Wholesaler working with a broker

5 Replies

Hey guys, I just came across some wholesale deals and I was refered to a broker in the area. I spoke with her on the phone and to do my part, I sent her what I had. Next, I find out that she has to talk directly to the sellers. Now, I’m not jumping to conclusions quite yet but she said she will need to be creative in offering me a referral fee and she has to list only with the sellers. Did I just screw up? Btw, it was just land but still. Do brokers have the right to take your deal without offering you anything?

Yes. The point of wholesaling is for you to sell the homes, not a Realtor/Broker.  The realtor can not pay you a commission and anything they do offer is going to be disappointing.  The only possible salvation you have here with no guarantee is to get the actual owner to sign something stating they will pay you your fee at closing but I am not sure how this works.  In the future do not bring your deals to Realtors, you are only hurting yourself. 

@Dan Roma You can have an agent list the property if you include that right in your contract (this is a major component of wholetailing). But you have to have the property under contract before getting the agent involved.

@Dan Roma you have kind of screwed up. I don't actively seek to work with licensed RE agents. The ones I do work with, have always come to me & we set up an arrangement that way. But I haven't had to make a "creative" solution to get paid & they don't speak with my seller,...they have no need to. I have the contract, they have investor buyers. 

@Dan Roma Here in MA (and it might be nationwide) it is illegal for a licensed person to pay an unlicensed person.

As a Realtor, I'd rather walk away from a deal if it meant violating the law to get it.  It's not worth losing my license.