BiggerPockets

No way, not at all......Most of my deals have come from the MLS and through a Realtor. I know it goes against some wholesaler's thinking but you still throw an offer out that will make your numbers work and you may get 1 or 2 out of 20 or 30 offers. Don't think that just because it is listed through a Realtor that they are not motivated. There are , especially now, an abundant supply of deals out there on the MLS.

You will need a Realtor to show the property. Just make sure that you have some buyers lined up or that it is a home run deal that you KNOW that you can sell. If your Realtor is hesitant to do a wholesale (and/or assigns) with you then find a new one that will. Just be warned that if you do not sell the deal and it falls through without a buyer, your Realtor will probably get a very bad taste and not want to tie any more up with you, it is their reputation as well as yours on the line.

A few suggestions......

- try to get as long a closing date as possible so you can market your property, 60 days is about max.

- Realtor's will usually want a higher deposit at least $1000. to show your serious, you can try to get that down as well, maybe $200 - 500.

- If you do sell the property, your Realtor will love you, so take care of them, Gift cards to their favorite Restaurant for example. They will have to show the property to your prospective buyers, basically having to sell it again and doing more work than usual.

Just a few quick little notes......hope that helps....

Good Luck......

Sweet, If the house sells without the Realtor then they don't get commission? Or is it a "contract" deal?

look at it like this most houses on the mls are listed with a realtor so right away thats 6% most the time then there is the wholesale fee thats a lota middle men so to say but remember some times there is people that just pay to have there house on the mls around 300 now you have something but the trick is getting the access to the mls ?

Originally posted by G Simpson

Will,

good comments...in general, do you get yours on courthouse steps, directly from the bank or from a wholesaler

Thank you G, don't forget to vote for my comments! Locally here where I concentrate, I purchase from the bank using their listing agent, but get the properties under contract BEFORE they hit the MLS. That is the key for my entrance strategy. Most others go around and make 20 or 30 offers to get one accepted. While that is all fine and good, I find it is a larger waste of my time and that of my team members.

Good stuff Nationwide, thanks!

Approaching the listing agent can be a good idea. Sometimes the banks use a variable commission that means if the listing agent brings the buyer, the total commission is less.

IE: total commission is 4%, 1.5% to listing agent, 2.5% to buyers agent, if the listing agent brings the buyer the total commission is 3%. Still twice the money but not 6%! :wink:

Originally posted by nationwidepi

Mark is exactly right which is why it is so important to go direct to the listing agents for REO properties, you have a much better chance of getting the property as they get paid more and they like that.
Besides, having a buyer's agent find you REO properties will only be properties listed on the MLS which in many areas, puts you as an investor out of the game. (exept under extreme circumstances)

That's an excellent point Will. I use to think a buyers agent was the best route to go but your absolutely right about them only being able to pull from homes that are already listed... That is a definite disadvantage.

Do you try not to disclose to the Realtor that your wholesaling some of the REO's that you get? I've had some bad luck with realtors when I am up front about what we're doing, they seem to treat us like the competition after we disclose our intentions with a property.

I want to be honest and up front with everyone but I'm starting to think that stating the bare minimum might be a better option in the beginning. What are your thoughts?

Jeff