Is a realtor needed in a wholesale deal?

Orange County, California
Buying & Selling Real Estate
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Is a realtor needed in a wholesale deal?

Ruben Valladolid Jr
Realtor 路 Chino, CA 路 Member since 2019 路 6 posts 路 1 vote

Im a realtor, and I have a cash buyer (Up to about 850-900K) that is also a flipper. Not having any luck finding my buyer a flip on the MLS, so I was looking for alternative ways like reaching out to wholesalers.

Will I get cut out of the deal if my buyer goes with the wholesalers property? In other words, is there anyway I can represent my buyer and get a commission in a transaction with a wholesaler? 

Kind of new to all this, so i appreciate the patience and guidance.

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  • Joel BongcoBusiness Member
    Investor 路 Honolulu HI & Los Angeles, CA 路 Member since 2018 路 370 posts 路 178 votes
    2y

    Aloha @Ruben Valladolid Jr -  we are a community of Flippers and Wholesalers. focusing on off Market Distressed Properties in SoCal (San Diego to Los Angeles).   

    First and foremost, as an agent you do have a duty to your client always, which I do understand you are aware of. For now, leaving the Agent relationship on the side, when a person is working with a wholesaler, that wholesaler is already taking their cut off the contract amount that the seller agreed to. So with that said, the amount is usually inflated. However, if the number is right, there should be some meat on the bone for your cash buyer to flip. Now as far as cut/commission for your services, you could negotiate that with the Wholesaler since you鈥檙e bringing the buyer to him or with your buyer since you are working to get a lead to turn into a deal for him.
    This is the part that gets pretty tricky for you as an Agent, all transactions that you do should be reviewed and process with your PB/BIC to make sure that you鈥檙e staying above the line. You worked hard to get your license, you don鈥檛 want to compromise that at all. I hope that this helps somewhat, but feel free to schedule a time with me and we can go more into details.

    BTW,  I have a meetup in Irvine on 4/20 @ 10am (Pacific) in Irvine.  Please join us to continue this conversation or meet other Flippers and Wholesalers in our group.  We may have some wholesale opportunities for you and your client:  https://www.biggerpockets.com/forums/521/topics/1182202-triu...
    [email protected]808-427-2444
    Inspired Life Investments LLC.
    WebsiteView Page
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  • Ruben Valladolid Jr
    OP
    Realtor 路 Chino, CA 路 Member since 2019 路 6 posts 路 1 vote
    2y

    Thank you so much Joel! That is the perspective I needed. Ill be there on 4/20. I just put it on the calendar 馃檪

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