Real Estate Wholesaling

How to Find (& Work With) Real Estate Agents As a Wholesaler

Expertise: Real Estate Wholesaling, Real Estate Marketing, Business Management, Personal Development, Flipping Houses
63 Articles Written
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I know a lot of people think it’s best to keep real estate agents out of their wholesaling businesses. However, agents can be key if you link with the right ones. If you are a newbie, I would recommend you focus on finding motivated sellers. But if you have done a few deals, this could be a great strategy to increase your wholesale fees.

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It’s easy to group a bunch of people together and say they are all bad — but I work with real estate agents in my wholesaling business who are investor-friendly, and they are GREAT. Finding the right ones will not be easy, but it’s totally worth it. By utilizing real estate agents, I make a extra $5-15k sometimes. And like us entrepreneurs, real estate agents do not work for free. I pay them their three percent. Sometimes I tell them to put their three percent on top, and other times I pay them out of my assignment fee. I notice when you do double closings, things go a lot smoother. If they are not familiar with assignments, I explain to them that it’s perfectly legal and I have a attorney we can use. It’s best to use your attorney even if you have to offer paying some or all of the buyer’s closing costs. There’s been times when their attorney won’t do assignments or do double closing.

Related: 3 Ways Wholesalers Can Protect Their Sellers (& Build Good Reputations!)

How to Find Real Estate Agents to Work With

So where do you find these real estate agents without listing on the MLS? One great place is your local real estate club or meet up. You want to ask them, "Do you work with cash buyers?" If they say no, then you can politely end the conversation and move on. If they say yes, get their phone number and email. Let them know you buy and sell houses at a deep discount. And that you will send over some properties for them to look at. Be sure to discuss the most important thing to the real estate agent, which is their compensation. Depending on your spread, let them know they can place their three percent on top of your asking price or you will pay them out of the deal. Just be sure to talk about compensation to let them know they won't be working for free. No one wants to work for free.

Another way is to network with a real estate agent and ask them to send you closed cash transactions in your city, zip code or area. Once you get that information, you can Google the selling agent to find their number. You can call the agent and say, "I see you have a buyer who purchased 123 Main St. I am actually selling the house at 456 Main St. Would your buyer be interested in that house as well? Also, could you put your three percent on top of the price?" Once they let you know their buyer is interested in subject property, you can tell them you have the offer to purchase contract and will do a double closing on this deal. If you are sending an email, put a disclosure on the bottom stating that the seller is selling the contract at the subject property. You do not want to mislead the agent and get in trouble.

Another free way to find buyers is to search your address in Zillow. Then look to the right and call those agents who advertise in that area. This works really well for low-end rental areas because the majority of sales are cash sales anyway. Like anything else, it will take work getting to the right agent. Just keep calling until you find the right match. If you come across an agent who does not want to work with you, simply say thank you for your time and move on. You don't give up on dating from one bad experience.

Related: 4 Feasible Ways to Get Started in Wholesaling With Little to No Money

Conclusion

In conclusion, this is another strategy to put in your tool box. You don't wont to be a one-trick pony. Also if you are in a state that is cracking down on wholesalers, then you might not want to do this — or consult with an attorney to use the proper language when dealing with agents. In my personal market, I do think this a great strategy because the majority of people think "real estate agent" when they want to buy a house. Real estate agents have access to people with a lot of cash that your average wholesaler might not.

Wholesalers: Do you work with real estate agents in your business? How do you find investor-friendly agents?

Leave a comment and let me know!

Nasar El-arabi has been involved in real estate for 12 years. During those 12 years, Nasar has wholesaled houses, rehabbed properties, built new properties, created a buy and hold portfolio, and flipped land. Nasar identified early in life he wanted to have his own business. Fortunately, because of parents who instilled an entrepreneurial spirit in him, he was able to build a seven-figure business after being terminated from his job in September of 2012. Nasar has gone on to become a successful real estate investor in Charlotte, N.C. Nasar has over 100 videos on YouTube and runs a blog at RealEstateDoru.com.

