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  • Independent Contractor, Confidentiality and Non-Compete Agreement

  • An Agreement for       REAL ESTATE ASSISTANT Services

     

    BETWEEN:        406 Properties LLC, hereinafter referred to as the Company

     

                                          represented by Ryan Garrison, as agent

     

                                                                             - and -

     

                                {firstName} {lastName} , hereinafter referred to as the Contractor

     

    The Company and the Contractor agree as follows:

     

    SERVICES TO BE PROVIDED
     

    1)   Both Parties agree that the Contractor shall, commencing on {todaysDate},  provide the services of a REAL ESTATE ASSISTANT, as delineated and described by the Company, on the terms and conditions set out in this Agreement and in a professional manner satisfactory to the Company.  These services are described, but not limited to those set out in Schedule "A" (called the "Services").

    2)   The Contractor shall comply with all reasonable directions and requests of the Company.

     

    INDEPENDENT CONTRACTOR

     

    3)   The Contractor will be an independent Contractor and not the employee or agent of the Company.

    4)   The Contractor will not, in any manner whatsoever commit or purport to commit the Company to the payment of any money to any person, firm or corporation.

    5)   The Company, may, from time to time, give such instructions to the Contractor as it considers necessary in connection with the provision of the Services but the Contractor will not be subject to the control of the Company with respect to the manner in which such instructions are carried out.

     

    REPORTS

     

    6)    The Contractor will permit the Company at all reasonable times to inspect, examine, review and copy any and all findings, data, specifications, drawings, working papers, reports, documents, and material, both in paper and electronic form, whether complete or otherwise (herein collectively called the "Material") that have been produced, received or acquired by or provided by the Company to the Contractor as a result of this Agreement.

     

    OWNERSHIP  AND  CONFIDENTIALITY

     

    7)     The Material produced, received or acquired by, or provided by the Company to the Contractor as a result of this Agreement, and any equipment, machinery or other property provided by the Company to the Contractor as a result of this Agreement will:

         a)      be the exclusive property of the Company, and

         b)      forthwith be delivered by the Contractor to the Company on the Company giving written notice to the Contractor requesting delivery of the same, whether such notice is given before, upon or after the expiration or sooner termination of this Agreement.

     

    8)   The copyright in this Material will belong exclusively to the Company

    9)   While this Agreement is in effect, and at all times thereafter, the Contractor:

            (a)      shall treat as confidential all information, data, reports, documents and materials acquired or to which access has been given in the course of the performance of this Agreement;

            (b)      shall comply with any rules or directions made or given by the Company with respect to safeguarding the confidentiality of such information, data, documents or materials.

            (c)     will keep strictly confidential any and all personal information of the officers or representatives of the Company.

            (d)     shall not use, publish or disclose any reports, information, data, research, documents, photographs or materials discovered or produced by the Contractor in the performance of this Agreement without first obtaining written permission from the Company

    10)    All reports, information, data, research, documents, photographs and materials discovered or produced by the Contractor, or any employees or agents of the Contractor, in the performance of this Agreement, and all copyright therein, shall be the exclusive property of the Company, and shall be delivered without cost to the Company upon request.

     

    ASSIGNMENT AND SUB-CONTRACTING

     

    11)    The Contractor will not without the prior written consent of the Company:

             (a)  Assign, either directly or indirectly, the Agreement or any right of the Contractor under this Agreement, or sub-contract any obligation of the Contractor under this Agreement

     

    CONFLICT OF INTEREST

     

    12)    The Contractor will not, during the Term, perform a service for or provide advice to any person, firm or corporation where the performance for the service or the provision of the advice may or does, in the reasonable opinion of the Company give rise to a conflict of interest between the obligations of the Contractor to the Company under this Agreement and the obligations of the Contractor to such other person, firm or corporation.

     
    INDEMNIFICATION BY THE CONTRACTOR
     

    13)               The Contractor shall use due care in the performance of this Agreement’s obligations to ensure that no person is injured, no property is damaged or lost and no rights are infringed.

    14)               The Contractor shall be solely responsible for:

         (a)     any injury to persons (including death), damage or loss to property or infringement of rights caused by, or related to, the performance of this Agreement or the breach of any term or condition of this Agreement by the Contractor, or the employees or agents of the Contractor, and

         (b)   any omission or wrongful or negligent act of the Contractor, or of the employees or agents of the Contractor.

