BiggerPockets

Wholesalers and RE agents are essentially doing the same job. Both are connecting buyers and sellers and taking a cut of the deal. The mechanics are different, but that's at least partly driven by the need for wholesalers to avoid being an "unlicensed broker". So, many agents will see you as direct competition. Some will tell you what you're doing is unlicensed brokering and its illegal.

I have done about 90% of my deals, about 40 now, through one Realtor and she loves me and wholesaling. You just have to find the right one who is hungry and willing to work with you. You make the Realtor part of your team and take care of them. If you have done deals with other Realtor's successfully , make sure the new Realtor is aware of that. They just might not want to work with a newbie. There is nothing shady, no murky waters, or anything wrong with assigning contracts, they are 1000% perfectly legal. I am studying for my RE License now and assigning contracts are mentioned often in the course. Although assigning bank owned is a little trickier and I'm assuming you are looking at actually doing double closes.

Anyway, Jon, as much as I read a lot of your comments and learn from some of the things you post I have to disagree with you at least in my case. Actually I'm a little offended and I know you didn't mean it and I won't take it personally. :wink:

I put together an entire package for my buyers. I get a contractor with a rehab estimate, I set up closing date with the title company and arrange a property manager to take over right after settlement. We will even manage the rehab by keeping tabs and taking pictures if need be. Not to mention the fact that we take all risk of the contract, deposit and reputation if we can't find a buyer.

Sorry, just wanted to vent a little. Thanks.....All is good..... :D

Many realtors who work directly with banks as REO agents, get a flat commission. It doesn't matter of the house sells for a dollar or a hundreds of thousands of them. The agent gets the same per unit. Those realtor who understand the role of wholesalers should embrace them, because they can moves those REOs fast and the agents get their fee faster and with less work.

Originally posted by Jorge Caicedo

Interesting...none of my buyers would TOUCH a prop. if a Realtor was involved

WHY ????? What does a Realtor have to do with a good deal. You still make an offer for the price that YOU want to get. A deal is a is a deal is a deal etc.....no matter where or from who you get it. If the numbers work, they work.......PERIOD ........

You are potentially missing out on hundreds if not thousands of deals out there. Everything is still negotiable.

Originally posted by Jorge Caicedo

Jon, you don't know NOLA RE investors..lol

Ok....your right .......you win......... :wink:

Interesting topics going on here. Can anyone answer this for me.. I was talking to a realtor yesterday and I simply asked him about wholesaling and assignments and what not because he has a few investors he works with that does this, and he got onto the topic that you have to be very careful with wholesaling there is a lot of investors that go into a very grey area to where it is illegal and they either don't understand that what they are doing wrong or they do they just don't care because they are making a lot of money. He said the investor could get in serious trouble and the realtor could loose their license.
I didn't really go into much detail or question because I didn't want to sound like a complete idiot, but I don't understand what wholesalers can do so wrong that could make it potentially illegal or have their realtor loose their license, etc.
I tend to stick to straight assignment of contract but also do the double closings. What can go on or happen with doing these deals that make it illegal?
I'm hoping maybe some of you old timer investors can chime in and maybe know what this realtor is taking about
Thanks for all your help and comments! Greatly appreciated!.

Jon, i dont understand if you put a clause in the contract you can default the contract legaly what is the problem?