Posts Tagged ‘lending’

This blogpost asks an intriguing question:

Have you ever been asked by a SELLER to pay for repairs or improvements to THIER property prior to it being listed for sale? If so, have you paid for them? If so, have you always gotten paid back, even if the property did not sell?

My mentor in this business loaned clients money. He was burned sometimes, but overall it worked. It separated him from other agents.

I have loaned clients money as well, and I only did so when there was sufficient equity for me to be repaid at closing. Once, I paid a client’s mortgage for 10 months until the house sold. I was paid back when the sale closed. I certainly didn’t expect to pay for so long, but the sub prime crisis hit right after I listed the home and that locality was severely affected.

In this market, we run across sellers in bad shape. Dozens of my clients are facing foreclosure. Some have equity; most don’t. If the circumstances are right, I would do it again. Sometimes you have to do what most other agents cannot or will not do to separate yourself. I view it as putting my money where my mouth is.

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