Wholesaling with a real estate agent?

Question

Is ok to set up a wholesale deal with a real estate agent? I have found a few houses that would be great deals but they are listed by realtors. Should I contact them about the house or should I look for houses that are being sold by the owner with no realtor involved?

Nnabuenyi Anigbogu · Answer

The only issue with that is with your end buyer. You would have to get the property below the listed value by a good amount in order for you to be able to add your fee and still sell it to an end buyer.

Every good buyer on there is constantly keeping an eye on the MLS for there area. If the house is listed, chances are many investors have seen it and if it hasnt sold it means they passed on the deal. For a realtor to even be talking to you knowing you are a wholesaler, it means that they have not been able to sell it directly to an end buyer. In that case you must have excellent (and i mean excellent) negotiation skills in order to secure a contract way below listing price.

If you secure a contract at listing price (very doubtful) you would most likely not get a buyer because chances are that was already a bad deal for investors in the first place. You would have to add your fee to the listing price. As an end buyer i would not be happy if you sent me a deal that i find out is on the MLS for a cheaper price.

This is why its not the best idea to wholesale MLS properties.

Robert Adams · Answer

It doesn't matter if the property is listed by a Realtor or by the owner or not listed at all. What matters is getting all parties to agree to terms that are acceptable. Also you need the correct verbiage in the contracts so that you can assign your interest to the next buyer that you wholesale or assign your interest to.

Matt M. · Answer

People do it all the time here Colorado. I can't speak to your contracts in Nevada, but in Colorado it is easy to add language to assign the contract to a new buyer. Just make sure to keep everything in the loop as most Realtors don't like surprises like this.

Kevin Fletcher · Answer

I think you just need to remember that its important to disclose your intentions.Its a hard coversation because most  Realtors and sellers probably dont love giving you money that they could possibly have themselves. The art of the deal i guess

Jabri Carter · Answer

great thank would you happen to know where i can find great contracts? Or would i need to type them up myself?

Jabri Carter · Answer

cool! So i should just contact the agent about the property, sign a contract. Then "sale" the contract to my buyer?

Jabri Carter · Answer

cool! So i should just contact the agent about the property, sign a contract. Then "sale" the contract to my buyer?

Wholesaling with a real estate agent?

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