Wholesaler Friendly Real Estate Agents
New to Real Estate · Gainesville, GA · Member since 2022 · 38 posts · 15 votes
Good Afternoon Fellow Investors,
I am a wholesaler operating Northeast of Atlanta and I've been looking for wholesaler-friendly real estate agents. I have met some real estate agents at local meetups but most don't like working with wholesalers. Thus, I'd like some advice when it comes to finding agents who are willing and understanding of wholesalers.
Thank you and happy investing.
I'm not in your market, but what does this mean? What is your definition of working with a wholesaler?
For the most part I've found I can't really work with most wholesalers.
#1 We can't/won't list a house you don't own, so for the most part you can't really come to me and say I'd got a contract on this great house and want you to market it for me and I'll pay you X. Something like 70% of wholesale deals that get to title can't or won't close, so that puts us in a very precarious position with any buyer or buyer's agent. Some MLS won't allow us to list it and probably lots of brokers won't allow it. If your name is not on the deed, I can't sell it for you.
#2. You want me to bring you deals. Honestly it is pretty darn rare we get clients who just want to give up all their equity and get out quickly for cash. Probably so rare for me that if I keep most wholesalers names in my database, they're out of business by the time I get one. Also if I got to a wholesaler, I need to know they will close in cash on time every time, probably not using hard money, and certainly not trying to be in the middle again. That may not be you, but too many wholesalers can't close or don't close and then that puts our reputation on the line and maybe even causes lawsuits or complaints. We don't want those, our broker doesn't want those.
#3 If you are someone that has real cash and has a reputation for closing on time every time based on the cash offer you provide, NOW we're interested in talking. Maybe I want to use that as an option with every single seller. I can give them the option of #1 list with me with the normal marketing program and I think you can sell for X and net Y. #2 I will generate you a cash offer from one of my investor clients (that's YOU). It will be for 60% (or whatever #) of X and you'll net Y-60%, but no showings, no appraisals, no inspections, no repairs, you close whatever day you want and we give you a free leaseback for 2 weeks so you can move? They get to choose. That's when wholesalers get interesting to me. Especially now that Zillow and most of the other ibuyers like Opendoor have pretty much gone away.
You make it VERY interesting to me to show me the last 10 houses you closed on in your name or LLC name with cash. Then we can have a real business relationship. If that is not where you are today, no problem, get there as fast as you can.
I'm guessing Atlanta market is strong. Everything pretty much sells in Dallas, even the ugly messed up ones. Lots of cash here. Enough investors around that will pay more than wholesalers so it is tougher for us to match you up with buyers or sellers.
You're other option perhaps is to find primadonna realtors, not hustler realtors. I will list and sell almost anything if the price is right and I think I can sell it. If you're just getting started you don't really want me on your team. What you do want are the prissy, egotistical, primadonna realtors. There are some out there. They say crap like, I won't list that piece of junk as it would hurt my reputation. Ask around when you meet other realtors....hey is there anyone in your office, that is a real B agent, that won't list junk? There's always one at least in the office. Go after them, because they might give you all the ugly ones they don't want to deal with.
I hope some of this makes sense to you.
I'm not in your market, but what does this mean? What is your definition of working with a wholesaler?
For the most part I've found I can't really work with most wholesalers.
#1 We can't/won't list a house you don't own, so for the most part you can't really come to me and say I'd got a contract on this great house and want you to market it for me and I'll pay you X. Something like 70% of wholesale deals that get to title can't or won't close, so that puts us in a very precarious position with any buyer or buyer's agent. Some MLS won't allow us to list it and probably lots of brokers won't allow it. If your name is not on the deed, I can't sell it for you.
#2. You want me to bring you deals. Honestly it is pretty darn rare we get clients who just want to give up all their equity and get out quickly for cash. Probably so rare for me that if I keep most wholesalers names in my database, they're out of business by the time I get one. Also if I got to a wholesaler, I need to know they will close in cash on time every time, probably not using hard money, and certainly not trying to be in the middle again. That may not be you, but too many wholesalers can't close or don't close and then that puts our reputation on the line and maybe even causes lawsuits or complaints. We don't want those, our broker doesn't want those.
#3 If you are someone that has real cash and has a reputation for closing on time every time based on the cash offer you provide, NOW we're interested in talking. Maybe I want to use that as an option with every single seller. I can give them the option of #1 list with me with the normal marketing program and I think you can sell for X and net Y. #2 I will generate you a cash offer from one of my investor clients (that's YOU). It will be for 60% (or whatever #) of X and you'll net Y-60%, but no showings, no appraisals, no inspections, no repairs, you close whatever day you want and we give you a free leaseback for 2 weeks so you can move? They get to choose. That's when wholesalers get interesting to me. Especially now that Zillow and most of the other ibuyers like Opendoor have pretty much gone away.
