How do Wholesalers & RE Agents work together?

Question

Hi there!

Basic question. Can someone better explain how wholesalers and real-estate agents work together? In the typical wholesale deal, do they normally work together at all?

Any help is greatly appreciated!

Cheers!

John Thedford · Answer

Lets not get them mixed up. There are LEGAL licensed wholesalers and then unlicensed brokers skirting and breaking laws. They are not the same.

John Thedford · Answer

What can an unlicensed broker do that an agent cannot do? Agents can list properties and get 100x more exposure. More exposure usually leads to a higher price for the seller. Furthermore agents do not have to mislead sellers of an intent to buy the property. Unlicensed brokers usually break the law out of greed and desperation for money.

Brooke Andrea · Answer

@Gage Clark If you are a wholesaler you are going to get a lot of leads that my not fit your criteria with enough equity or whatever the case is, but you can still pass that lead on to an agent to help the owner in selling the home.  The agent should return the favor with some leads or potentially pay you a referral.  It can be a win win scenario!

Gage Clark · Answer

Well, John, I think one could find corruption in any posting . . . licensed or unlicensed. I think there is benefit - i.e. helping someone sell a house that they would otherwise have a hard time getting through an inspection. Further, that house eventually goes down the line and makes a new family happy. Also, for the homes in near foreclosure, the quick cash is sure to help.

I appreciate your input, but am grounded in my principles. I'd never cheat or do something I thought was unethical. However, I'm excited to help sellers, flippers (who employ many hard working people), and future home owners.

Lastly, it also seems that licensed agents, as you proudly are, get good commissions at the very end when the flipping company needs to sell the house.

Doesn't seem to be all evil . . . now does it? I'm new though, so what do I know.

John Thedford · Answer

When you see the deceit perputrated on innocent sellers and the harm caused by unethical and desperate unlicensed brokers on them that certainly helps one form an opinion. The only bright light is the fact that most unlicensed brokers fail quickly and go away.

John Thedford · Answer

In many states it is not legal to pay a non-licensee a referral fee.

John K. · Answer

@Gage Clark

As @Brooke Andrea mentioned. Wholesalers and agents can definitely team up and help each other, greatly. Wholesalers generate more leads per dollar than most realtors can imagine. The unfortunate hard fact is, as a wholesaler, I can't always strike a deal with a seller. This means I have to turn it over to one of my agent "partners", for a fee of course. This is a huge benefit to those agents, as they won't need to spend their money on ads that may or may not be effective, instead they are provided solid leads of sellers that definitely want to sell their home.

How do Wholesalers & RE Agents work together?

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