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  • Smitty October 16, 2010 at 3:23am
    Yes it's legal if there is full disclosure. I have an investor that I work with and I present most listings I have to them first to see if it's a property they are interested in. I personally love it. They take most of the work out of it for me. I've seen other agents frown upon it, but my bet is they haven't worked with an experienced investor. You do have to find a good one and ask questions, such as, what is their exit strategy if anything goes wrong?

    I literally just closed one yesterday. It was a double closing on a property the investor negotiated for 7 months. The homeowners were PSYCHED because they got extra time in the home. I got the listing 3 weeks from foreclosure and the investor had it under contract within 4 days, got the auction stopped and negotiated. The end buyers loved it because the investor prices the home about 10% under FMV and they get a decent deal.

    Most investors in my area are legit, but MAKE SURE you're dealing with a company that discloses!!! If they disclose you should be all set. I got two commissions and sales yesterday. GREAT GREAT way to do it if you find the RIGHT investor!!!!
    Good luck
  • Steve Early October 16, 2010 at 2:29am
    Hi Elva:

    I agree with Jeff, and the operative word is DISCLOSURE. If you are going to do these, the one thing that can land you in big trouble is failure to ensure that full disclosure is missing from any aspect of the transaction.

    Even though they are potentially legal, I get a creepy feeling about them, but that's just me.
  • Jeff Payne October 15, 2010 at 3:07am
    Are you talking about option contracts? Investor places an option contract on property, short sale gets negotiated and you find a buyer for a higher price and investor makes the difference? A is seller, B is investor, C is end user? If so, yes it is legal if it is FULLY disclosed. Email me, I would love to tell you my experience with this type of transaction, jeff.payne@kw.com
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