Tips on Developing Relationship with Agent or Gaining Access to MLS

8 Replies

Good Morning Everyone,

I am in the process of expanding my Wholesaling business. In order to do so, I am looking to develope relationships with licensed agents.

Question 1: Does anyone have suggestions on how to approach an agent regarding working with a wholesaler?

Question 2: I am considering using a 30%-70% split of the assignment fee. The agent will get 70% if he/she brings buyer to table and 30% if I do. Does anyone have experience of a more effective compensation package?

Thanks in advance for your help!

@Robert Vieira  - I don't really understand the question.  Me, as the agent, am working with you, the wholesaler.  You have the property and I possibly bring you buyers for a % of the wholesale fee?

@Robert Vieira  how many leads do you receive that do not want to sell for discount but want to still sell?  All those leads can be compensation for a realtor. 

@Brianna Schmidt - Sorry, I was not specific enough of my goal. I am seeking a Realtor to provide me with a list of properties off of the MLS. If I get one of those properties on contract and I find the end Buyer, 30% of the Assignment Fee will go to the Agent for finding the property. If the Agent finds the end buyer, he/she will obtain 70% of the Assignment Fee.

I'm seeking advice on ways to develope relationships with these Agents and/or better ways to compensate them for their work. Does this make more sense? Thanks again!

I will make an example to see if this fits your scenario

- The realtor sets an automatic daily search in the MLS with your parameters and you get a daily email with a link to properties

- When you find a property that looks good to wholesale you call the agent and provide him the deposit check, proof of funds and the conditions of your offer, he makes the offer in your name (for example on 100,000$)

- The listing agent presents the offer to the owner

- If the owner accepts your offer, you calculate the price for reselling the contract (let's say 110,000$) and you start looking for investor to assign your contract

- You find an investor and agree a price (let's say 105,000$) and to close in the established day according to the contract you have

- If the investor is willing to use your agent, then he will represent the buying side and the listing agent will split the commission with your agent (typically 3% for the listing brokerage and 3% for your agent's brokerage), which is transparent to you because the seller is the one who pays that to the listing agent.

- Then you will pay part of your assignment fee to the realtor, according with your agreement (30% of 5,000$ = 1,500$ if you found the investor or 70% of 5,000 = 3,500$ if the realtor find the investor)

There can be an issue

- Probably the investor has his own Realtor to handle his purchases, in that case you will need to figure out something mutually agreed with your Realtor, because he and his Brokerage will not get his split of the commission from the listing agent at contract closing

Anyone has a comment about this?

Originally posted by @Nereo Mendoza :

- Probably the investor has his own Realtor to handle his purchases, in that case you will need to figure out something mutually agreed with your Realtor, because he and his Brokerage will not get his split of the commission from the listing agent at contract closing

Anyone has a comment about this?

That is very interesting scenario.  I would love to hear how a closing agent would handle this, if there was no agreement between the two buyer's agents.

Typically the agent will request a representation agreement from you when he start setting the MLS searches or before submitting the first offer, but the Investor probably has an agreement with his own Realtor to get money back or discounts in the next transactions, it can be tricky to have everybody happy in this case and it can even jeopardize the business with the Investor, but is good to clarify this ahead to avoid problems with your Realtor and keep getting leads from him.

Note: for us the MLS has not been really useful to find leads here in the DC area, the heavy discounted properties are taken long before they hit the market, and the few good ones that appear in the MLS doesn't last much or get multiple offers from inexperienced investor that pay to much (and probably don't get any profits at the end)

As a seller, I go to an agent to list my property for fair market value.  If I needed a quick sale or was willing to take a lower price I would not be listing it with an agent.  

As an investor the first thing I do when a wholesaler send me an address is google it. If it is on the MLS I delete the wholesaler from my list of contacts. Why would I pay more than the property is listed for on the MLS?

Sometimes the wholesalers get the property from an agent and put in under contract, so you will see it on the MLS with under contract status

In my area most of the cases the numbers don't work with properties from wholesalers coming from the MLS, because they have more competition to put them under contract, but as always there are exceptions

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