Should I tell a listing agent that I am a wholesaler?
Member since 2019 · 57 posts · 25 votes
Hello everyone!
I am a new real estate investor starting out in wholesale. I have been trying to learn more about wholesale and have found out that there are two camps pertaining to this subject.
There are people who believe that wholesalers are a necessary part of the real estate ecosystem while others think wholesaling is an immoral cash grab by opportunists.
I want to be ethical and aboveboard throughout the process of the deal by telling the listing agent I am in wholesale before I start asking questions about the property. However, I am receiving conflicting advice on whether I should even disclose that.
What would the experts on this forum recommend? I dont want to lie but apparently a listing agent might be turned off from discussing the deal with me if i disclose.
Thanks in advance!
Nah, "wholesaler" will either confuse them or upset them. I'd just tell them how great your offer will be and make sure you mention:
1) I have no money and intend to put $0.00 in escrow
2) I really don't know who the actual buyer will be
3) I want to tie up your property as long as I can whilst I'm off posting my Day-Glo signs on the side of the road or mailing cheesy ma-and-pa letters with scrawl font.
4) I'm going to write at least 20% below FMV so I can make my slice
Nah, "wholesaler" will either confuse them or upset them. I'd just tell them how great your offer will be and make sure you mention:
1) I have no money and intend to put $0.00 in escrow
2) I really don't know who the actual buyer will be
3) I want to tie up your property as long as I can whilst I'm off posting my Day-Glo signs on the side of the road or mailing cheesy ma-and-pa letters with scrawl font.
4) I'm going to write at least 20% below FMV so I can make my slice
@Jonathan Hasan If you want to be ethical, get your real estate license. Unlicensed wholesaling is illegal in almost every state.
Trust me, it's really not that hard to get a license. In Mass and Maine where I'm licensed, the exams were embarrassingly easy. The math (which scares some people) was too.
Further, as a wholesaler making an offer, any seller's agent worth his salt will smoke you out pretty quickly.
If it were me, I'd start by verifying your funds (which you likely don't have) - and that includes those HML sites where you print your own proof of funds. Those aren't worth the paper they're printed on. No verifiable funds? Your offer will be rejected without a counter.
Next, in the extremely unlikely event that your offer was accepted, I'll hold you to timelines. You'll have 7-10 days for inspections and when I figure out that you're a wholesaler, I'll see to it that your deposits go "hard" (non-refundable). You'll be running around like a chicken with your head cut off, trying to find an end buyer in your list of maybe a few dozen "investors", when being on MLS will have already exposed the property to tens of millions of people.
Most likely, you'll default. In that case, I'll see to it that you lose your deposits.
Of course it will never get to that point because you'll have to make a substantially below-market offer in order to make your illegal profit. Every seller's agent will strongly discourage the seller from accepting it - especially when it's written with a minimal EMD. I always require a deposit large enough to discourage buyers from backing out without proper justification.
You might default on the purchase and walk away, but I'm going to make sure it hurts.
You say you want to operate ethically and above board and I commend you for that!
Seriously, look at getting your real estate license. With that license you can earn a respectable living and have a clean conscience. You also won't have to worry about getting prosecuted or sued.
But if you make your living screwing sellers out of their equity by unlicensed wholesaling, the first thing you sacrifice is your ethics and your conscience won't be far behind.
Start by searching on [your state] Association of Realtors and see what classes are required.
For starters if The properties are already listed on the MLS and it was a screaming deal then it probably would've already been snatched up. I'm not weighing in on the whole Seller debate but you've got to be able to source your own leads outside of the MLS.
@Steve Morris
Thanks for your reply!
I am not sure about your points 2 and 3 because I already have some investors on my buyers list that have enough cash to do these sorts of deals. I am not interested in dragging out the timeline of the deal either. I want all parties to benefit.
"Should I tell this potential date I have a raging case of herpes as well as severe intractable dingleberries?"
Better get it out there upfront, its the right thing to do and they're going to find out eventually.
