Wholesaling with a Realtor

[Kendra Rodwell]

My main strategy is to focus on fix-n-flips but I found a great deal on a property that would not be a good flip for a newbie like myself (over $70,000 of renovation cost and some foundation issues). I found the property and had my realtor show me the place. If I have him write up the contract and then I assigned it to another investor, how does the realtor get paid? I would be wholesaling to a lender, not a real estate investor so that may complicate things a bit. 

[Account Closed]

Your Realtor will be paid at closing and unless you agreed on some other terms, the seller pays agent fees. Unless you're dealing with a FSBO, then why use an agent? California contracts are technically assignable, but as long as you have your name and/or as assigned, it's not a problem. Find a title company other investors are using in your area and get some more information on how it works in your area. As far as double closing, unless you have a major spread, assigning is much easier. Wholesaling is more about volume. One question to ask potential end buyers is what are they comfortable as an assignment fee. Usually 5-7k is average. Good luck