Buyers Agent commission on Wholesale transaction
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?
Most Popular Reply
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.