Wholesaling a property listed with a Real Estate agent

Wholesaling a property listed with a Real Estate agent

Specialist · Albuquerque, NM · Member since 2014 · 29 posts · 9 votes

Hi,  I think I found a property I can wholesale.  It's listed by an real estate agent.  I just wanted to ask if it's the same as dealing with the owner only???

Thank,

Matt

0Reply
14 views

Most Popular Reply

Dick RosenPro Member
Property Manager · Gilbert, AZ · Member since 2009 · 1k+ posts · 451 votes
11y

That is possible but highly unlikely that you'll find a good buyer. Most smart, active buyers have access to the same MLS listings and unless you've negotiated a deal that you can sell for much less than the listed price you may not get to far.

See this reply in the discussion

5 Replies

Jump to latestLatest
  • Specialist · Albuquerque, NM · Member since 2014 · 29 posts · 9 votes
    11y

    In other words, do I simply fill out a P&S agreement, find a buyer and fill out an Assignment contract?

  • Dick RosenPro Member
    Property Manager · Gilbert, AZ · Member since 2009 · 1k+ posts · 451 votes
    11y

    That is possible but highly unlikely that you'll find a good buyer. Most smart, active buyers have access to the same MLS listings and unless you've negotiated a deal that you can sell for much less than the listed price you may not get to far.

  • Specialist · Albuquerque, NM · Member since 2014 · 29 posts · 9 votes
    11y

    Okay I agree with that. So what if I was still able to purchase the property at 65%-70% ARV minus rehab and my fee. Is it not still worth pursuing?

    Also, what happens if I and the seller sign the P&S agreement with say 60 days to close and I cannot close by the 60 days stipulated in the contract? Do both parties just simply walk separate ways?

  • Raleigh, NC · Member since 2011 · 721 posts · 343 votes
    11y

    Matthew,

    Hey, that deal might work normally.  However, since it is listed it's a whole different ballgame.  I'm not saying that it cannot be done.  But you'll need to have a different approach.  If you sign the P & S agreement in most (probably all) states you cannot assign it.  One solution is to use your own funds, if they are available.  

    O.K., I know a lot of wholesalers don't have that kind of money.  But I had to get it out there.  You can also use transactional funding if there is enough spread in the deal.

    Don't get too discouraged though. I have also done some deals right off of the MLS.

    Do your thing!.........Roland

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    11y

    Your contract may call for 60 days to close, but you'll have a shorter "inspection period" probably 10-14 days or so which is the period in which you could cancel without losing your EM.  Read a copy of your local Realtor contract.  It may  address assignability.  Generally, if the contract doesn't prohibit assignments, state law would allow the assignment of the contract, but you'd still be liable to the contract terms.

    Having said that, most agents will require a solid POF or preapproval. I can generally spot a wholesaler by reading their contract, and agents who are aware generally won't let you get the property under contract..

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