@Charlie MacPherson
So I see that wholesaling is quite a large topic on bigger pockets. Are you telling me all of those individuals have real estate licenses? Also doesn't the seller potentially derive benefits from a wholesale deal if they cant find anyone to take the properties of their hands?
@Jonathan Hasan you seem like an ambitious young man. It’s obvious you’re young by your picture and you’re trying real hard. Your ambition is great. I would suggest you learn real estate above and beyond wholesaling. If you learn other aspects of real estate then that’s where the long-term wealth is. There are a lot of people that’s very negative to wholesalers, because of many factors that are too long to describe here. Study real estate figure out a way to keep as many properties as possible. I have a son that I hope to teach real estate to and I have already started and I sure would not want people bullying him on an open forum. If you continue to pursue wholesaling that’s your choice just be sure that you are trying to figure out a way to keep properties, Because that’s where the long-term wealth is.
@Steve Morris
Now that I am thinking about it, can I ask you what your personal experience has been with wholesalers?
@Jonathan Hasan Wholesaling as it is commonly practiced and promoted is done without a real estate license, in spite of the fact that almost every state has language that defines real estate brokering as something to the effect of doing any of the following: offering to sell, rent, lease, exchange, transfer ownership of a property for another party in expectation of anything of benefit.
In other words, marketing a property that you don't already own. If your name isn't on the deed, you cannot market it.
The seller benefits most when they put their home on the open market with a licensed real estate agent. That's because:
1. The agent is subject to a strict NAR Code of Ethics if they're a Realtor (member of NAR).
2. Even if not a NAR member, much of that CoE is replicated in state laws that are designed to protect the consumer.
State real estate commissions, Attorneys General and local Realtor boards can and do enforce discipline on agents who violate regulations. Discipline can include monetary fines (sometimes VERY large fines, especially for Fair Housing violations), license suspension and outright license revocation.
3. The agent is a fiduciary to the seller. That means that they are required by both law and ethics to put the seller's interests first. Wholesalers have no such obligation.
4. In addition to other marketing channels like social media and PPC, licensed agents market homes on MLS, which reaches tens of millions of people. Wholesalers have perhaps a few dozen investors in their database. The licensed agent probably has a 200,000:1 advantage in the number of people he can reach.
Which do you suppose has the best chance of reaching the one person who will pay the highest price with the best possible terms?
5. In order to make money, the wholesaler has to get the property under contract for less than market value.
Let's say a property has a true market value of $100,000. The wholesaler probably wants to make $10,000, but needs to sell the contract to an investor. That investor also wants to pay less than market value - let's assume their target is 25% below market. That means that the investor will pay $75,000 and the seller actually gets $65,000.
Compare that to the same sale with a Realtor. We sell it at $100,000 and charge a commission of approximately 5%. In this case, the seller receives $95,000 vs the $65,000 he would get from the wholesaler.
The key point is that the wholesaler must, by definition, pay less than market value. The difference comes straight out of the seller's pocket and goes into the wholesaler's.
Finally, how does that wholesaler get a $100,000 house for $65,000? He does it by finding sellers who are ignorant of the true market value, easily manipulated, gullible and/or desperate to sell to get out of a bad life situation. And those are the wholesalers that I find despicable.
If its on the MLS its not worth trying to wholesale. No agent will recommend that their seller accepts an "assignable contract"
You really should. I think the big issue with wholesaling is that you are the middleman which isn't normal to have such a role in a traditional real estate transaction. Also, you are making money. If you were the seller, how would you feel if you sold your home "low" just so this "middleman" can assign his purchase rights to an investor for more money? Wouldn't the seller rather have just sold it to the investor and made the money? What was their Realtor doing (so the thinking would normally go)?
I didn't think wholesalers needed licenses. It might vary by State. In my layman's point of view, its a fine line whether you are brokering real estate or not as a wholesaler.
Also, how are you going to even start the transaction if you don't declare that you are wholesaling? Or, how are you even doing it? The offer will need Proof of Funds to start....
