The American Education Institute

In some states you now have what are known as “transaction brokers,” which are real estate professionals who represent neither the seller or the buyer.  They merely act as go-betweens, in effect, or as facilitators to help make the deal go through.  One of the first states to recognize that brokers can act in a kind of  “new” role as facilitators only is California.  Currently, many other states recognize transaction brokers as well.  Be assured, however, that if a broker is acting in this capacity only, that person is legally required to disclose this in writing to both the seller and the buyer.

Sometimes, in many jurisdictions, a policy of the local real estate board or even state law seemingly prevents duly licensed brokers from writing a contract for purchase on any blank form that isn’t designated specifically for that use by those brokers–even though the 100% Financing when Buying Real Estate! contract form is perfectly legal in all 50 states.  If, for example, a licensed broker tells you that the 100% Financing contract can’t be used because it’s not on an “approved” form, you may still be able to get around the problem.  Simply prepare your offer to purchase yourself, using as much of the 100% Financing contract language as pertains to the situation, and then courteously remind the broker that it’s all right for you to use your own form because you prepared it and you are not a licensed real estate broker.  If that state-licensed broker still doesn’t allow you to submit your own contract document, you can then use whatever format he or she requires you to use, but modified in any way you see fit with language taken from the 100% Financing When Buying Real Estate1 contract form.  This is legal throughout the United States.

Don’t worry, there is help!  In order to assist you in finding brokers and agents knowledgeable in creative financing techniques, you should know that quite a few organizations exist whose members already understand these matters, or they have received specialized training, or else they’ve invested in real estate creatively themselves.  For example, you can consider any member of the National Association of Realtors whose name carries the designation, C.C.I.M. (Certified Commercial Investment Member) for the Realtor’s National Marketing Institute to be one such indication that he or she has been trained in and accepts the various techniques for financing real estate creatively.  You should know that such professionals have taken the required courses and also demonstrated their competence and expertise in the making of real estate investments.  You can easily find a listing of these Realtors with the C.C.I.M. designation on the website of the National Association of Realtors at the following address on the World Wide Web:  http:www.ccim.com.

Another resource for you is the Society of Exchange Counselors, which is a nationwide group whose members are very competent in real estate exchanges and other creative financing techniques.  You won’t be able to obtain a members’ directory, but you can still find very helpful local brokers who are also exchange counselors.

Dr. Eric T. Martin / 100% Financing When Buying Real Estate / 4-25-09