Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
@Juan Santiago No, I have never heard of a wholesaler going through an agent to find deals. The idea of wholesaling is to find properties that other people don't have access to. If you are looking on the MLS, you are at a huge disadvantage because I can pay more than you and I can close the deal. Using an agent completely nullifies your deal making and I don't know any agent that will dedicate much time to helping you send low ball offers to sellers so you can assign them for a profit when they can put in higher bids for the same properties and make more commission.
Los Angeles, CA · Member since 2017 · 18 posts · 3 votes
8y
Let her and everyone else know what you're doing. Indicate property types and see if she will run comps for you. Don't forget to add value to her too. Maybe referrals, lunch etc.
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
Assigning contracts isn't "investing". How do you expect to use an agent to find properties to then sell to someone else for a profit? Anyone can see the same property and buy for less
Elkhart, IN · Member since 2018 · 14 posts · 3 votes
8y
@john
@John Thedford and @Jason D.. I'm making offers on specific types of properties at a lower price and assigning to investors at the discounted price I get it for. I'm not getting them at the retail price that they have listed. that would be pointless. I have Proof of funds to get the ball rolling. But the goal is to assign the properties to investors. Have you guys never heard of using a real estate agent to make offers and then assign the properties properties? This forum and blog posts from this site are full of information about that. I also have 9 books on the topic. Some agents dont care if YOU'RE the actual buyer as long as they get their commission. And since I will be making offers on many properties, there's a chance they will get many commissions.
What i need is a script that will help me in informing her on how I want to make it happen. How do i tell her what it is that I'm wanting to do?
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
@Juan Santiago No, I have never heard of a wholesaler going through an agent to find deals. The idea of wholesaling is to find properties that other people don't have access to. If you are looking on the MLS, you are at a huge disadvantage because I can pay more than you and I can close the deal. Using an agent completely nullifies your deal making and I don't know any agent that will dedicate much time to helping you send low ball offers to sellers so you can assign them for a profit when they can put in higher bids for the same properties and make more commission.
Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
8y
@Juan Santiago I say go for it... I am 99% sure your idea won't work, but what better motivator than proving all of us wrong. I agree with the others that no agent will work with you once they know you will be assigning the deal to someone else. You indicate getting the houses for discounted prices... explain. If it is listed for $200,000 what do you anticipate getting an offer accepted at? Then you have to market it to someone else (probably illegal in your state) and then they get the assignment. Then you get your money, agent(s) get their money. I can't see any seller accepting such a low offer it allows all these "middlemen" to make a profit on an MLS listed house.
I recently contacted a real estate agent and asked if she works with investors. She said "yes I can help you, let me know what you're looking for"
But how do I let her know that I'm assigning contracts? Any script I should use to let her know exactly what I want her to do?
No matter what you do, you have to be honest. When wholesaling tell the sellers you ARE going to wholesale. With agents tell them you are assigning the contract. If she is not willing to help you, then what is the loss? She can't help you anyways by hiding this fact.
You will be surprised how many people will be receptive to you when you treat them with respect and honesty.
This is what I would do.
I would sit with her and explain who you are and what you want to do and if there is any way there would be a scenario where she can help.
Offer her a cut maybe when you do get to make money, and offer her the listing in case the sellers do not want to wholesale, and give them her card.
Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
8y
Juan Santiago
Little confused on this one...
Wholesalers find their own properties through direct mail, cold calling, bandit signs, Craigslist and other means. The deals are usually off market, which means no agent involvement.
There is no point in an agent getting involved in a transaction where the wholesaler is looking to flip the contract to someone else with a markup.
Flipper/Rehabber · Largo, FL · Member since 2016 · 92 posts · 52 votes
8y
Juan Santiago i wish you nothing but luck in your endeavors. I’d start off by asking her/him if they are even aware of what wholesaling assigning contract are. I’ve seen people wholesale MLS properties. Do your best to be transparent an honest. Honestly, scripts work, but you simple just need to be cool, calm, collective and confident and ask as there isn’t a “script” for this. I can help you tailor a script, but just say what you mean. I would also check on the legalistas of assigning contracts. If you haven’t done so already ask a real estate attorney (maybe ask your realtor for suggestions as to who they use for their closings). If I were you I’d be marketing for off market deal. Learn to cold call and get comfortable being uncomfortable. Let me know if I can help!
Elkhart, IN · Member since 2018 · 14 posts · 3 votes
8y
I'm surprised at all the investors here who have never heard of this, especially on this forum. Just because you don't know about it doesn't mean it's not possible. Here's a blog post on BP that talks about it, there's a lot more https://www.biggerpockets.com/renewsblog/2016/01/0...
Here's some books...
1. The real estate wholesaling bible (This one talks about real estate agents as part of the system)
2. How to become a wholesale millionaire - (This one is a system for targeting agents only)
Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
8y
Juan Santiago
Wholesaling is different in each state. What one person did in one state and wrote a blog post about won’t necessarily apply everywhere.
There is no point to an agent finding an off market deal to give to a wholesaler to then sell to an investor. An agent would just take the listing and sell to an investor.
Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
8y
@Juan Santiago that blog post reads more along the lines of the wholesaler using an agent on the selling/assigning end. Your post reads using an agent on the buying (well, not buying...) end. I could see an agent being "ok" with finding you a cash buyer and taking their commission. I have a harder time wrapping my head around one finding you a property for sale and working on that end of the deal.
I can say I have never heard of it, because I don't research wholesaling techniques. In my eyes wholesaling is better left to the seasoned professionals who have a lot of experience in doing deals, rehabs, running numbers, great negotiators, actually running accurate ARVs, and really probably best to wholesale the deals that don't fit into their business model. Basically not a great way for new REIs to get started, in my $0.02.
Again, go out and prove the masses wrong, it's a win win for you.
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
8y
This is no different than selling your own house. Would you sign a contract with someone that stated they have no intention of buying it but instead are trying it middle-man the deal?
Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
8y
Our real estate group would certainly say no. It has been our experience that the only way a contract is accepted when the "May assign this contract" box is checked is when the listing agent was inexperienced and missed it. I can't see any agent that is worth anything doing that for you. I'm sorry.
Realtor and Investor · Scottsdale, AZ · Member since 2017 · 1k+ posts · 1k+ votes
8y
I can see why having a relationship with a Realtor would be helpful to you as they can provide comps. However, I can't understand what is in it for THEM. And why are you making offers on MLS listings anyway? Doesn't that defeat the whole purpose of being a wholesaler??
To properly work with a Realtor, YOU should be bringing THEM deals to present to their investor clients. They should be deeply discounted deals that are like pocket listings that the agent can present as opportunities. It's a win win for all involved.
I am not sure what you are proposing.
Wow...I feel like this whole category of "investor" is digressing.
Flipper/Rehabber · Largo, FL · Member since 2016 · 92 posts · 52 votes
8y
Juan, I’d like to introduce you to a book called “How to Win Friends and Influence People” by Dale Carnegie. Thats the best real estate book you’ll read.
Wholesalers find their own properties through direct mail, cold calling, bandit signs, Craigslist and other means. The deals are usually off market, which means no agent involvement.
There is no point in an agent getting involved in a transaction where the wholesaler is looking to flip the contract to someone else with a markup.
Actually, not true.
My agent finds me wholesale deals all the time. When we flip houses she gets the listings and when I get my leads and see it is better they list with an agent I give her those leads.
People always think that agents and wholesalers are mortal enemies. This is such rubbish. Keep this in mind. We are all people. We built relationships when working together. Sure it is about money, but friendships develop. My little asian agent is vicious, I make fun of her accent, she tells me NOT to visit this property without protection because people of our color get shot. We laugh our asses off, and we are a great team. Hell yes she finds me properties to wholesale, just like sometimes it is better my eads list with an agent, such cases are there that a house is such a P O S, no agent wants to deal with it. Those I get.
Btw.. I give her crap too demanding pedicures from her! ;)
I guess this must be a market thing. The average agent around me doesn't know what wholesaling is. A perfect example, I was just answering a question on Facebook ten minutes ago about what a "contract vendee" means...
I guess this must be a market thing. The average agent around me doesn't know what wholesaling is. A perfect example, I was just answering a question on Facebook ten minutes ago about what a "contract vendee" means...
No no my handsome sharp dressed friend.
It has nothing to do with the market. Investors are everywhere, no matter the market. It has to do with finding a "good" agent. Any agent that is "good" will have worked with investors. She (because all agents are female), will have had dealings with investors.
Same story with attorneys. You just need to find one that has worked with investors before. When you find HER.. (again, all good agents are females) you better keep her!
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
@Jerryll Noorden your scenario is not common, and, frankly sounds quite odd. Why would an agent give a wholesaler a lead to assign to an investor, rather than market the property themselves? I can see if by "wholesaling", you are purchasing and then reselling the property if you find that it doesn't fit with your investment strategy, but there is no logical reason for an agent to give money to someone who is, essentially, marketing real estate without a license.
@Jerryll Noorden your scenario is not common, and, frankly sounds quite odd. Why would an agent give a wholesaler a lead to assign to an investor, rather than market the property themselves? I can see if by "wholesaling", you are purchasing and then reselling the property if you find that it doesn't fit with your investment strategy, but there is no logical reason for an agent to give money to someone who is, essentially, marketing real estate without a license.
This is what I think. Wholesaler agent relationship giving me leads is VERY normal.... however, a wholesaler being so straightforward and honest with an agent isn't.
I know this sounds unlikely but hear me out.
As I said we are all people with feelings and relationships.
Imagine this. If you had a best friend tha happened to be an agent... would she (because all agent are female, of course) not send you a lead that she wouldn't be able to deal with? Let's say the house is a DUMP. And the seller needs to sell now. Would your best friend not give you that lead as it would help you out and it would help out the seller. She does a good deed, she get's a huge thank you from both seller and you her best friend.
Now, this is exactly what is happening. The reason why you think it is so unheard of, is because it honestly looks like I am the only monkey investor that is so honest and transparent wholesaling.
I also do a lot for my Agent. I get about 30 eads a week from my website. I gave my agent the login info. She logs in every day and deals with those leads (for no cost) and she picks out the best leads and she emails me the comps. Any lead where the seller wants market value, because often sellers think their house is the exception to it all... I give her those lead.