Wholesaling on market properties (already on Redfin Zillow etc)

23 Replies

Originally posted by @David Balogun :

Anyone have experience wholesaling properties already listed. Thinking of finding investment property’s for out of state investors

Hello David,

Your best bet is to find the deal on your own before attempting to sell it to an investor or end user.

Homes that are already listed with a Realtor cannot be marketed to potential buyers UNLESS you have permission from the Realtor. 

Furthermore, if a Realtor cannot sell their own listing, chances are it is not a great deal or is not being priced/marketed well. That being said, if you wait for the listing to expire, you can try to contact the owner directly and find out if they'd let you market their home.

Best of luck to you moving forward!

Abel

Ah ok got it. Yea I wouldn’t want to promote the deal more so bring deals that may be out of town for a list of investors I know. So if I were to work with the listing agent it’s possible to do?


Originally posted by @Abel Curiel :
Originally posted by @David Balogun:

Anyone have experience wholesaling properties already listed. Thinking of finding investment property’s for out of state investors

Hello David,

Your best bet is to find the deal on your own before attempting to sell it to an investor or end user.

Homes that are already listed with a Realtor cannot be marketed to potential buyers UNLESS you have permission from the Realtor. 

Furthermore, if a Realtor cannot sell their own listing, chances are it is not a great deal or is not being priced/marketed well. That being said, if you wait for the listing to expire, you can try to contact the owner directly and find out if they'd let you market their home.

Best of luck to you moving forward!

Abel

Originally posted by @David Balogun :
Ah ok got it. Yea I wouldn’t want to promote the deal more so bring deals that may be out of town for a list of investors I know. So if I were to work with the listing agent it’s possible to do?


Originally posted by @Abel Curiel:
Originally posted by @David Balogun:

Anyone have experience wholesaling properties already listed. Thinking of finding investment property’s for out of state investors

Hello David,

Your best bet is to find the deal on your own before attempting to sell it to an investor or end user.

Homes that are already listed with a Realtor cannot be marketed to potential buyers UNLESS you have permission from the Realtor. 

Furthermore, if a Realtor cannot sell their own listing, chances are it is not a great deal or is not being priced/marketed well. That being said, if you wait for the listing to expire, you can try to contact the owner directly and find out if they'd let you market their home.

Best of luck to you moving forward!

Abel  

It doesn't make sense for you to partner with the listing agent. Mainly because they have a contract with the seller in which THEY are being promised a commission % for bringing forth a buyer. If you are bringing a buyer to the listing agent and you do not have a RE license in that state, it'll be tough to get paid unless you have a written agreement with the buyer.

There are plenty of other scenarios in which this "deal" could end up costing you a lot of time with NO guarantee for compensation.

I host an investment club meet-up in my market and I cannot tell you how many people have come to me to try to sell me on a "deal" that is already listed. It is very unfortunate because it isn't very practical to try to get a deal this way. In many ways, it is not even ethical. I try giving them my best advice but the cold-hard fact is that the same time they are spending trying to sell a property (without contractual obligation to the seller) is the SAME time they can put into cold calling, sending direct mail, and marketing for their own off-market deal.

Wholesaling is about finding property owners who have NOT yet decided to sell their property with someone, and having that seller trust YOU to sell it (or at the very least, assign the contract). Like I said, I unfortunately deal with this situation too often but if you'd like to connect and discuss further, I'd be happy to get into more detail with you.

@David Balogun Wholesaling listed properties is a big no no! You bring absolutely no value in that scenario. You will definitely ruin your relationship with your buyers when they perform their due diligence and discover that the property you are marketing is on Zillow, MLS, Redfin etc. the value that wholesalers bring is finding properties that are off market that the buyer wouldnt have found without the wholesaler. This is not the case with a property that is on the market already.

Thanks !

Originally posted by @Lydia T. :

@David Balogun Wholesaling listed properties is a big no no! You bring absolutely no value in that scenario. You will definitely ruin your relationship with your buyers when they perform their due diligence and discover that the property you are marketing is on Zillow, MLS, Redfin etc. the value that wholesalers bring is finding properties that are off market that the buyer wouldnt have found without the wholesaler. This is not the case with a property that is on the market already.

Thanks Abel. I'm interested in the investment meet up. Is it in Queens? My mom stays by JFK so I'm often in NYC

Originally posted by @Abel Curiel :
Originally posted by @David Balogun:
Ah ok got it. Yea I wouldn’t want to promote the deal more so bring deals that may be out of town for a list of investors I know. So if I were to work with the listing agent it’s possible to do?


