Today is my first entry. I should had started this two weeks ago when I finally finished Dean's book "Be a Real Estate Millionaire" but better late than never... Anyway, right now I'm working on my first deal - or I should say deals. I have one seller who is selling two properties to a buyer that I found on Craigslist. The buyer is willing to pay a finder's fee at the closing of the transaction. To start off, I'm charging 2.5% as a finder's fee. So I get to the point where the buyer wants to do an inspection on the properties. So I tried to lock in the deal with the seller before he meets the buyer at the inspection, but the seller says he don't want to do an assignment clause contract. I told him I need that to protect myself from the buyer cutting me out of the deal. So the seller tells me he would pay me 4% commission if the buyer pays full asking price! The seller also suggests I draft a non-circumvent agreement with the buyer so s/he can't cut me out of the deal. I wanted to know if that's a good idea. I know the property won't be locked in but the seller doesn't want to deal with that type of contract. So in the meantime I drafted a Non-Circumvent Agreement for the buyer and a Finder's Fee Agreement for the seller. I can't wait for tomorrow to see how both parties respond. I hope I covered myself with my draft... I can't let the fear get in the way. Let's see what happens tomorrow.
Acquiring knowledge without application is like locking yourself in a room with a fortune.