Overview

 

The Cash Offer gives sellers an upfront cash payout and a chance to benefit from the resale of their property. It includes two transactions: the initial cash purchase and the resale.

• Sellers get fast cash upfront for immediate needs.
• They can still profit from the resale’s upside.
• Agents earn 4% total commission across both transactions.

This offer combines the speed of cash with the value of resale.

Transaction 1: The Initial Purchase

• The buyer/investor buys the property for cash.

• The seller receives their first payout, which is the cash offer minus:

  • A 6% program fee (paid to the buyer).

  • A 5.5% resale fee, which includes:

    • 4% commission for the agent (you earn 2% upfront, then 2% on the resale).

    • 1.5% resale closing costs.

  • A reserve held back to cover risks during the resale process.

This payout allows the seller to:

• Move out of the property. 

• Pay off their mortgage (if any).

• Make a down payment on their next home.

Agent earnings: You earn 2% commission on the total purchase price.

Transaction 2: The Resale

• The buyer hires you as the listing agent to resell the property on the open market.

• The seller receives their second payout, which includes:

  • The reserve amount held during the first transaction.

  • Any additional profit if the property sells for more than the original cash offer.

Agent earnings: You earn another 2% commission on the resale price.

Example Workflow

1. Initial Purchase:

   • Cash+ offer: $1,000,000.

   • Seller's first payout: $720,000 after fees and the reserve are deducted.

2. Resale:

   • The property is sold for $1,000,000.

   • Seller's second payout: $165,000 reserve (or more if the resale price is higher).

3. Agent Earnings:

   • 2% commission on the initial purchase ($20,000).

   • 2% commission on the resale ($20,000).