    Douglas Skipworth Rental Property Investor from Memphis, TN
    Replied almost 4 years ago
    Great article, Nasar. The other side of the coin is that agents can benefit tremendously from working with wholesalers. Most investors want access to every deal possible and wholesalers oftentimes have the inside track on properties that agents don’t. As an agent, it is very beneficial to present deals to investors that other agents don’t have access to. Whether it’s an assignment or a double closing, as long as everything is properly disclosed to the buyers and sellers, wholesalers can be an invaluable tool for agents. Thanks for encouraging wholesalers to work with agents!
    Nasar Elarabi Flipper/Rehabber from Charlotte, NC
    Replied almost 4 years ago
    You’re welcome and Thanks for taking time out to read
    Curt Smith Rental Property Investor from Clarkston, GA
    Replied almost 4 years ago
    Thanks Nasar. Why would an agent feed you a pocket listing that you buy at 60% of ARV? vs listing this house and getting 3% on another 30-40% higher selling price? I know that it’;s productive to get agents to feed you leads on expireds where the seller has too much debt to sell at what the market would offer. Thus making for lease option purchase or subject to if the monthly mortgage payment is much less than rent. But a wholesalable price from an agent fed deal? I don’t see that happening. How does it happen?
    Nasar Elarabi Flipper/Rehabber from Charlotte, NC
    Replied almost 4 years ago
    Curt, It could be for multiple reasons. 1 it could be the house cant sell at retail due to it has alot issues which will make it tough to get a bank loan. So to save ever one heart ache and time, it would be best to call a cash buyer. 2. The seller needs money FAST and the agent has less work to do by calling a cash buyer. Those are just 2 reason however not every one is motivated by cash in some cases the time is better than money. I hope that helps and thanks
    Emmanuel Gallant from Montreal, Québec
    Replied almost 2 years ago
    Hi Nasar, Just to expand a bit on the above comment.. 1) You start to create a relationship with an agent, and make a few deals together, therefore introducing this agent to your Cash buyers 2) What would prevent the realtor from contacting your precious buyers in the future, without letting you know (and therefore save up your share of the transaction)? Thank you for this great article
    Michael Noto Real Estate Agent from Southington, CT
    Replied almost 4 years ago
    Below is the most important line in this article “If you are a newbie, I would recommend you focus on finding motivated sellers. But if you have done a few deals, this could be a great strategy to increase your wholesale fees.”
    Nasar Elarabi Flipper/Rehabber from Charlotte, NC
    Replied almost 4 years ago
    thanks for pointing that out. I really appreciate it. Thanks
    Kelly Niddrie from Windham, Connecticut
    Replied almost 4 years ago
    How do you find those “motivated sellers”
    David Bokman Real Estate Investor/Wholesaler from Philadelphia, Pennsylvania
    Replied almost 4 years ago
    My partner is an agent and without his assistance and knowledge plus access to MLS wholesaling would definitely be a challenge unless your already versed in the real estate community. Having a good agent who understands the market and trends is a vital piece to the puzzle if your trying to grow your business. Good article!!!!
    Nasar Elarabi Flipper/Rehabber from Charlotte, NC
    Replied almost 4 years ago
    Thanks alot but please keep in mind you dont need MLS to be successful at wholesaling. They have other paid for services to comp properties as well. And thanks alot for reading
    Thomasine Scott from Houston, Texas
    Replied almost 4 years ago
    Hi Nasar I’m a huge fan of your videos on youtube. I really enjoy them and I’ve learned a lot. Yesterday I listened to the bigger pockets podcast with you. Very motivating and really good info. Thanks for sharing so much with us newbies. I’m in a non-disclosure state (Texas). Is there a paid service that I can use for comps or is my only option an agent?
    Nasar Elarabi Flipper/Rehabber from Charlotte, NC
    Replied almost 4 years ago
    I would strongly recommend asking some one local. I use crsdata.net they are available in certain states
    Sterling Anderson Developer from Omaha, NE
    Replied almost 4 years ago
    Great Article Nasar!. I’ve started doing it more and have also educated some agents on the process of assignments.
    Nasar Elarabi Flipper/Rehabber from Charlotte, NC
    Replied almost 4 years ago
    Thanks for reading
    Lidia Popa Wholesaler from Portland, OR
    Replied almost 4 years ago
    Hi I work with an agent. She is really good and offered to give me pocket listing. You can find investor friendly agents on realtor.com under their specialty it will list if they work with investors.
    Nasar Elarabi Flipper/Rehabber from Charlotte, NC
    Replied almost 4 years ago
    Yes, thanks so much for that information.
    Edwin W. Investor from CA, CA
    Replied almost 4 years ago
    @Nasar Elarabi Great article! How does the real estate get paid? Does he or she get a percentage of your wholesale fee?
    Nasar Elarabi Flipper/Rehabber from Charlotte, NC
    Replied almost 4 years ago
    you tell the Realtor to ass their commission on top of sale price or pay them out of your FEE. Everything is on the HUD..
    Nina Grayson Real Estate Agent from Los Angeles, CA
    Replied about 2 years ago
    Hi Nasar, I’m a Realtor and Investor. I have a Reverse Wholesaler who has cash buyers and wants me to present comps up front. I will add my comm. on top or as a % of the assign. fee, whichever is the highest option for me since I brought them the Fantabulous Deal! My question, should I charge the Wholesaler an Up Front Fee for comps? I’m effectively doing their work to find and analyze the deal. I don’t want the Wholesaler to bypass me. Thanks for your guidance, Nina
    Nasar Elarabi Flipper/Rehabber from Charlotte, NC
    Replied almost 4 years ago
    you tell the Realtor to ass their commission on top of sale price or pay them out of your FEE. Everything is on the HUD..
    NA Rodriguez Wholesaler from Houston, Texas
    Replied over 3 years ago
    Good afternoon, I’m a new investor in Houston Texas and need some advise on how to handle this situation. I have a client who lives in Mexico and owns a home here in Houston who is ready to sell. The situation is that the owner rented out their home to person “A” who was under a contract, paid their monthly rent through the bank and then moved out without informing the owner. Person “A” found another person to take over monthly payments and was pocketing the money from person “B”. The owners found out about this when the rent was not being paid in full any more and only the taxes where being paid. The owners finally got a hold of person “B” to find out what was going on and could not get any cooperation. Person “B” refused to sign a contract and pay the full amount of rent. Any advise on how to handle this situation or referrals to a company that could help evict these people would be greatly appreciated. Thank you in advance for any help with this matter.
    Shawn Crawley Wholesaler from Roanoke, Virginia
    Replied over 2 years ago
    The question I have is do you tell the seller that you plan to list it with an agent?
    Matt Greer Real Estate Broker from Fayetteville, NC
    Replied 11 months ago
    Good stuff! I really like this article. I wholesale most properties I get under contract.