Off market deal with potential realtor involved

Off market deal with potential realtor involved

Member since 2019 · 7 posts · 3 votes

Hey all!

I am beginning my first wholesale transaction. This is an off market property that I sourced myself. The seller has NOT listed the house with an agent.

 I am supposed to look at the property tomorrow, the owner is an absentee, living somewhere else in Texas. I am in Fort Worth and so is the property. I have pulled comps etc and after my viewing tomorrow I think I will be ready to put him under contract, however I think I hit a snag.

The guy said "I have a friend of mine who is a realtor and I was planning on using her". He doesn't have the property under contract however, just considering using her.

My question is, how would you lock this down?

My thought was to tell him "look, there isn't enough margin, so if you bring a realtor in, I will have to take that out of your net."
Would you just throw a contract at him and fingers crossed he signs and we close the deal?

I imagine him bringing a realtor "friend" in would pretty much kill the deal because any equity we are making here would probably be disclosed to him and he would just take the deal off the table.

I'm a newbie, what can I say🤷‍♂️

Thanks for your any advice you can offer here. Really looking for the best way to take a hot lead and get him to the closing table.
Thanks again!

(Alex, if you're reading this, yes I copied and pasted my message to you here as well. My fingers are getting tired from all of typing 😁)

1Reply
16 views

Most Popular Reply

Rental Property Investor · North and Central Texas · Member since 2020 · 10 posts · 26 votes
5y

I'd go the route that a Agent especially a Realtor(R) is used mostly to connect a buyer and a seller. You two have already connected so what you are paying a Realtor for has already been done. The other part that a Agent and or Realtor is used for is for the REPC and connections to title companies. I assume you already have a Texas REPC and a title company. The seller may want his own title company and attorney to look over the REPC. If that's the case do a price comparison for him. The Seller Always pays the Agent, even if the REPC changes the commission around it's still coming from the sell of the property and so always comes out of the seller more then the buyer. Show him a 6% commission verses a 3-5 hundred dollar attorney. The title is paid for in closing costs no matter what so you both negotiate to pay that regardless if a Realtor is involved. The point is the Main thing a Realtor give and is paid for is already done, connecting the buyer and seller. If he wants a Realtor or Agent "Friend" still offer to have the "Friend" be a transactional party only for a flat fee of around $300 to $1k depending on the size of the deal. I have done a lot of transactional deals as a Agent. They are easy and dam near free money in situations like this. If his "friend" is not willing to act as one then the seller needs to revaluate his Friendship with this Agent/Realtor. Just Saying.

See this reply in the discussion

6 Replies

Jump to latestLatest
  • Rental Property Investor · North and Central Texas · Member since 2020 · 10 posts · 26 votes
    5y

    I'd go the route that a Agent especially a Realtor(R) is used mostly to connect a buyer and a seller. You two have already connected so what you are paying a Realtor for has already been done. The other part that a Agent and or Realtor is used for is for the REPC and connections to title companies. I assume you already have a Texas REPC and a title company. The seller may want his own title company and attorney to look over the REPC. If that's the case do a price comparison for him. The Seller Always pays the Agent, even if the REPC changes the commission around it's still coming from the sell of the property and so always comes out of the seller more then the buyer. Show him a 6% commission verses a 3-5 hundred dollar attorney. The title is paid for in closing costs no matter what so you both negotiate to pay that regardless if a Realtor is involved. The point is the Main thing a Realtor give and is paid for is already done, connecting the buyer and seller. If he wants a Realtor or Agent "Friend" still offer to have the "Friend" be a transactional party only for a flat fee of around $300 to $1k depending on the size of the deal. I have done a lot of transactional deals as a Agent. They are easy and dam near free money in situations like this. If his "friend" is not willing to act as one then the seller needs to revaluate his Friendship with this Agent/Realtor. Just Saying.

  • Kyle MccawBusiness Member
    Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
    5y

    @Jeffrey Brandt It's no big deal. Just let the seller know you will be paying the same price either way.

    McCaw Property Management4.4905 Reviews
  • Jack of all trades · Fort Worth, TX · Member since 2015 · 20 posts · 12 votes
    5y

    What’s the address ? I buy in Fort Worth all day!

  • Member since 2019 · 7 posts · 3 votes
    5y

    Thank you guys so much for taking the time from your days and replying to my post!

    @Crandall Thomson, we are 100% tracking with each-other on this. I love the ideas you threw out there on how to relay the idea that....he doesn't need a realtor. I had another discussion with the seller today after reading everyones posts and was able to get him to somewhat understand the fact that.... he doesn't need a realtor haha.

    @Account Closed you got it buddy, as soon as the property is under contract I will shoot it over to you. 3/1 1400ish sq ft in Lake Worth area.

    @Kyle Mccaw great point. He knows he can't sell the house the way it is on a regular market, no bank will loan on the property without the proper rehab. He is going to make essentially a fixed amount no matter what I do with it later.

    I guess my main question is, what would a single close or a double close look like when a realtor is involved on the sellers end, especially when wholesaling?

  • Kyle MccawBusiness Member
    Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
    5y

    you can assign the contract and not have to double close

    McCaw Property Management4.4905 Reviews
  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    5y

    I don't see an issue. Are you using a TREC form?

Join the conversationCreate a free account to reply, vote on answers and follow this thread.