From my limited experience with wholesalers, I've found them to be of limited value. None of their information is valid in my opinion. So, I have to do all my own homework. At best, all they are doing is serving as another lead source. Wholesaling seems to tend to be an "entry" position to real estate investing. I know there are experienced investors in my area that wholesale, but its not their primary function. Of course, the problem with those leads are I'm generally getting what they are passing over instead the prime deals.
You obviously have a good deal of drive to do this. Without trying to deter you, I would recommend that you also have a good primary job. While there are tons of advice and methodologies for investing without any money, you'll note that the investors who aren't trying to surmount this problem have decent W2 income to support getting financing and to build up their cash. This gives them the freedom and flexibility to do all sorts of investments.
Good luck.
@Jonathan Hasan you seem like an ambitious young man. It’s obvious you’re young by your picture and you’re trying real hard. Your ambition is great. I would suggest you learn real estate above and beyond wholesaling. If you learn other aspects of real estate then that’s where the long-term wealth is. There are a lot of people that’s very negative to wholesalers, because of many factors that are too long to describe here. Study real estate figure out a way to keep as many properties as possible. I have a son that I hope to teach real estate to and I have already started and I sure would not want people bullying him on an open forum. If you continue to pursue wholesaling that’s your choice just be sure that you are trying to figure out a way to keep properties, Because that’s where the long-term wealth is.
Hello Joe! Thank you for the kind words!
I am intending on going to fix and flip and then buy and holds. I was just asking this question because I wanted to do full disclosure with listing agents but have heard conflicting advice on whether I should say I am in wholesale.
If i get any vitriol from anyone, that is merely a reflection on them.
It sounds like your son is in good hands! Teach him the ropes so he can build wealth of his own!
If its on the MLS its not worth trying to wholesale. No agent will recommend that their seller accepts an "assignable contract"
Thanks for your reply Mike.
If you could, would you be willing to tell me why they would say that? Maybe its obvious to you but I am a beginner in this field.
Thanks in advance
"Should I tell this potential date I have a raging case of herpes as well as severe intractable dingleberries?"
Better get it out there upfront, its the right thing to do and they're going to find out eventually.
Have there been any listing agents who were confused at the mention of wholesale? I have heard that some agents are unaware of what wholesaling is. It seems weird since wholesaling is such a large business. I would just have teach the agent what wholesale is at that point, correct?
@Jonathan Hasan Wholesaling as it is commonly practiced and promoted is done without a real estate license, in spite of the fact that almost every state has language that defines real estate brokering as something to the effect of doing any of the following: offering to sell, rent, lease, exchange, transfer ownership of a property for another party in expectation of anything of benefit.
In other words, marketing a property that you don't already own. If your name isn't on the deed, you cannot market it.
The seller benefits most when they put their home on the open market with a licensed real estate agent. That's because:
1. The agent is subject to a strict NAR Code of Ethics if they're a Realtor (member of NAR).
2. Even if not a NAR member, much of that CoE is replicated in state laws that are designed to protect the consumer.
State real estate commissions, Attorneys General and local Realtor boards can and do enforce discipline on agents who violate regulations. Discipline can include monetary fines (sometimes VERY large fines, especially for Fair Housing violations), license suspension and outright license revocation.
3. The agent is a fiduciary to the seller. That means that they are required by both law and ethics to put the seller's interests first. Wholesalers have no such obligation.
4. In addition to other marketing channels like social media and PPC, licensed agents market homes on MLS, which reaches tens of millions of people. Wholesalers have perhaps a few dozen investors in their database. The licensed agent probably has a 200,000:1 advantage in the number of people he can reach.
Which do you suppose has the best chance of reaching the one person who will pay the highest price with the best possible terms?
5. In order to make money, the wholesaler has to get the property under contract for less than market value.
Let's say a property has a true market value of $100,000. The wholesaler probably wants to make $10,000, but needs to sell the contract to an investor. That investor also wants to pay less than market value - let's assume their target is 25% below market. That means that the investor will pay $75,000 and the seller actually gets $65,000.
