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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Newbie & Finder's Fee Posted by Troy on July 05, 2001 at 11:10 PM In Reply to: Re: Newbie & Finder's Fee posted by Ward-CA- on July 05, 2001 at 10:33 PM : : Ward, what is your opinion in regard to a newbie just finding deals and flipping them out to investors for a finder's fee ... rather than trying to rehab and retail the deal themselves? Thumbs up, or thumbs down? : =•=•=•=•=•=•=•=•=•=•=•= : Troy, in many states, you must have a real estate license as a perequisite to legally charging someone a finder’s fee. However, CA allows a non-licensee to collect a finder’s fee if the non-licensee does nothing more than introduce party A to party B. The non-licensee cannot participate in negotiating any terms whatsoever concerning the transaction. : However, in the instance of a foreclosure, it’s a requirement of Civil Code Section 1695 (see link below) that whoever represents the buyer in any capacity, must have a real estate license. : So why not create your own title holding trust with yourself as the trustor, trustee and beneficiary. Then go out and negotiate the deal for your own account, taking title as the trustee of your trust. Then sell your investor 100% of the beneficial interest in your trust. You remain the trustee until after escrow closes and then transfer in the new successor trustee designated by the investor/beneficiary. ============================= Thanks for the response. And great idea about the title holding trust. But, wouldn't I still need to fund the deal myself (which is what I was partially trying to avoid - along with rehabbing and retailing the property)? Another source mentions the possibility of doing the following for a finder's fee: "To receive a finder's fee, submit a California property purchase contract for an acceptable price. Then, assign your right to buy the property to the investor referred. The finder's fee is based on the possible profit in the deal and will be paid upon investor purchase. You take no risk and only make a small amount of the profit. This is a great place for novice, cash and credit poor subscribers to start with The Network." Based on the legalities you mentioned in your reply to my first post, is this feasible and/or legal? My main question, however, is, "Is this a good way for a newbie to start?" PS - You're grand-daughter is adorable, and please tell Eric "thanks again" for the lunch! Follow Ups: Re: Newbie & Finder's Fee Ward-CA- 8:06 PM, 07/07/01 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : : Ward, what is your opinion in regard to a newbie just finding deals and flipping them out to investors for a finder's fee ... rather than trying to rehab and retail the deal themselves? Thumbs up, or thumbs down? : : =•=•=•=•=•=•=•=•=•=•=•= : : Troy, in many states, you must have a real estate license as a perequisite to legally charging someone a finder’s fee. However, CA allows a non-licensee to collect a finder’s fee if the non-licensee does nothing more than introduce party A to party B. The non-licensee cannot participate in negotiating any terms whatsoever concerning the transaction. : : However, in the instance of a foreclosure, it’s a requirement of Civil Code Section 1695 (see link below) that whoever represents the buyer in any capacity, must have a real estate license. : : So why not create your own title holding trust with yourself as the trustor, trustee and beneficiary. Then go out and negotiate the deal for your own account, taking title as the trustee of your trust. Then sell your investor 100% of the beneficial interest in your trust. You remain the trustee until after escrow closes and then transfer in the new successor trustee designated by the investor/beneficiary. : ============================= : Thanks for the response. And great idea about the title holding trust. But, wouldn't I still need to fund the deal myself (which is what I was partially trying to avoid - along with rehabbing and retailing the property)? : Another source mentions the possibility of doing the following for a finder's fee: : "To receive a finder's fee, submit a California property purchase contract for an acceptable price. Then, assign your right to buy the property to the investor referred. The finder's fee is based on the possible profit in the deal and will be paid upon investor purchase. You take no risk and only make a small amount of the profit. This is a great place for novice, cash and credit poor subscribers to start with The Network." : Based on the legalities you mentioned in your reply to my first post, is this feasible and/or legal? : My main question, however, is, "Is this a good way for a newbie to start?" : PS - You're grand-daughter is adorable, and please tell Eric "thanks again" for the lunch! 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