I would appreciate any info on the how to’s of spotting positive cash flow properties for someone else to buy and collecting a fee for this.
I read in the
“Time rich money poor” posting where someone had replied that genuine buyers wanting to pay a spotters fee were rare if not non existant, with most prospective buyers just wanting the information so that they may then bypass the spotter….I was wondering how legal it would be to tie up a deal with a deposit….then after making suitable arrangement regarding the spotters fee….withdrawing the deposit.
Any other ideas on appropriate ways to make these deals securely would be much appreciated.Hi Rajeev
For me its not a spotting fee but call it what you like it is very common in the commercial market.
First you need to setup an account with a solicitor or real estate the same as that the deposits go into for real estate purchases.
This is not releast until the property is exchanged the same with your commission. you just set it up that if the transaction does not occur the funds are still releast to you. a mandate letter will do this.
If you are looking at this as a business venture then spend a little money and set it up with a solicitor and he can manage it for you.
Its relatively easy.
This advice is general and is not financial advice I’m not allowed to give that.
This advice does come at a cost.
If you find sites zoned 2c or 3a raw you let me
know.here to help
Thanks for your advice grossrealisation, not too sure what 2c or 3a raw means, I’m guessing business and or residential zoning? Do you have a web site?
hi Rajeev
2c in most state will be a 1:1 fsr units development site.
3a is usually a 2:1 fsr commercial and residential unit site.
As for the web site I’m currently working on it but I have to be very carefull with how its organised 3/4 done but I have to run past my legals and asic before you see it.here to help
Hi Rajeev,
With the influx of Buyers Agents around Australian laws regulating procedures in purchasing property are changing all the time. be sure to check with asic and fair trading regarding what you can and cant do when trying to put these deals together.
There can be problems if you are seen to be manipulating the market for profit by making fake offers they you are going to pull out of for other buyers.
An easier way for what you are doing is to look at taking an option on the property to secure it for a period of time until you get a buyer, similar to the model a Sydney company uses to secure the properties they sell to their clients. The one negative in this scenario is that if you are unable to sell the property you may end up with an unhappy vendor which in turn creates unhappy agents and have you ever tried to get a good property out of an agent you inadvertantly made unhappy.
Whatever you do be honest, careful and always do something yourself and understand it before you recommend it to your clients.
Regards,
Mic
[email protected]
http://www.househunters.com.auAustralian House Hunters.
Specialising in finding your perfect investment property throughout Australia, NZ and the USA or your dream home in Newcastle and the Hunter Valley. To recieve our free weekly newsletter or assistance with anything investing, [email protected]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
