What are the benefits of an unlicensed wholesaler working with a real estate agent or broker?
I am a wholesaler based out of Pierce County, Washington (state) and was curious.
I am aware that agents can help with comps, but what else? Also how does compensation typically work? What is fair compensation when working with an agent?
If your a wholesaler, then the benefit of working with brokers is you can offer them 2-3% if they bring you a buyer? You wouldn't allow them to list the property and they couldn't list the property with you because your not the owner of record and their contract would need to be with the owner of record, but they can still bring you buyers.
You will have challenges wholesaling a deal to a buyer that is using conventional financing because the lender wont do their loan when the seller (you the wholesaler) is not the owner of record, but most hard money lenders have no problem doing the loans when a wholesaler is involved. Its actually common place.
If the buyer is using a conventional loan, you would need to double close on the deal to have a chance to flip it. The buyer would need to use a Fannie Mae / Freddie Mac loan because they don't have anti-flipping rules. FHA does have anti-flipping rules for the first 90 days of ownership. You will also need to call various title companies in the county that the property is in and ask if they will do a double or simultaneous closing? Some will, some wont. You need to know who will in advance.
If you have a good enough relationship with the Broker, you can have them pull comps for you to help you determine ARV, however there are many sites out there that can pull the sold comps in the area and you can actually do that work yourself.
The name of the game though, once you have a property under contract, is to get as many eyeballs on the deal as possible, so you can move the deal as quickly and efficiently as possible.
I would also reach out to several hard money lenders as possible and throw the deal by them. They can pre-vet the deal and you can use that to give your buyers options for their financing.
If you need referrals to some great hard money lenders, PM me, I can get you headed in the right direction.
I hope this helps?
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