Compare that to the same sale with a Realtor. We sell it at $100,000 and charge a commission of approximately 5%. In this case, the seller receives $95,000 vs the $65,000 he would get from the wholesaler.
The key point is that the wholesaler must, by definition, pay less than market value. The difference comes straight out of the seller's pocket and goes into the wholesaler's.
Finally, how does that wholesaler get a $100,000 house for $65,000? He does it by finding sellers who are ignorant of the true market value, easily manipulated, gullible and/or desperate to sell to get out of a bad life situation. And those are the wholesalers that I find despicable.
Charlie,
Thank you for your detailed response. Its nice to be able to hear a critique from a real estate expert. You have given me a lot to think about. I would like to talk to you more at a later time about this topic, if you would be willing.
@Jonathan Hasan Wholesaling as it is commonly practiced and promoted is done without a real estate license, in spite of the fact that almost every state has language that defines real estate brokering as something to the effect of doing any of the following: offering to sell, rent, lease, exchange, transfer ownership of a property for another party in expectation of anything of benefit.
In other words, marketing a property that you don't already own. If your name isn't on the deed, you cannot market it.
The seller benefits most when they put their home on the open market with a licensed real estate agent. That's because:
1. The agent is subject to a strict NAR Code of Ethics if they're a Realtor (member of NAR).
2. Even if not a NAR member, much of that CoE is replicated in state laws that are designed to protect the consumer.
State real estate commissions, Attorneys General and local Realtor boards can and do enforce discipline on agents who violate regulations. Discipline can include monetary fines (sometimes VERY large fines, especially for Fair Housing violations), license suspension and outright license revocation.
3. The agent is a fiduciary to the seller. That means that they are required by both law and ethics to put the seller's interests first. Wholesalers have no such obligation.
4. In addition to other marketing channels like social media and PPC, licensed agents market homes on MLS, which reaches tens of millions of people. Wholesalers have perhaps a few dozen investors in their database. The licensed agent probably has a 200,000:1 advantage in the number of people he can reach.
Which do you suppose has the best chance of reaching the one person who will pay the highest price with the best possible terms?
5. In order to make money, the wholesaler has to get the property under contract for less than market value.
Let's say a property has a true market value of $100,000. The wholesaler probably wants to make $10,000, but needs to sell the contract to an investor. That investor also wants to pay less than market value - let's assume their target is 25% below market. That means that the investor will pay $75,000 and the seller actually gets $65,000.
Compare that to the same sale with a Realtor. We sell it at $100,000 and charge a commission of approximately 5%. In this case, the seller receives $95,000 vs the $65,000 he would get from the wholesaler.
The key point is that the wholesaler must, by definition, pay less than market value. The difference comes straight out of the seller's pocket and goes into the wholesaler's.
Finally, how does that wholesaler get a $100,000 house for $65,000? He does it by finding sellers who are ignorant of the true market value, easily manipulated, gullible and/or desperate to sell to get out of a bad life situation. And those are the wholesalers that I find despicable.
Investing is often a transfer of wealth from the weak hands to the strong hands. Same is true with stocks and other assets. One man's trash is another man's treasure. I'm not a wholesaler, but I am an investor, I think there is a place for wholesaling. Sellers that don't want to fix up their properties and need fast cash don't need to use realtors. Most realtors have zero business dealing with investors in the first place. Investors and realtors speak different languages. Realtors know retail, most wouldn't know the first thing about turning a profit for an investor. I'd rather work with a scrappy kid on the buying side like the OP than a realtor who doesn't own a property outside of their overpriced primary home. The NAR needs to stop trying to monopolize real estate. Just because someone passes two exams and gets a shiny pin that says NAR doesn't mean they are better than a wholesaler trying to feed his/her family too.
"Should I tell this potential date I have a raging case of herpes as well as severe intractable dingleberries?"
Better get it out there upfront, its the right thing to do and they're going to find out eventually.
Have there been any listing agents who were confused at the mention of wholesale? I have heard that some agents are unaware of what wholesaling is. It seems weird since wholesaling is such a large business. I would just have teach the agent what wholesale is at that point, correct?
