Hi
This is my first post on this site so hello one and all.
What I want is some objective/critical feedback on a couple of strategies that I want to put in place in a new real estate business that I am about to start.
However before I do that just a little of my background so that you have an idea of where I am at - it wont take long - years ago worked in town planning (UK) then on to real estate sales where I ended up as a master franchisee of about 20 offices in Adelaide,left that around 1999 and concentrated on investing in real estate and now have 17 properties with pretty good equity.
So thats the history. What I want to do now is get back into real estate sales (for some strange reason I actually enjoy it) but I want to offer something a little different to my vendors when it comes to their selling costs (commission).
My first idea is why not let them pay their selling fees when it suits them ie rather than lose X% at settlement keep that and pay say a monthly amount over 60 months. Benefit to them more cash at settlement benefit to me cash flow rather than commission spikes.
Second idea a full commission rebate ie pay commission by way of a loan to the company at settlement and receive an annual loan repayment rebate over 5 years (low at first ballon at the end) Benefit to me being possibility of more listings plus lump sums of cash to further reduce loans on ips with the belief that by the time the 'loan' is repaid the ips have increased equity. Benefit to the vendor they get their money back.
I KNOW that these strategy outlines are very simplistic and I can flesh them out some more if you want but it will take far too long on this post. Also these strategies form part of a full and professional service where the option of a more conventional approach to fees will be available.
The main reason I am considering these strategies is because I can and I want to offer a niche service that is genuinely different, where there is something in it for everyone, after all its the same old stuff out there with few genuine attempts to benefit the mum and dad seller or investor for that matter.
My concerns are that the public wont 'get it' with a danger of if its too good to be true it probably is! Also with strategy 2 is it going to be ok to accept a loan as payment.
Anyhow this is going on a bit. Over to you rip it apart let me know what you think. Ta
This is my first post on this site so hello one and all.
What I want is some objective/critical feedback on a couple of strategies that I want to put in place in a new real estate business that I am about to start.
However before I do that just a little of my background so that you have an idea of where I am at - it wont take long - years ago worked in town planning (UK) then on to real estate sales where I ended up as a master franchisee of about 20 offices in Adelaide,left that around 1999 and concentrated on investing in real estate and now have 17 properties with pretty good equity.
So thats the history. What I want to do now is get back into real estate sales (for some strange reason I actually enjoy it) but I want to offer something a little different to my vendors when it comes to their selling costs (commission).
My first idea is why not let them pay their selling fees when it suits them ie rather than lose X% at settlement keep that and pay say a monthly amount over 60 months. Benefit to them more cash at settlement benefit to me cash flow rather than commission spikes.
Second idea a full commission rebate ie pay commission by way of a loan to the company at settlement and receive an annual loan repayment rebate over 5 years (low at first ballon at the end) Benefit to me being possibility of more listings plus lump sums of cash to further reduce loans on ips with the belief that by the time the 'loan' is repaid the ips have increased equity. Benefit to the vendor they get their money back.
I KNOW that these strategy outlines are very simplistic and I can flesh them out some more if you want but it will take far too long on this post. Also these strategies form part of a full and professional service where the option of a more conventional approach to fees will be available.
The main reason I am considering these strategies is because I can and I want to offer a niche service that is genuinely different, where there is something in it for everyone, after all its the same old stuff out there with few genuine attempts to benefit the mum and dad seller or investor for that matter.
My concerns are that the public wont 'get it' with a danger of if its too good to be true it probably is! Also with strategy 2 is it going to be ok to accept a loan as payment.
Anyhow this is going on a bit. Over to you rip it apart let me know what you think. Ta