Posted by V. Crisp on September 05, 2003 at 20:24:50:
During the past few months, I have read extensively regarding note brokering in order to learn about the process. Since I have not yet begun and have no experience, I have some questions regarding the brokering transaction.
This is the basic (simplistic) process from a broker's perspective as I understand it:
1. I locate a seller.
2. I screen the seller's note.
3. I gather and submit the note info to a potential buyer.
4. The buyer gives me a quote.
5. I quote the seller (minus my fee).
6. Seller agrees and transaction closes.The following are the questions that I have.
After I screen a seller's note, is there a written contract that I should have the seller sign at that time whereby the seller agrees that I (the broker) am allowed to offer their note for sale to a buyer? That is, when and how do I have a note that could be described as "under contract"?
As a broker, is it necessary that I actually purchase the seller's note and simultaneously sell the note to a buyer or will there just be one transaction where the seller signs a contract directly with the buyer and I get my commission from the closing?
Your insights and experiences are appreciated.
thanks,
V. Crisp