I am new to real estate investing, and I am going to meet with a local real estate agent in Greenville, SC to potentially become partners. I would essentially find the deals off market, and he would run the comps (since I don't have access to the MLS), and walk me through closing my first assignment of a house. Could anyone give me advice as to whether or not this is a good move? I guess the only draw-back is that he would be getting his share of the deal. But heck, I figure it would be better to see how it's done for the first couple times. Is my thinking right on this?
Are you looking to wholesale? If you are looking to use an agent to wholesale he/she you can bargain with for help. i.e. "All deals I find that I cannot wholesale I will forward to you to list, in return can you run comps for me for the properties I am going to wholesale."
Using an agent will help you tremendously and can be very effective for both parties.
Ben - if you're new to buying a home and want guidance it's probably a good idea on at least the first one.
Normally, with a deal on MLS the seller is paying the buyer's agent commission. In an off-market deal you will likely be paying that directly instead. When you sign a Buyer Representation Agreement you will agree to a payment (probably in the 2.5-3% range but it's negotiable, especially if you are doing most of the work). If the seller agrees to pay this then normally that removes any responsibility you have to pay the agent.
Hope that helps and good luck!
Are you planning on investing or wholesaling?
If your plan is to wholesale I would be very clear about my intentions. What you want in that case is an agent who has established relationships with cash buyers. I think between referrals of potential sellers looking for retail prices and the listings from the rehabbed properties, it should work well from the agent. If you can find good deals having a source for ready buyers will be great for you.
I am planning to wholesale (even though I hate using that word) lol. I talked with the agent. He is very investor friendly, and has done work with investors for over 10 years. I believe it will be beneficial for me because, as Bill said, most of the time the seller will be paying the buyer's agent. And for the deals that I have to pay him, who cares? lol. At least to get a few deals under my belt and a little money to re-invest.
Thanks for your help guys!!
Oh one other thing, he is totally aware that I will be assigning my contracts, and is totally for it.
How did it work out? I'm looking for an agent in the Grenville area. Not for Wholesaling, buy for investing. Would this person be someone you recommend?
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