         (c)   The Contractor will be held financially responsible for any damage and/or loss resulting to the property of the Company or its members caused by gross negligence or incompetence.

         (d)   The Contractor shall save harmless and indemnify the Company, its employees and agents from and against all claims, liabilities and demands with respect to clauses (a) and (b) and (c).

     
    TERMINATION
     

    15)          Either party may terminate this Agreement at any time by giving 10 days notice in writing to the other party.

    16)          In addition to its rights under subsection (1), and without restricting any other remedies available, the Company may, at its sole option, immediately terminate this Agreement in writing if

         (a)      in the opinion of the Company, the Services provided by the Contractor are unsatisfactory, inadequate, or are improperly performed; or

         (b)      in the opinion of the Company, the Contractor has failed to comply with any term or condition of this Agreement.

    17)       Upon termination of this Agreement, the Contractor shall cease to perform any further work, and shall deliver to the Company any finished work which has not been delivered and accepted prior to termination, together with any materials and work in progress relating to this Agreement.  The Company shall be under no obligation to the Contractor other than to pay, upon receipt of an invoice and satisfactory supporting documentation, such compensation as, in the opinion of the Company, the Contractor may be entitled to receive under this Agreement for work completed to the satisfaction of   

    the Company up to the date of termination.

    18)      Upon termination of this Agreement, the Contractor shall not work as a direct competitor, or for a direct competitor, in the real estate industry for a period of two (2) years without written consent of Company. 

     
    GENERAL PROVISIONS
     

    19)       This Agreement shall be binding upon the executors, administrators, heirs, successors and any permitted assigns of the Contractor.

    20)        Time shall be of the essence of this Agreement.

    21)        This document and the attached Schedule “A” contain the entire Agreement between the parties.  There are no undertakings, representations, or promises, expressed or implied, other than those contained in this Agreement.

    22)        No amendment or change to, or modification of, this Agreement shall be valid unless it is in writing and signed by both parties.

    23)        This Agreement will be governed by, and construed in accordance with the laws of  Washington.

     

    SERVICES

     

    The Services to be provided by the Contractor shall generally include but not be limited to:   

    1.  Handle all incoming calls.  Take messages.

    2.  Assemble and mail all marketing letters.

    3.  Shop for vendors and supplies.  Report back.

    4.  Help distribute marketing materials.

    5.  Handle incoming calls from Seller Prospects.  Take info.  Pre-screen.

    6.  Pull tax info and comps for pre-screened prospects.

    7.  Clean up signed paperwork from deals.

    8.  Fax/email sales contracts to Title Company (or attorney) to get title reports.

    9.  Check over title reports when they are faxed back. 

    10.    Put together short sale packages.  Get them reviewed.                                 

    11.  Send out short sale packages.         

    12.  Pass repair lists on to Sellers.  Get date for completion, or get discount. 

    13.  Order carpet, paint, and/or any other work to be done before re-sale.

    14.  Follow up with contractors on work.  Make payments with approval.

    15.  When work is done pick up staging kits.  Stage houses.

    16.  Handle incoming calls from Buyer Prospects.  Take info.  Pre-screen.

    17.  Move staging kits out of sold properties to next house or storage.

    18.  Maintain accounting spreadsheet for business and individual properties.

    19.  Send and receive all monthly payments.  Handle business accounts.

    20.  Provide ongoing customer service to all Sellers and Tenant-Buyers.

     

    This Schedule has been executed by the Company and by the Contractor effective {todaysDate}.                                   

                      

  • Compensation Details and Definitions

     

    “Pretty House” Deals

    DEFINITION

    These are primarily For Sale By Owner (FSBO) deals, but could be from other sources as well. They are properties that we acquire with either seller financing or in a lease option.  We then place the property with a tenant-buyer in a Lease Option with $10,000-$50,000 Option Fee/Down Payment/Deposit. 

             

    -- 10% of non-refundable deposit on First Deal Contractor helps Acquire and Place for Company.

     

    --15% of non-refundable deposit on deals 2 through 5 that tenant-buyer places with Company.

     

    --25% of non-refundable deposit on deals 6+ that Contractor Acquires and Places with Tenant Buyer for Company.

