Using Real Estate Agents, Brokers and Realtor as arbitrage buyers...
How possible is this strategy for finding solid buyers?
Hello, I am new to the Real Estate investing, wholesaling business and I am not sure how possible it would be to use agents or brokers to buy new properties that are off market. From what I know about real estate is that agents are there to facilitate the sale of of the property to the buyer so. If the buyer likes the property then they buy it correct? So what would stop me from finding a property that is off market, negotiating a price from the seller $1-5-10k less than asking price and then try to have an agent find a buyer and cash me out? My profit would be $1-10K and I could then have a more consistent buyer pool that would increase my success rate of sales. Instead of big huge profits, there would be small profit margins but more sales.
This sounds way too easy of a strategy, im sure I am forgetting something or not understanding the flaw in this strategy. So what are the flaws? Profit margins eaten up by fees? Commissions? Laws? Conflict of interest?
Any feedback is appreciated.