Spotting Illegal?!?

It may be illegal to charge a fee for finding properties in certain states, if you are not a registered RE agent. Just ring the Dept of Fair Trading in your state to find out.

Terryw
Discover Home Loans
North Sydney
[email protected]

sibo

let us know what you are told in your state.

regards westan

I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]

The info I found out was much the same as Steve said.So long as you are not doing the job of a RE agent then you are not breaking any rules.You can even get gifts from RE agents for refering a bit of business their way.You can get a win win win situation here
Russ.

So many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.0438 659 411

flipping a property to a client is not ‘being a real estate agent’. It’s passing on a deal from one investor to another using the ‘and or nominee’ to assign the property at settlement (i.e. when the conveyance of title passes to the new owner.) In between the time when the flip has occurred and before settlement, there is an agreement between the bird dog and the client. This is where the lawyer comes in and it is very necessary for a potential bird dog to totally know inside out what their position is and what they are and aren’t liable for in a worst case scenario. Get documents and agreements drawn up and signed to protect both parties. the client so they feel secure that the ‘deal is theirs’ and the bird dog so their responsibility has passed to the client who effectively steps into the deal in their place.

At what point the agent and vendor is informed that the property has been flipped is also worth discussing first with your solicitor and then with your client.

Agents don’t seem to mind, (so far so good – ) a sale is a sale, I guess until it falls over. The decision of falling over or going ahead now passes to the client. It’s their money and their choice to go unconditional, pull out, or try to renegotiate as they see fit, just as I would if I did DD on a property and discovered defects with the builder’s report not apparent to someone not a qualified building inspector, no matter how experienced.

As a bird-dog I have been staying in the loop after flipping, making sure all is flowing smoothly between client, solicitor, agent, due diligence people, etc. Disclaimer: define ‘smoothly’!!!!

hey bear, I’m only dealing with NZ property contracts so far.

“You can even get gifts from RE agents for refering a bit of business their way.”

re the above, I am quite certain you are right! However on our initial mail-out to clients, we promised (among other things) that we are not getting kickbacks from agents, or brokers we recommend, but we reserve the right to fully schmooze them and take them out to lunch! We also promise never to knowingly sell clients rubbish, and that we don’t have any personal connection to any vendor of any property we are bird-dogging.

However non-monetary gifts, such as – after 4 people had bought properties from an agent I have also purchased from – ‘Thanks for the referral. ‘I owe you’! There is a property we have just listed which is not on the market yet but will be next week. 20K, excellent condition, ex-housing commission (well maintained) rents for 100 per week.’

That kinda thing is a win-win ‘good karma’ situation which i feel good about accepting. Money kickbacks to me feels weird kinda like bakshish in Egypt, if anyone’s ever been there.
Also leads to conflict of interest I feel.

cheers-
Mini