To those investors using lease options regularly, can you please tell me why real estate agents would call you about properties when they will not make any money on the deal as there is no sale of the property from which they can earn their commission?
Do you have to buy privately to make this strategy successful?
Robert Bou-Hamdan
Mortgage Adviser0414 347 771
[email protected]
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdI just work on educating them and offer to pay 0.25% of sales price and remaining 1.25% if option is excercised. (of course the 1.25% is paid buy the vendor as a condition of the sale. also just give the agent the management percentage… once they realise that this is an ongoing relationship… they come around. – But that is just one of my strategies.
I would tell you to go away if you came to me with that.
Robert Bou-Hamdan
Mortgage Adviser0414 347 771
[email protected]
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdThat is fine… I am sure you have a profitable business as a real estate agent.
moving right along…. there are thousands of agents out there and I have built ongoing business relationships with a lot from remaining loyal and giving them re-occuring business.If they are making a dollar managing the day to day property management services and I am making a dollar and not spending the time mucking about with the day to day stuff… I am free to find other properties and build more contacts and clients.
NEXT!In Australia, property managers do not sell real estsate. By the way, I am a mortgage adviser – not a real estate agent.
Back to the question – why would they call you if it means losing their commission?
Also, what is the 1.5% you mentioned about anyway?
Robert Bou-Hamdan
Mortgage Adviser0414 347 771
[email protected]
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdI do not arrange the deal with the agent. I make the business arrangement with the Principal of the business -(The Big Kahuna )
The Big Kahuna… generally has a wider scope of vision than an agent and can still see business growth through both sales and property management.
… and let them (together with me of course) explain and go through the process of education of the complete staff within the organisation.The 1.5% is of the sale price of the property.
and as the weekly amount of most of the properties I control bring in between $395 and $680 weekly… they seem to like it and will work with me to get more on the books with them.
Cheers,
KiwiI wish you all the best. You “sound” like you are doing well.
Robert Bou-Hamdan
Mortgage Adviser0414 347 771
[email protected]
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdRob, I don’t understand your question!
When you do a lease option, you buy a property and then sell an option to a tenant. There is no need for an agent to call you.
They would make their usual commisison on the sale of the property (ie when you buy it). They may see you advertising a rent to buy situation and contact you, hoping you could be talked into selling through their agency. But other than that I can’t see why they would call at all.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I am talking about Agents calling you to inform you of new properties on the market. They will never call!
Why would they want to wait for years to get a commission? Doesn’t the agreement expire in 3 months anyway leaving them helpless if there is not a signed sales contract as would occur with a lease option until the option is exercised?
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdRob, you must be talking form the LO purchasers point of view?? If you are selling lease options, you will still be buying properties, so they will still get their commisison.
If you are buying lease options (ie you would be the tenant in a LO arrangement) then they would have no point in ringing you, just like they would have no point in ringing tenants.
If you are just talking plain options, then the agents would not be so keen on assisting you in buying an option, unless they are getting a commisison.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Sorry Terry,
I am talking from a buyer’s point of view. I am trying to include taking control of properties on Lease Options in my property investing strategies so I can organise something during the ‘lease’ period and then exercise the option when I have a satisfactory profitable move in place.
I have already bought two properties on a wrap for investment.
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
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