Wholesaler working with Realtor

5 Replies

Hello BP Community,

I am just getting started with Wholesaling and have some questions about the benefits of working with a Realtor. I have been networking to meet other investors and one investment firm in particular sends deals to see if I can find an end buyer. Of course I would get a cut of the profit for bringing in the end buyer. However, my question is what if a Realtor whom I have a good relationship with helps me find the buyer, how does the realtor get paid? Would it be a cut of my earnings that I receive from the investment firm who has the property under contract? This may be a stupid question, but I am just trying to find the best ways to structure deals with the resources that I have. 

@jordan

"If the Realtor helps me find the buyer"

It depends on What you mean by help you? 

Will the Realtor just give you buyer leads? And you contact the buyer or will the Realtor be doing the actual talking to the potential buyer

@Jordan Jarvis If the Realtor is doing the legwork they can act as a Buyers agent thus get commission from they buyer. You get a finders fee from the company for bringing in the Realtor and Buyer. Guess you would have to trust their word.

Good Luck

@Jordan Jarvis negotiate with the realtor this but remember if the realtor is finding a buyer and the property is a fix and flip the buyer will need a realtor to sell property.  What I am saying is the realtor is getting both ends of the deal so if you do have to pay out I think it should not be much because you are essentially giving your realtor a listing which will likely provide a way higher commission once the property is ready to sell. 

Good question!

I'm working with a Realtor to get my wholesaling business off the ground.

I'm still super "green" in the business but my guess without actually closing a deal is just cutting a check to him from your account after you close your deal and paid for your efforts.

When I discussed this with my realtor to make sure there was nothing unethical or illegal involved it was basically just paying him however I choose to. 

Focus for me right now...is help him get new clients and learn the Real Estate industry as I grow my business.

Good luck,

Manny

Originally posted by @Shawn M. :

@Jordan Jarvis negotiate with the realtor this but remember if the realtor is finding a buyer and the property is a fix and flip the buyer will need a realtor to sell property.  What I am saying is the realtor is getting both ends of the deal so if you do have to pay out I think it should not be much because you are essentially giving your realtor a listing which will likely provide a way higher commission once the property is ready to sell. 

Thank you so much Shawn! This is exactly the kind of feedback I was looking for. The realtor I'm  working with has an established buyers list already, so maybe a finders fee would be proper for this type of deal structure since he will be making comissions once the house is ready to be put back on the market.

As an investment realtor, I am constantly having real estate agents contact me about my wholesale properties for their investors. If the margins are good and equitable, I simply tell the agent to tack their fee on the purchase price. As long as the ROI, cap rate and ARV are not affected and the investor is getting his money worth. Usually they will add $1000 to introduce their buyer to my property.

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