Originally posted by @Abel Curiel:
Originally posted by @David Balogun:

Anyone have experience wholesaling properties already listed. Thinking of finding investment property’s for out of state investors

Hello David,

Your best bet is to find the deal on your own before attempting to sell it to an investor or end user.

Homes that are already listed with a Realtor cannot be marketed to potential buyers UNLESS you have permission from the Realtor. 

Furthermore, if a Realtor cannot sell their own listing, chances are it is not a great deal or is not being priced/marketed well. That being said, if you wait for the listing to expire, you can try to contact the owner directly and find out if they'd let you market their home.

Best of luck to you moving forward!

Abel  

It doesn't make sense for you to partner with the listing agent. Mainly because they have a contract with the seller in which THEY are being promised a commission % for bringing forth a buyer. If you are bringing a buyer to the listing agent and you do not have a RE license in that state, it'll be tough to get paid unless you have a written agreement with the buyer.

There are plenty of other scenarios in which this "deal" could end up costing you a lot of time with NO guarantee for compensation.

I host an investment club meet-up in my market and I cannot tell you how many people have come to me to try to sell me on a "deal" that is already listed. It is very unfortunate because it isn't very practical to try to get a deal this way. In many ways, it is not even ethical. I try giving them my best advice but the cold-hard fact is that the same time they are spending trying to sell a property (without contractual obligation to the seller) is the SAME time they can put into cold calling, sending direct mail, and marketing for their own off-market deal.

Wholesaling is about finding property owners who have NOT yet decided to sell their property with someone, and having that seller trust YOU to sell it (or at the very least, assign the contract). Like I said, I unfortunately deal with this situation too often but if you'd like to connect and discuss further, I'd be happy to get into more detail with you.

Originally posted by @David Balogun :

Anyone have experience wholesaling properties already listed. Thinking of finding investment property’s for out of state investors

Anything is possible in real estate if you stay within local law guidelines and genuinely find pleasure in serving others.    In real estate, you learn to rule nothing out so although I’m closing on a “On Market” wholesale deal tomorrow, I’ll refrain from saying “16” :).  Maybe i’ll update this response once I do so tomorrow!  Like all deals, as long as you learn from your mistakes by mitigating risks and elements which are counterintuitive to your deal, along with firm follow up and streamlined automation, you can have a less hands on approach only if you delegate your disposition correctly and communicate  effectively!!!  Anyways I digress....

Question: Can one wholesale On Market Properties?

Answer: Yes Sir! I have conducted well over 15 on market wholesale deals successfully out of 18 in my career. Have a closing tomorrow 5/8/2020 which is a wholesale deal that was an on market property... 

Most will tell you know, because traditionally, as one should, to wholesale is to find off market properties and/or their owners in distress and who need to sell quickly. My team, as stated above, have done over 15 on market deals. You can search zillow or redfin your farming area (area you would like to wholesale). Then, you may want to filter homes for sale-Redfin and zillow should tell you the areas median price per square foot. That is the median of home prices (average median home price). This gives you a measuring tool. You base your properties of interest utilizing and property at least 25 to 30% below median price per square foot. For example, a neighborhood with a median of $225.00 per sqft you come across a home currently being sold for $73.00. You will then look at the description and you will find "keywords" such as "NO FHA or VA" "Needs TLC" " Owner Carry available" and/or "As Is" etc. That would back up your calculation. Watch out though, just because a home price seems low, may not necessarily mean it's a bargain. Always look at the sqft and price per that associated square foot. Once that figure is found, see how much that figure is high or lower than the median. Anyways, you most certainly can wholesale on market properties. I also wholesale bank owned properties using a kick a$$ method taught to me by my mentor that I'll share another day. However, on market deals offering structure is more quantity than quality. Off market you can laser target a home owners motivation etc whereas you have to work through a real estate agent on a on market deal.

I just go to me area and whether the home needs rehab or new construction, I go right down the list. A lot of investors ignore this thinking it's a waste of time, however you never know unless you ask- Send a quick verbal to the properties listing agent- give them a lowballed wholesale number (always ignore the listing price) and after plugging the ArV in the formula ARV x 65% - Repairs -$25,000= Max allowable offer

(the $25k is my standard deduction) 

Originally posted by @Jamie DeRossett :

Almost all realtor purchase agreements have a clause that says they cannot be assigned. 