You make it VERY interesting to me to show me the last 10 houses you closed on in your name or LLC name with cash. Then we can have a real business relationship. If that is not where you are today, no problem, get there as fast as you can.
I'm guessing Atlanta market is strong. Everything pretty much sells in Dallas, even the ugly messed up ones. Lots of cash here. Enough investors around that will pay more than wholesalers so it is tougher for us to match you up with buyers or sellers.
You're other option perhaps is to find primadonna realtors, not hustler realtors. I will list and sell almost anything if the price is right and I think I can sell it. If you're just getting started you don't really want me on your team. What you do want are the prissy, egotistical, primadonna realtors. There are some out there. They say crap like, I won't list that piece of junk as it would hurt my reputation. Ask around when you meet other realtors....hey is there anyone in your office, that is a real B agent, that won't list junk? There's always one at least in the office. Go after them, because they might give you all the ugly ones they don't want to deal with.
I hope some of this makes sense to you.
@Bruce Lynn Thanks for the advice and sorry I wasn't too clear. I'll share a recent experience to maybe help clarify. I had two properties I saw on Realtor.com that were on the market longer than 30 days and wanted to see if I could reach out to the realtor and maybe offer some help with finding a buyer. However, the first realtor was nice and everything and kindly said he didn't work with wholesalers. The second realtor, after saying I was a wholesaler, ghosted me completely. I felt confused because within a single day I felt like trying to deal with properties represented by realtors was difficult. I was looking to work with realtors who, are okay with my process of investing, and who would let me know about properties they are having trouble selling. But if that is a problem, then should i focus solely on FSBO properties?
Good Afternoon Fellow Investors,
I am a wholesaler operating Northeast of Atlanta and I've been looking for wholesaler-friendly real estate agents. I have met some real estate agents at local meetups but most don't like working with wholesalers. Thus, I'd like some advice when it comes to finding agents who are willing and understanding of wholesalers.
Thank you and happy investing
Realtors are NOT the place to get great deals. I have done about 500 in my market, never using and agent.
All the best
@Bruce Lynn Thanks for the advice and sorry I wasn’t too clear. I’ll share a recent experience
I think the trick is, when you say you want to help find a buyer, not really sure what that means? I can't pay you anything typically if you are not licensed? I don't think you can represent a buyer if you're not licensed. Pretty soon in Texas the way I read the new law is you cannot act in the middle at all if you are not licensed, probably/maybe different in ATL or GA although many states seem to be interested in implementing the same law. The way I read it is you can't put a property under contract and then go wholesale it to a a buyer. As a wholesaler, you'll have to close on it, then if you want to remarket it, you can yourself or you can hire a realtor to do it for you. Even currently in Texas it sounds like you're trying to be an unlicensed broker/agent and they crack down pretty hard on people here trying to do that.
What is your process of investing? I don't know what that means?
You can of course go after FSBOs, but as far as I know in most states you can't take a commission from either the seller or the buyer, if you are not licensed. That's the practice of brokerage. Same with owner finance in Texas...I think if you do more than 4 a year, then you are considered to be in the mortgage brokerage business and need a state license. Same with a lot of financial type transactions.
ONE solution to your problem is to get licensed. Then you can help all the buyers and sellers you want.
Another solution is go to work for one of the big wholesalers in your area and work as ISA-Inside sales agent, acquisitions manager, or dispositions manager. Learn how they do the business. Do it for a year or two and then if you want to go out on your own, you have a great idea and training on how to do it. You can look on the job websites for those jobs or go to REI meetings in your area, or search on wholesalers in your area and cold call them. Remember even that first call is a job interview so you better have your sales pitch down when you call them. If they don't answer or don't return the call, keep calling every day until you get an answer, because that is the job you are going for with them if you get it. Call, call, call.
I would love to learn more about your services. My business partner and I are looking for single and multi family properties in Middle Georgia.
We have years of experience doing renovations. We just flipped 4 houses in last year with our own capital.
We want to expand and keep growing.
We are looking for the right properties and potentially for partners.
Thank you!
@David Taylor, tl;dr other responses. Long story short, do not try to attempt to wholesale on-market MLS deals. To be upfront, this is a waste of everyone's time. As a wholesaler, it's your job to go direct to the seller and acquire (put under contract) deals off-market. Why do you need the assistance of a real estate agent? In all seriousness, have you thought about getting your real estate license? You seem to have a solid work ethic and may do well in the sales industry as a licensed agent.
@Wilma Matos Thanks and I would love to connect.
@Michael Dumler Okay, and thats fine. I only ask because I was reading one of the BP books that mentions working with real estate agents. Therefore, that’s where I’m mainly getting my information from and why I was curious. Also, why would I want to get a real estate license? Correct me if I’m wrong but in Georgia, you have to get sponsored by an agency and then work for that agency after getting your license. Therefore, wouldn’t I have just be getting a job where I work for someone else or am I wrong? Thanks.