     

    --After every 6th Pretty House deal Contractor does with Company, Contractor may keep one Pretty House deal for his or her self – even if deal was sourced from Company’s advertising.

     

    --If Contractor only assists with disposition/tenant-buyer placement or acquisition – not both – then Contractor will be entitled to only one half of marketing fee, and deal will count as one half of deal towards

    The Company’s goal is for the Contractor to continue building personal real estate portfolio over time while helping to grow the company.

    Goal: 3 Pretty House Deals per Month

    Quick-Turn / Wholesale / “Ugly House” Deals

    DEFINITION

    Deal may not be acquired with seller financing. Seller must receive cash. Company will not be taking title to Property, but will assign a Purchase and Sale agreement to the end buyer for a fee paid at closing. 

    --10% of 1st contract assignment fee generated

    --15% of 2nd through 5th contract assignment fee generated

    --20% of every assignment fee generated thereafter

    Rehab/Flip Deals

    DEFINITION

    Company purchases Property with Lender or Seller Financing. Company performs repairs on home with intention to sell to retail end buyer. Upon completion of rehab, home is placed on market. Net profit is calculated by Sales Price less Acquisition costs, Repair Costs, Holding Costs including Taxes, Loan origination fees, Insurance and Loan payments, Concessions, Commissions, Excise taxes, and Closing Costs.

    --10% of net profit of 1st Rehab/Flip

    --15% of net profit on 2nd through 5th Rehab/Flip

    --20% of net profit on every Rehab/Flip thereafter

    Work for Equity Deals 

    DEFINITION

    Property is an “Ugly House” that we acquire with seller financing and hold. We Lease Option the property to a tenant buyer in the property that is qualified to repair the property.

    --20% of non-refundable deposit.

    List Home on Market   

    DEFINITION

    Not every deal makes sense to acquire off-market. It is often better for the Seller to list the home on the market. Ryan Garrison is a Licensed Agent in the State of Washington. If Ryan Garrison, dba Flathead Real Estate, Inc. is able to capture the listing and successfully sell the home for their client, you will be paid a marketing fee on closing.

    --10% of Agent’s Net Commission or Referral Fee

    Short Sale Deals   

    DEFINITION

    If the seller owes more money on the home than they would receive from the purchase of the home, then the home sale must be negotiated with the lienholders on the property. If we are able to negotiate a sale and close on the property, you would be paid a marketing fee on close.

    -- 1% of sales price for recorded deed           

    Option Luxury Deals

    DEFINITION

    For High Dollar homes, we may decide to obtain an option to purchase rather than close on the property and sell through another method. If we obtain an option and sell the option for a fee, you would be paid a marketing fee on the profit.

    --10% of net profit

    Back Window Marketing

    DEFINITION

    Contractor gets assigned a phone number and extension unique to Contractor. Any lead generated off that number is tracked and any closed deal generated from Contractor’s phone number will pay Contractor $500 as a marketing fee. Contractor may choose to advertise unique phone number and extension on other mediums, such as yard signs, online classifieds, or social media. *Separate Back Window Marketing Agreement Applies.

    Back Window Marketing Affiliate Program                                                                

    DEFINITION

    Any Contractor enrolled in Back Window Marketing Program may refer other people to the program. If the referred party notates Contractor as the person that influenced them to sign up, the Contractor shall receive $250 for any deal generated off of the referred Contractor’s phone number as an affiliate marketing fee, paid after closing. *Separate Affiliate Agreement Applies.

    Deal Finder / Property Scout / Property Finder / Bird Dog

    DEFINITION

    Contractor tags properties in Company’s Profit Drive mobile app and is paid a marketing fee if Company decides to purchase property entered by Contractor. Contractor is to enter properties with obvious disrepair or distress. For Sale By Owner yard signs may also be entered into system. Contractor may only enter properties they have physically seen and/or know specific information about (i.e. pending divorce, foreclosure, probate, inheritance). Properties may not be listed on MLS or bank-owned. Properties may not be entered into Profit Drive off of a data provider list or Zillow. If more than one contractor enters a property, fee will be paid to first contractor that properly loads property into system and takes a clear picture of the property. *Separate Deal Finder Agreement Applies.

    --Contractor will receive $1000 marketing fee for any lead that results in a closing.

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