Buying From Agents

4 Replies

I'm curious if any of you have ever done a wholesale deal directly with an agent? i.e. Have you found a property well below market value listed by an agent, and gotten the property under contract with little money down? A typical wholesale deal is done directly through the owner of the property, but no one talks about dealing with properties listed on the MLS or similar listings. Why would an agent not want to do such a deal, they still get the same amount of commission?

The traditional thought process of a real estate agent is different than a real estate investor or wholesaler.   Most agents will shy away from an investor looking to do a wholesale flip.   Your true intent as a wholesaler is to assign the deal, not buy it.   

To make life easier, find a licensed agent who deals with investors.  Someone who has that mentallity.  Also someone who knows about Transactional funding and double closings.   You can buy a property under market.  Use Transactional funding to fund and close the deal with an end buyer.     This works

Here is a link that has more info about this

http://www.biggerpockets.com/renewsblog/?s=transac...

Thanks Gerald, this is exactly what I was looking for.

But understand, any decent RE agent is going to know that he can get a better price for his seller on the open market, than you can get from just your "buyer's list", definitely better than your buyers price, less your fee.  Let alone that you're not actually a buyer, and have to go looking for one.

But suppose the list price is low enough for me to offer his asking price, why wouldn't he accept?  I'm giving exactly what they're asking for, and the chances that a different buyer is going to initially offer something above his asking price are slim.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.