Maybe some new, freshly-licensed agents won't know the term. Almost all agents would use industry standard contracts that very likely do not include the "or assigns" magic words that wholesalers need in the contract.
Wholesalers market for off-market deals almost by definition, so if you chase on-market deals, you're a fish trying to swim in sand.
You got a lot of good advice above as to why this is a waste of time for you, but a couple more thoughts:
1. Agents are typically barred from paying unlicensed individuals any fees as part of procuring a buyer, and already signed a contract to pay the agents set amounts. Thus you can't get paid via that route. You could double-close if you can pull it off, but you'd basically have to deceive the seller and their agent about you being a legit buyer.. You are far more likely to be unable to find a buyer (since the deal is already on the MLS at a lower price) and thus your offers will fall through. You may be able to save your earnest money if you bail during contingency periods, but you will get figured out after it happens a couple times, and it will happen frequently. RE is a small world, reputations are a thing.
2. An assignable contract is just tying up the property while a wholesaler markets it for a buyer, and that is just dumb. Do you think you can out-market all the MLS data-fed websites, realtor.com, zillow, and the combined power of every single buyer's agent in your market?
3. Wholesalers are, to put it mildly, not considered the paragon of honesty and fair-dealing that they like to think themselves as being. They are usually operating illegally (brokering without licenses), marketing illegally (SMS and call spam, ringless voicemail, bandit signs, etc), their business model basically relies on taking advantage of desperate or naive sellers and taking a chunk of their equity without the seller knowing, which isn't very respectable, and frequently just being useless clueless middlemen using magic 8-balls for estimating rehab and ARV numbers.
4. Wholesalers need below-market prices on the contracts they flip, because that's what their contract buyers need. No realtor would advise their client to sell truly below market to an assignable contract. If they want to drop the price, they'd just drop the price on the MLS to get a legit, bona-fide buyer.
The only reason wholesalers are a "large business" is there is insane demand for deals right now, and the state regulatory agencies just can't keep up with the sheer number of new wholesalers being minted every day by these weekend seminars. Nobody in the industry really likes them except other wholesalers, and investor buyers with money burning holes in their pockets. Investor buyer agents will work with you on deals you bring to them, but they sure wouldn't advise a seller to sell under-market using an assignable contract.
If you want to "wholesale" by buying a property yourself, and THEN immediately selling it, 100% go for it. Maybe it just needs a coat of paint or a tenant removed to make the deal work at a higher number..... But trying to work with MLS deals and an assignable contract will just be a huge waste of time for everyone.
If its on the MLS its not worth trying to wholesale. No agent will recommend that their seller accepts an "assignable contract"
Thanks for your reply Mike.
If you could, would you be willing to tell me why they would say that? Maybe its obvious to you but I am a beginner in this field.
Thanks in advance
Jonathon, I was an investor doing a deal once, a pre-foreclosure, where the seller did an assignable contract with me. Had a discussion with the seller and his attorney, and they were quite specific as to what the outcome is. They don't want the property sold to any Tom, Dick, or Harry coming by and ruin the neighborhood. When it's assigned, the choice of buyer is out of their hands.
In that area, sellers are often represented by attorneys would write their own addendums to P&S contracts which normally prohibits assignments. It was changed to "This contract can be assigned once". The whole purpose is to give the seller more control. Why they done it this way is a big long story which I won't go into. If my assignment fails, need to do another, I have to go back to the seller.
Having been in real estate investing for a while, it's also known that some big bad dudes can have people scout out properties and then sell it to them via assignment, hiding the actual buyer. I unknowingly did a rental that way, rented an apartment to a police officer, and never understood why he never move in. When I called him, he was always at his mom's place. The water bills went to zero and he always paid the rent in cash and I asked him "doesn't the police dept. issue paychecks"? I had a box in the lobby for tenants to leave their rent checks and he always left me an envelope stuffed with cash and I had to make special arrangements to pick it up. Turns out a bunch of crooked cops use the place to meet once a month and divide the loot they collect from area merchants in a protection racket. I found out about it when the gangs activity was discovered, they were finally arrested.