A wholesaler cannot do anything with a on-market listing. Wholesalers tie up off-market deals then try to attract investors to that off market deal and essentially collect a fee (commission) to assign the contract to the investor. On market deals are visible to those same investors. There is no value added.
@David Taylor No agent with a brain is going to want to let you put their listing under contract. The property is already exposed to hundreds of buyers. Why would they take the property off the market because you hope you can find a buyer that will pay more than all the hundreds that have already seen it?
Thanks everyone for the advice. However, I do have a question. I think I may have been confused while reading this BP book but I’m mistaken. Ultimately the book is telling us to build a rapport with real estate agents for market information. If that is the case, then how would that work as a mutual partnership. If wholesalers can’t do work with realtors and the properties they represent, what can wholesalers offer to realtors?
@David Taylor, what book are you referring to? If I have a listing and receive an offer from a wholesaler, I will advise my client immediately not to consider the offer. Becoming a real estate agent means activating your license with a brokerage. It's not similar to a W2 job whatsoever, you are responsible for generating your leads and closing your deals. Moreover, most of the wholesalers that I have worked with in Georgia are indeed licensed. That being said, I'm not 100% certain about the nuance of state laws. However, since many wholesalers are licensed, this should be somewhat eye-opening to you. I do know that many states are starting to crack down on this, Georgia may or may not be one of them. To further reiterate, as a wholesaler, you should be sourcing for motivated sellers (going directly to property owners). Trying to work with an agent will most likely be a complete waste of your time. Needless to say, your time and energy are crucial in the sales industry.
Thanks everyone for the advice. However, I do have a question. I think I may have been confused while reading this BP book but I’m mistaken. Ultimately the book is telling us to build a rapport with real estate agents for market information. If that is the case, then how would that work as a mutual partnership. If wholesalers can’t do work with realtors and the properties they represent, what can wholesalers offer to realtors?
Great question!
One of the best things about a relationship between a Realtor® and a wholesaler is that you are both looking for properties that someone wants or needs to sell.
If you, as a wholesaler, find a property, and the seller would rather put it on the open market, you can pass that off to the Realtor®. And vice versa, if the seller has spoken with a Realtor® and prefers to offload the property quickly and take a hit in profit, avoiding all that might come with being on the open market as outlined by @Bruce Lynn, the Realtor® can pass that along to the wholesaler.
That wholesaler would have to be someone that I know can actually close, not just assign the contract to an end buyer or else what’s the point? I would put it on the open market and attract cash/ quick-close/ as-is investors directly, if that’s what the situation calls for.
@David Taylor I think you are getting a few things confused.
1. You can work with agents as a wholesaler. You will be a source for them to provide cash offers to their clients or potential clients. Perhaps they have a seller lead, but the seller doesn't want to list on the MLS. They can use your service to provide a solution to the homeowner. This doesn't happen very often.
2. You can buy from an agent, find an end buyer and then sell the property to them. Most contracts are not assignable via the standard state contracts as they specifically state this fact. (contracts by their nature are assignable unless specified otherwise). So you will need to double close (buy the property and then sell it to the next person in a separate transaction, but can be on same day).
3. Agents can list your flips, or list properties for sellers that you run across. They can't pay you a commission or referral fee, but if they happen to pay for some of your marketing I don't think anyone minds.
In the end, working with agents is totally possible. I see wholesalers in my market list on market deals all the time. But it is not the most common way to wholesale. It is difficult to convince an end buyer to purchase your deal when they can see it listed on the MLS for 10k less (assuming you go under contract at the list price). The end buyer feels that they could have just purchased the property off of the MLS themselves (whether or not that's true). There is less perceived value here.
Agents are willing to work with wholesalers sometimes, but only the ones with a proven track record and ability to actually close. They're wary of just receiving "low ball" offers and tying up a property only to have it fall out of contract several weeks later because you don't know what you're doing and can't actually close on the contract.
Hey David - I would love to connect.
We have found a pretty great way to do deals with wholesalers where everyone benefits (wholesalers, agents, clients).
I will reach out in the Dms!
Hey David I know what book you're referring to. I am an astro student of Jamil Danji. Send me a DM I will help you out.
Good Afternoon Fellow Investors,
I am a wholesaler operating Northeast of Atlanta and I've been looking for wholesaler-friendly real estate agents. I have met some real estate agents at local meetups but most don't like working with wholesalers. Thus, I'd like some advice when it comes to finding agents who are willing and understanding of wholesalers.
Thank you and happy investing.
Hey David i would stick to FSBO Marketplace Off market leads On market Wholesaling is way more difficult you can find many more leads/deals by DFD or using sites like Propwire.com