Using a realtor for wholesaling properties

[Jennifer Cintron]

Is it a common practice for some RE investors to use a realtor to find properties to wholesale? If so, what is the typical procedure for this type of transaction? I understand they only work on commission, so would this be a situation in which the commission is worked into your numbers? What is the difference between using a realtor vs. going at it without one?

[Joel Owens]

Agents likely have a bunch of direct buyers they work with when they find an off market property.

Adding a wholesaler would be someone in the middle not needed to the transaction. The wholesaler isn't buying anything but being a conduit between the end buyer and the seller.

Sounds like you need to spend money and develop your own database and mailers to deal directly with sellers.

More than anything the number one mistake people wholesaling make is trying to make themselves out to be a real purchaser to develop a relationship with a broker/agent or even an owner. A wholesaler saying one thing and doing another to a party is where the deception comes in and some states do not even allow wholesaling defined within certain parameters.

If you really want to do this you might want to get a "legal opinion letter" from an attorney on how to set things up and proper disclosures with contracts. A lot of wholesaler trainers selling courses disavow themselves of any liability in the fine print.

No legal advice given.