Compensating Agent for Wholesale Help

3 Replies

Starting out if I use an agent to make offers, and run comps, what would be a fair compensation to them if I end up wholesaling a deal? 
My idea is to flip but if I get two low offers accepted at the same time, I will likely wholesale the 2nd. What do you think is fair? Should I plan to give the agent like 10% of the wholesale fee, or a flat $500-1000 referral? I would obvious use them again and have them be the listing agent when my flip is complete. Is the ongoing future relationship the expectation for most? 

@Preston Smedley Wholesaling off the MLS is a big no no. If you are using an agent to make offers on listed properties to flip them thats one thing (you will find much better deals on off market properties) but trying to wholesale deals that are listed is something else. Discuss with your agent ahead of time, if they dont feel the compensation is worth the amount of work they will be doing for you then they will most likely be non responsive and difficult to work with. Have the conversation about what you need from them up front and discuss expectations.

Promotion
NestEgg
Smarter rental management
Outperform your peers by 71%
NestEgg landlords save $6,960/yr in fees & 20 hrs/mo*. Self-manage for free or go hands-off for $29.
Start now, get $500

@Preston Smedley Wholesaling off the MLS is a big no no. If you are using an agent to make offers on listed properties to flip them thats one thing (you will find much better deals on off market properties) but trying to wholesale deals that are listed is something else. Discuss with your agent ahead of time, if they dont feel the compensation is worth the amount of work they will be doing for you then they will most likely be non responsive and difficult to work with. Have the conversation about what you need from them up front and discuss expectations.