 I have been a licensed Broker in the state of Massachusetts who also wholesales both off and on properties.  
That statement above is Incorrect! All contracts issued by The Board of Realtors are assignable. Only lender based contracts (such as REO'a and HUD homes) are unassignable.

Below is proof! Real deals 
Photo 1 Assigned the contract of Realtor 

Photo 2 Closed on foreclosed land 

On Market Wholesale Property I found and Closed on with spending $0.00 of my own money.

get your license and get refferal fee... Same idea less money they a whole sale deal but likely more deals.

and likely more legal/ethical but that's another topic lol

Good luck with wholesaling on market properties that is a great strategy and I am sure you will hear many success stories using that strategy. Thanks for the info Gary I will put that into my knowledge database. 

@David Balogun I have done this is my market, but you should keep a few things in mind. Know your market, know the laws for your market, and know your buyers. Some state contracts don't allow you to assign the contract and some do. But like everything else in real estate, there are ways to get around not being able to assign the contract. Also, some buyers don't like "on market" deals and some do. I have had buyers tell me they only want off market deals and I have also had buyers tell me that they could care less as long as it fits their criteria. I will say that on market deals can add a extra layer of its own issues, but it is definitely possible to do. You may want to start with finding a realtor that you can build a strong, professional relationship with and start from there. In my opinion, off market deals are better, but you can find hidden gems on the mls. Let us know if you have any success with this, best of luck!

@David Balogun Different people have different opinions on this. My personal opinion, based on 6 years of wholesaling experience, is that wholesaling properties that are listed is a no no. Wholesalers EARN their wholesale fee by marketing to distressed homeowners and finding great off market deals that an investor wouldnt be able to get without the wholesaler. This is not the case with a listed property. The wholesaler has brought very little value. An out of state investor could just as easily get on Zillow or Realtor .com and make offers on properties in any state. In my experience investors will still do their due diligence and discover the property is listed and then you run the risk of them contacting the listing agent and exposing what you are doing. There are so many reasons not to do this. Just my 2 cents.

Originally posted by @GARY LEONARD JR :
Originally posted by @Jamie DeRossett:

Almost all realtor purchase agreements have a clause that says they cannot be assigned. 

 I have been a licensed Broker in the state of Massachusetts who also wholesales both off and on properties.  
That statement above is Incorrect! All contracts issued by The Board of Realtors are assignable. Only lender based contracts (such as REO'a and HUD homes) are unassignable.

Below is proof! Real deals 
Photo 1 Assigned the contract of Realtor 

Photo 2 Closed on foreclosed land 

On Market Wholesale Property I found and Closed on with spending $0.00 of my own money.

 Come on, you all can't deny the confidence and credibility that comes with backing up big claims with stone cold DATA proof and evidence!

Bravo my dude.. BRAVO!

Jerryll you are right I was wrong on this one. I ask my wife whose is very sucessfull real esate broker and owns her own real estate company after I made the post a couple weeks ago as we are constantly talking about real estate because I appraise 7 days week and see buys and sells 7 days a week and we flip and we have buy and holds and she said that it say in our mls contracts that they can be assigned. She also said it is based on state law and allowed in KY. Being a wise man is being able to admit you are wrong and learn from your mistakes and I was wrong on this one and I will get my facts together before I post in the future. You got me on this one. Have a good day! 

Originally posted by @Jamie DeRossett :

Jerryll you are right I was wrong on this one. I ask my wife whose is very sucessfull real esate broker and owns her own real estate company after I made the post a couple weeks ago as we are constantly talking about real estate because I appraise 7 days week and see buys and sells 7 days a week and we flip and we have buy and holds and she said that it say in our mls contracts that they can be assigned. She also said it is based on state law and allowed in KY. Being a wise man is being able to admit you are wrong and learn from your mistakes and I was wrong on this one and I will get my facts together before I post in the future. You got me on this one. Have a good day! 

 First,  You are the MAN for being able to admit you are wrong.

But honestly... I never even read your response :P

I honestly simply admired him for not just making empty claims and back up clams with proof (I always do this and often people give me crap for it).. so that is why I said it...

My message was never aimed at you my good feller.

But again..

Hats off to you man, you absolutely are a powerhouse of honor.

We need more people like you.