Okay so I have been wanting to use a realtor to maximize my wholesale profits and I understand they add their fee on top of the price that I want but what contracts would I use with the realtor since I’m assigning the property using a assignment contract? Would I use a jv optional contract to sign with the realtor? Someone help please who’s been through this process I would greatly appreciate it.
@Jacob Michal How does using a realtor help you make more on your wholesale deals? Realtors can find buyers just as easily as you can. I dont understand the value proposition. Also, how do you ensure that the realtor gets paid. If I were an angent in that situation my biggest concern would be protecting my a** and making sure I got paid.
@Lydia T. Because realtors have connections sometimes you don’t and there’s more value to realtors then just maximizing a lot of people using realtors in wholesale deals. And that’s why I’m asking what contracts to use so that me and the realtor can both be ensured to get our money
@Jacob Michal I still dont see the logic...the majority of realtors deal with people purchasing properties using traditional financing. But to answer your question. You have a couple options. You could JV with an agent once they locate a buyer and your JV agreement would spellmout the terms of who gets paid what and when. You could have the buyer agree to pay the agent an agreed upon fee at closing and reduce your purchase price by that same amount. You could just pay the agent a flat referral fee or birddog fee for bringing the buyer. You would probably have better luck working with other wholesalers in your area. I JV or co-wholesale with other wholesalers when they cannot get a buyer. I send their deal to my buyers list in exchange for a percentage of their deal. Another wholesaler would probably be a better resource for you instead of an agent. Just my 2 cents
@Lydia T. I appreciate your viewpoint and honesty! I’ve been trying to network with other wholesalers as well
Let's say the realtor wants a flat commission of $3,000 and you are selling the property for $150,000. The realtor's buyer will buy the property at $153,000 and the realtor will get paid out a $3,000 commission at closing. Since they are licensed they can just get paid on the settlement statement.