using a realtor to help with wholesale deals

using a realtor to help with wholesale deals

Real Estate Investor · Canton, NC · Member since 2011 · 18 posts · 11 votes

Hello everyone. New to this site. I have some questions. I want to wholesale deals and assign them to a buyer, using either an Assignment Agreement or an Option to Purchase agreement. I want to use a realtor to find undervalued, handyman, re-habs. ( I understand they have access to these types before they hit the MLS). I'll have realtor find properties, do comps,etc. So, here is how the deal will go. I decide on which property I want to make offer on, decide on price, run it by the realtor. Realtor calls seller, makes this offer, seller accepts, I put it under contract, seller signs contract. Meanwhile, I am finding a buyer. I find one who wants property, I collect a non-refundable deposit from buyer, and buyer signs contract ( with inspection clause in case buyer backs out). Realtor takes contract to Title co for closing and has my fee (the remainder of it after non-refundable deposit on HUD form. Buyer cuts check at Title co. to seller. My fee will be separate on the HUD form, so Title co. will cut me my check. How does realtor get paid in this wholesale deal? Does this cut in to my fee, do I need to re-figure it? Thank you, Christine

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Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
14y

Your response was so long I lost interest about 5 seconds!!!

Curt Davis - KAIZEN Realty538 Reviews
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  • Financial Advisor · Miami, FL · Member since 2018 · 6 posts · 4 votes
    7y

    I work with realtors once I already have buyer in place who wants specific props.  Everybody gets a little less but everybody has less stress and less work to do. However

    it may not work with very costly rehabbing props but it works for the non perfectly.

  • Member since 2019 · 1 post · 1 vote
    7y

    Jaun Michael I would love to follow you on the Facebook and Instagram. I enjoyed your knowledge of what you do. I’m trying to do the Real Estate investor role.  My husband is a realtor I’m trying to see how I can get in the mix with him being a Wholesaler. 

    Thanks

  • Member since 2021 · 3 posts · 1 vote
    5y

    I know this has been quiet for a while but I have a follow up question on this topic. 

    It looks like most folks here are talking about using a real estate agent to find a deal on a property in the first place but to my understanding that's the entire job of the wholesaler. I am concerned about the legality of brokering a deal with a buyer once I have the option contract assigned.


    Here's how I'm thinking this should go:

    1) I do the upfront work to get a property under contract.

    2) I pass this off to a transaction broker who is legally allowed to advertise a property they don't own. Provided they find a buyer we proceed with a double close and the Broker gets paid out of my fee.


    Did I miss anything? To my understanding that has me solidly inside the law, I'm not asking the broker to operate in any unconventional manner, and they get paid exactly the same as they normally would. Please tell me if I'm wrong and how. Also my understanding is I would need to use a transactional broker because I am not the seller is that correct?

    Thanks!

  • Member since 2023 · 2 posts · 0 votes
    3y
    Quote from @Juan Michael:

    I'm a realtor here in California..... Finding properties for wholesale investors is a part of my business model. It accounts for a great deal of what i call QUICK CASH... I find the deals.... Investor/Wholesaler provides POF and EMD.... we take it under contract.... I immediately Blast it out to my list and so does my investors/wholesalers..... If they find the buyer ... i just get the Buyer-side Commission... If i find the buyer... I get the buyer-side commission + 70% of the wholesale fee.... 30% to the investor/wholesaler for providing docs and doing paperwork. It really works well.

    Part 2 : 40% of the time.... when i find the buyer.... that buyer will give me the back-end listing.... now i go searching for a retail buyer.... sometimes i find the buyer there too... now i get 5% commission of the rehabbed price... worse case 2.5%....

    Point : There is great advantage to having a realtor that UNDERSTANDS the wholesale process, UNDERSTANDS how investors think.... and adds value. Realtor gets what i call FREE MONEY ( Commission paid by the bank(Seller) that the investor/wholesaler does not pay..... And every now and then i can participate in a joint venture with investors that choose to keep and rehab the property for themselves

    Hope this helps


  • Member since 2023 · 2 posts · 0 votes
    3y

    Hi Juan, I'm a realtor in Tx, I'm wholesaling an mls property, how do I make sure that I get paid the selling agent commission? 

    TIA!

    Maria Martinez

  • Member since 2019 · 4 posts · 1 vote
    2y
    Quote from @Maria Martinez:

    Hi Juan, I'm a realtor in Tx, I'm wholesaling an mls property, how do I make sure that I get paid the selling agent commission? 

    TIA!

    Maria Martinez


     hello, you make sure you get it from your seller. Or what ever wholesaler you are working with you work out a deal with them.

    I have been a active wholesaler for sometime in tx and just added in working with agents and its been a game changer.

    We are now also the end buyer as well as we are cherry-picking our deals to flip/hold. So this can be done really well if done correctly. 

    We have a large buyers list from our original wholesaling the past 3 yrs and we can move these deals quickly and everyone gets paid.


    Imagine as a realtor bringing pocket listings each mo and we helping you close 1 or more extra deals a mo that you wouldnt have done before. Plus we are fast and easy to work with for the ones that get it and want to learn and understand and do more deals each year.

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