Wholesaling with Realtors

2 Replies

Why is it that many investors don't like working with realtors?

Your goal is to buy a property for less than your eventual investor, who wants to pay way less than market, is willing to pay for it.  Our goal is sell it for market value.  If you were wholesaling cars, would you try to go buy them from a retail car lot?

Not to mention too many of them only have a retail mindset, they are only thinking about end user buyers or the sellers directly. They are only geared towards selling homes at the true market value and don't understand much about rehabbing, 70% rules, etc. Picket fences, 2.4 kids, commissions, fresh cookies for a Sunday open house, that is all that is on their mind. 

The frustration of being an investor and having to rely on a realtor is the realtor likely the difference in expectations. Most investors are looking for someone who will write a lot of offers, run a lot of BPOs, maybe view a lot of homes for them, and realtors only work on commissions. 

There are a few ways around that. A lot of investors just get their license so they can make their own offers or search MLS themselves. You could also find a realtor who is willing to do all of this legwork, maybe someone young and hungry and just starting out and willing to do all the dirty work. Depending on your investing volume you could also bring someone on as an "associate" of yours, with a small amount of pay to do the legwork with commissions paid on anything you close.

I speak from both sides here, I am an investor myself but also have my license and have acted as the buyer's agent for others as well. It is much more frustrating to write offers for buyers who claim they are legit buyers, only for them to keep submitting offers at 60% of asking price when the true value is clearly much closer to the asking price. No reasoning for the low offer other than they want to throw a bunch of crap at the wall and see what sticks. Nothing wrong with that, you won't know until you make an offer, but it is just hard to find an agent willing to spend time writing a lot of offers unless they know it will be worth their time. 

Join the Largest Real Estate Investing Community

Basic membership is free, forever.