Buyers Agent commission on Wholesale transaction

[Ryan Beasley]

Hey Everyone,

I currently have a client that is trying to purchase a property that is under contract with a wholesaler. What I’m wondering is how is my commission paid? Does the technical owner still pay it or does the wholesaler pay it at closing?

[Jay Kennedy]

It just depends on how the wholesaler setup the deal. 

If he’s assigning it, it’s going to come from the original seller’s proceeds. If he’s doing a double close or using transactional funding then your commission would be paid by the wholesaler.

I go into every property knowing it’s going to take me around 9% to sell it. So, in my case I purchase the property from the seller and, in most cases, I pay ALL fees. Then the end buyer’s agent receives the 3% commission from the 6% I paid my listing agent. But, then this known as “wholetaling”.

Oh and congrats on the deal! And to your client for getting a property at, what I’m assuming, is a good price.