Assignments are often used in flips to hide money the middleman makes. It could also be use to hide the identity of the real buyer. Often, it involves criminal activity like using it as a drug house. The most recent case is that of Epstein, Donald Trump's billionaire pal who got arrested for sex crimes, had a girl friend that went into hiding. Police was searching for her, and turns out it was bought under someone else's name, and from what I read used something like a flip to get it to her under a phony name. They finally found her.
"Should I tell this potential date I have a raging case of herpes as well as severe intractable dingleberries?"
Better get it out there upfront, its the right thing to do and they're going to find out eventually.
Have there been any listing agents who were confused at the mention of wholesale? I have heard that some agents are unaware of what wholesaling is. It seems weird since wholesaling is such a large business. I would just have teach the agent what wholesale is at that point, correct?
Maybe some new, freshly-licensed agents won't know the term. Almost all agents would use industry standard contracts that very likely do not include the "or assigns" magic words that wholesalers need in the contract.
Wholesalers market for off-market deals almost by definition, so if you chase on-market deals, you're a fish trying to swim in sand.
You got a lot of good advice above as to why this is a waste of time for you, but a couple more thoughts:
1. Agents are typically barred from paying unlicensed individuals any fees as part of procuring a buyer, and already signed a contract to pay the agents set amounts. Thus you can't get paid via that route. You could double-close if you can pull it off, but you'd basically have to deceive the seller and their agent about you being a legit buyer.. You are far more likely to be unable to find a buyer (since the deal is already on the MLS at a lower price) and thus your offers will fall through. You may be able to save your earnest money if you bail during contingency periods, but you will get figured out after it happens a couple times, and it will happen frequently. RE is a small world, reputations are a thing.
2. An assignable contract is just tying up the property while a wholesaler markets it for a buyer, and that is just dumb. Do you think you can out-market all the MLS data-fed websites, realtor.com, zillow, and the combined power of every single buyer's agent in your market?
3. Wholesalers are, to put it mildly, not considered the paragon of honesty and fair-dealing that they like to think themselves as being. They are usually operating illegally (brokering without licenses), marketing illegally (SMS and call spam, ringless voicemail, bandit signs, etc), their business model basically relies on taking advantage of desperate or naive sellers and taking a chunk of their equity without the seller knowing, which isn't very respectable, and frequently just being useless clueless middlemen using magic 8-balls for estimating rehab and ARV numbers.
4. Wholesalers need below-market prices on the contracts they flip, because that's what their contract buyers need. No realtor would advise their client to sell truly below market to an assignable contract. If they want to drop the price, they'd just drop the price on the MLS to get a legit, bona-fide buyer.
The only reason wholesalers are a "large business" is there is insane demand for deals right now, and the state regulatory agencies just can't keep up with the sheer number of new wholesalers being minted every day by these weekend seminars. Nobody in the industry really likes them except other wholesalers, and investor buyers with money burning holes in their pockets. Investor buyer agents will work with you on deals you bring to them, but they sure wouldn't advise a seller to sell under-market using an assignable contract.
If you want to "wholesale" by buying a property yourself, and THEN immediately selling it, 100% go for it. Maybe it just needs a coat of paint or a tenant removed to make the deal work at a higher number..... But trying to work with MLS deals and an assignable contract will just be a huge waste of time for everyone.
Thanks Nicky,
I guess I will have to do some more thinking on this. There are a lot more details that were outside the scope of my awareness. I appreciate you taking the time to answer my questions.
@Jonathan R.
Amen! I am a Realtor/Investor so I got both sides of the brain... and there is DEFINITELY a huge space for Wholesalers. Just do it well.
When you suck you make the whole industry look bad.
@Jonathan Hasan
Just FYI, check out state law. You likely can’t wholesale a property under contract wit a realtor. Additionally they probably can’t share commission with you for bring a buyer. PA realtors for example use the PA realtors contract which explicitly forbids assignments. You are going to look very suspicious asking for that to be removed from the contract!
@Jonathan R.
