Need help with working with an agent and a wholesaler

1 Reply

Hi BPers:

Can anyone please provide some assistance and/or direct me to references in working with agent/wholesaler.

Basically, if you are presented with some deals by an agent from a wholesaler. Some questions are:

1) Do I work with them if they required non-refundable earnest money?

2) Do I pay the agent or the seller pays?

3) Anything that would prepare me for looking at these deals and getting up to speed quickly.

Originally posted by @Patrick C. :

Hi BPers:

Can anyone please provide some assistance and/or direct me to references in working with agent/wholesaler.

Basically, if you are presented with some deals by an agent from a wholesaler. Some questions are:

1) Do I work with them if they required non-refundable earnest money?

2) Do I pay the agent or the seller pays?

3) Anything that would prepare me for looking at these deals and getting up to speed quickly.

 Much depends on how the wholesaler controls the property & the relationship between the wholesaler and the realtor.  Here are your options:

  • Assuming the wholesaler truly has the property under contract the realtor could negotiate direct w/ the wholesaler to receive a portion of the wholesale fee for bringing him/her a qualified buyer.
  • The realtor could prepare a contract w/ a provision for the buyer, you, to pay the realtor for facilitating the deal. 

The seller should already have a signed contract w/ the wholesaler so you won't be paying the seller.  Regarding the non-refundable earnest money- Make sure your due diligence is complete before paying.  

Regarding getting up to speed quickly- Understand how the wholesaler controls the property.  Some wholesalers own the property outright,  so it's really just an off market deal that's being called a wholesale.   Some wholesalers control a property thru a contract & then sell using an assignment contract that sells their rights to purchase the property.  Others may use a double closing. Good luck. 

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