I'm new to Real Estate and taking the "Reverse Wholesaling" approach and reading Kent Clothier's PDF file he recommends working with a Real Estate agent.
In doing some research there are pros and cons to working with a real estate agent. I've lined up with a real estate agent.
If my goal is to find property not listed on the MLS where does the real estate agent come in?
How can she benefit me?
How do we work together?
I'm so confused about this part!
I've researched stuff here but still nothing solid hits me as to why we would work together.
I've already reached out to an agent and she is asking me to sign a buyers agreement. I'm so confused on this part.
Thank you in advance,
First of all when speaking to an agent make sure to explain yourself. A good idea would be to find a real estate agent that is investor minded. Explain that you are a real estate investor focused on wholesaling and you are looking to create a network that is mutually beneficial.
A real estate agent or license will benefit you.
A real estate agent can help you by running comps for properties you find. This is very important because every successful offer will start with knowing the ARV. They can also help you by finding properties on the MLS that have just showed up or that have been sitting and might accept low ball offers. You can also benefit by using them to market your properties. Being a professional real estate agent usually means they have a network of other investors and agents as well. Real Estate Investing is all about networking.
You will have lots of sellers who wont accept your low offer as wholesaler especially if your offer gives them no cash or they have to come up with the difference to finish paying the debt. Let them know that you have a great realtor who may be able to help them net more on the sale than you are offering. That's the benefit to your realtor... Tons of low effort leads. When you buy a house tell the seller about your realtor, they might be looking to buy another house soon. Tell your realtor that you are doing this and that you will continue to do so. When it seems like someone is very interested in your realtor, ask them if you can give the realtor there number. Easy.
You need comps, and a second opinion and buyers. A good realtor can help you with all of those. You probably need them more than they need you... I'm not a realtor. Your goal should be to help your realtor make more money from your relationship than any of their other clients. They probably get a few emails a week from tire kickers who saw some infomercial or took some free seminar. Set yourself apart when you contact them or you won't get a response. Don't waste their time.
One more thing. My agent sends me fsbo yard sign leads. If I buy he makes 3%. Have a good, honest agent and you will profit.
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