Amen! I am a Realtor/Investor so I got both sides of the brain... and there is DEFINITELY a huge space for Wholesalers. Just do it well.
When you suck you make the whole industry look bad.
I'm also not a big fan of the NAR getting rid of pocket listings. Sometimes as an investor you want a realtor to market a property as an "off market" property to investors and buyers. Pocket listings and the realtors that represent them are cool.
@Steve Morris
Now that I am thinking about it, can I ask you what your personal experience has been with wholesalers?
Had one that I actually accepted an offer on due to seller insistence. Buyer gave me one lie after another and walked with no E/M.
Every offer needs E/M and most need Proof of Funds. Also, NO assignment unless it's an entity controlled by the offeror.
I'm also not a big fan of the NAR getting rid of pocket listings.
OOC - How do they do that? Am not a Realtor (C) since not a member of NAR.
Right now, the apt market is slowing and a listing is almost more of a liability if it doesn't move in the first month.
About half my deals are off-market.
"Should I tell this potential date I have a raging case of herpes as well as severe intractable dingleberries?"
Better get it out there upfront, its the right thing to do and they're going to find out eventually.
Have there been any listing agents who were confused at the mention of wholesale? I have heard that some agents are unaware of what wholesaling is. It seems weird since wholesaling is such a large business. I would just have teach the agent what wholesale is at that point, correct?
Maybe some new, freshly-licensed agents won't know the term. Almost all agents would use industry standard contracts that very likely do not include the "or assigns" magic words that wholesalers need in the contract.
Wholesalers market for off-market deals almost by definition, so if you chase on-market deals, you're a fish trying to swim in sand.
You got a lot of good advice above as to why this is a waste of time for you, but a couple more thoughts:
1. Agents are typically barred from paying unlicensed individuals any fees as part of procuring a buyer, and already signed a contract to pay the agents set amounts. Thus you can't get paid via that route. You could double-close if you can pull it off, but you'd basically have to deceive the seller and their agent about you being a legit buyer.. You are far more likely to be unable to find a buyer (since the deal is already on the MLS at a lower price) and thus your offers will fall through. You may be able to save your earnest money if you bail during contingency periods, but you will get figured out after it happens a couple times, and it will happen frequently. RE is a small world, reputations are a thing.
2. An assignable contract is just tying up the property while a wholesaler markets it for a buyer, and that is just dumb. Do you think you can out-market all the MLS data-fed websites, realtor.com, zillow, and the combined power of every single buyer's agent in your market?
3. Wholesalers are, to put it mildly, not considered the paragon of honesty and fair-dealing that they like to think themselves as being. They are usually operating illegally (brokering without licenses), marketing illegally (SMS and call spam, ringless voicemail, bandit signs, etc), their business model basically relies on taking advantage of desperate or naive sellers and taking a chunk of their equity without the seller knowing, which isn't very respectable, and frequently just being useless clueless middlemen using magic 8-balls for estimating rehab and ARV numbers.
4. Wholesalers need below-market prices on the contracts they flip, because that's what their contract buyers need. No realtor would advise their client to sell truly below market to an assignable contract. If they want to drop the price, they'd just drop the price on the MLS to get a legit, bona-fide buyer.
The only reason wholesalers are a "large business" is there is insane demand for deals right now, and the state regulatory agencies just can't keep up with the sheer number of new wholesalers being minted every day by these weekend seminars. Nobody in the industry really likes them except other wholesalers, and investor buyers with money burning holes in their pockets. Investor buyer agents will work with you on deals you bring to them, but they sure wouldn't advise a seller to sell under-market using an assignable contract.
If you want to "wholesale" by buying a property yourself, and THEN immediately selling it, 100% go for it. Maybe it just needs a coat of paint or a tenant removed to make the deal work at a higher number..... But trying to work with MLS deals and an assignable contract will just be a huge waste of time for everyone.
Thanks Nicky,
I guess I will have to do some more thinking on this. There are a lot more details that were outside the scope of my awareness. I appreciate you taking the time to answer my questions.