Using Real Estate Agents for Wholesaling?

Question

Do you guys have any thoughts on using Real Estate agents in regards to wholesaling. One course I took says do not use them, another one says to use them.

Any thoughts?

Thanks!

Account Closed · Answer

I think most real estate agents would be ineffective because they don't understand the investor perspective and needs.

I also believe if you find the right RE agent that it can prove help in finding some potential deals.  RE agents are definitely not created equal.

Andy J. · Answer

They may be worthwhile in helping you find properties to put under contract.  Regarding listed properties: If you can get access to the MLS yourself it would be preferable to find them yourself and work with the listing agent in that type of scenario.  If you're looking for deals before they're listed, then a good agent whose marketing has brought them sellers would be able to get you first dibs if you have a good relationship.

However, once you have the property under contract you are much better off marketing to investors yourself.  It may be easier to market wholesales using a realtors "network" or skills but easier almost always means less profitable.  If you have a really good deal it won't be difficult to find a buyer.

Jaremy Moritz · Answer

Most agents I've encountered are clueless about investing.  The rare few that don't have their heads buried up a dark hole are actually very beneficial, both on the buy and sale sides of wholesaling.  Here's how:

Buy side:  I've come across a few agents that regularly list "fixer upper" houses that others in their office pass up.  I'm not talking about REOs, but true "individual seller" listings.  These agents realize what their potential buyers look for and expect regarding condition and pricing.  If you can build a relationship with them, you may be able to get a "heads up" on future listings.  I always ask them to give me a couple days notice when they have a new "hot" one and see if I can get it sold before they post it on the MLS.  Doesn't always work, but when it does you look like a stud and they will remember you on future deals.

Sale side:  when you have an available deal, contact the selling agent for similar properties that have sold "as is" recently in the area of your property.  Ask them to call the buyer that closed on the deal you saw on the MLS and tell them that you would gladly pay their commission if they bring you a buyer.  The good thing here is that you already have a good idea what the buyer would be willing to pay based on the sale price, pictures, and comments on the listing.  Even if that specific buyer isn't interested, the agent may have other buyers that might be.

As Charles said, not all agents are created equal.  Hell, most are a pain in the ass when it comes to investing.  But don't assume that they all are or you'll be passing up on a lot of potential business.

Justin S. · Answer

I've used investor friendly agents for wholesaling with good success.  I would use them in a flat fee time agreement.

Using Real Estate Agents for Wholesaling?

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