For Realtors

Why should you sell your client's property to us?

One of the first things on any real agent's mind is: how serious is this buyer?

Our company motto is: "time is your life's most valuable asset". One of our core values is a strong commitment to respect yours and your client's time. Our company takes great pride in being able to close transactions in as little as 7 days. 

We understand people's circumstances are very diverse, though. Some sellers have all the time in the world to wait until they get the price they want. Others do not have the same fortune. They need the house closed in 30 days or less. These are the folks most likely to take full advantage of what we offer.

Are you going to offend my client with a low ball offer?

We are all too familiar with the wheeler dealer type that makes only low ball offers and have no intention of closing on the deal. All he wants is to do is lock the property up in a contract and keep it out of the market. In the meantime, he acts like a greedy middle man trying to find a real buyer for a higher amount than the contracted price. This individual is not using the inspection period as part of his due diligence process, he is using that as his marketing time. Most of them don't even hire a home inspector. Therefore, if he fails to find his buyer, he will just walk away from the transaction, leaving you and your client empty handed. In essence, he is stealing your commission and wasting your time. 

You and your client may rest assured that once we have a signed purchase and sales contract, we have 100% intention on closing. Should we ever change our goals for the property and try to sell it fast for a quick profit, you will be the first to know. In addition, we will also pay you a commission on the sale of the second transaction. So you get 2 commissions instead of one.

Why should my client consider a seller finance offer?

Here are a few advantages to all parties involved in the contract when the seller agrees to owner finance:

1. The transaction will close much faster. One of the main reasons why real estate transactions can take between 45-90 days is that the mortgage lender takes a long time to complete their due diligence. 
2. No financial contingency, means that we accept the property as is and where it is. If a mortgage lender is involved they also have a say in the property condition. It is not uncommon for a lender to come up with some last minute contingency, such as repairs,  to be satisfied before the deal is funded.
3. The seller will net more in the transaction. Mortgage lenders charge appraisal fees, points, lender's title fees, prepaids, and all sorts of junk fees. This is an additional cost to the transaction which ultimately results in a lower net amount to the seller.

What if you default on the loan?

Most of the property we buy are in need of repairs, some maybe just cosmetic such as carpet and paint, others require big ticket items such as new roof, rewiring etc. The first thing we do is invest in improving the asset. If we were to default on the loan the seller would receive the property in better condition than when it was sold. And we would lose all the money invested.

In addition, because we are buying a piece of real estate as an investment, we would sign into our land trust agreement that if we are 30 days late, ownership is given back to the seller, no foreclosure needed, the seller gets the property back fair and square plus all the improvements.

What is a land trust?

In the paragraph above we briefly mention land trust. A Florida Land Trust is a legal way of acquiring ownership of a piece of real estate. The Florida land trust statute is Section 689.071 of the Florida Statutes. A land trust is an arrangement between two parties, the trustee and the beneficiary. The trustee holds both legal and equitable title of a property for the benefit of the beneficiary. 

Maybe the most notorious use of land trust happened in the 1960's. When the Disney brothers were looking for a location to house the most magical place on Earth, they wanted to keep the ownership private and avoid paying inflated prices. They used large contiguous tracts of land. Today this place is called Walt Disney World Resort.

There are several benefits to selling property into a land trust, chief among them is privacy. However, there are other benefits to both parties:

1. Lower closing costs. Closing into a land trust represents a benefit to the seller because we always offer to pay for the seller's title insurance, documentary stamps on the deed. These are customarily charged to the seller. In addition, we will bear all the cost of creating the land trust. All this ultimately results in a higher net to the seller.
2. Ease of foreclosure. Because the property is held in a land trust the seller may keep an equitable interest in the property. In the event that the buyer defaults on the loan, all buyer equitable interests are deeded back to the seller.
3. Keeping liens and judgements off the property. We live in a litigious society and anybody can be sued for anything. Because ownership of property is kept in privacy, most liens and judgements against the owner do not attach to the property. 
4. Avoiding probate. Sellers that agree to receive a future stream of payments, may include at no cost contingent beneficiaries. In other words, if they want to pass the future payments to their heirs they can do it very easily without the need of probate.
5. Saving in title insurance premiums. If we pay lower closing costs, there is more money left to everyone else, that includes you and your client.