i thought i needed a licensed to even become an investor. then i found out you dont even need a RE license to sell FSBO or buy a property without agency representation.

i dont know. maybe its just me but sometimes i feel i dont really belong on this website. it was nice as a newbie to find a sense of direction in this industry and theres a few posters on here that i can relate to in regards to investing. to be honest i am taking your response as a personal blow because im passionate about learning creative investments. it took me 2 years to build up my knowledge base and resources and it gets tiring to even try and defend myself to brokers/Realtors. its better that i stay within an investors website with like minded people/investors. i only contribute to give new agents another avenue for out of the box thinking or even if one encounters a creative transaction i can definately give 3-5 more different angles to help solve the problem.

no offense with this but its like when youre tired of all the whining residential buyers and emotional sellers, you then decide to move on to commercial side. thats how i feel with traditional realtors. i hesitate to even talk to local realtors because they will automatically start whining on legality and ethics. its even funnier when i ask them to back it up because i know they can't. i know their brokers didnt teach them what i know so i sometimes end up educating them to prove my point.

yea this is probably my last post in this investment forum. ill probably visit from time to time to read up but i wont post anything else since some of you might think its fraudulent/illegal/unethical blah blah blah. ive heard it all and im done with it. ill be hanging in the commercial forum where the big boys play.

donna i think you need a paradigm shift

peace

Alvin Reyes
Founder/REI Consultant/Realtor
Paradigm Capital Group LLC
www.pcginvestors.com

if you want to talk about investments and entry/exit strategies email me at areyes@pcginvestors.com or drop a PM

Donna,
You are way off base on this one. What Alvin is talking is not Fraud at all it is simply creative financing. I use creative financing whenever possible in my personal investments. Alvin is right on when he says that most agents and brokers do not invest in real estate. You would think it would be the opposite but it seems that most agent will gladly make others wealthy but fail to invest in real estate themselves.

Donna,
Instead of throwing out Fraud 101 and such how about defending your position with some facts?
You will have a very hard time finding any statute or ruling to back your belief.

People often fear what they don't understand,it's a common reaction.

When you know the facts through knowledge,experience,and education the fear will go away.

I agree for a broker there is more liability having investors as agents,compared to a normal listing or selling transaction there is more that someone can mess up and the ramifications are bigger.

I am with a broker that specializes in investing.We have over 1,000 agents and it's not a problem however she runs a really tight ship.Anyone caught doing anything illegal is terminated.There is a huge difference between creative financing and committing fraud and most don't know the difference so they stay away completely and say everything is illegal which is not true.

Alvin,

Please come back one more time to answer this question.
....Have you made any money from real estate yet?

Yes, $30k on my first deal

Pulling out $40k HELOC or refi cash out on my personal residence to leverage out into an 8 unit apartment or 2-3 SFR outside of CA

im also currently raising 20% downpayment from private investors to venture into a condo conversion here in los angeles. im not using my credit nor my money on this deal. i plan to wholesale to investors or retail to the public.

I am really interested in learning more about this creative financing. Please point me in the direction. WHERE can I get knowledge about the different creative investment strategies that you mentioned so I can learn well, learn quickly and learn right?