How do i close a wholesaling deal with a realtor?

Question

I negotiated a deal on zillow with a realtor and the realtor ask me for proof of funds,do i be honest and tell her im a wholesaler and not a buyer?

Michael Ablan · Answer

@Tracy Mooring -  If you don't have the means to close this property then you shouldn't even be involved in it to begin with.    You're wasting everyones time and money if you enter into a contract to purchase without the ability to fulfill that contract.

Joe Norman · Answer

You should not enter into a contract that you can't close on.  Even if your intention is to wholesale it, your fall back plan should always be honor your commitment as documented in the contract.  "Investors" who do this, and then ultimately don't close, give all of us a bad name (and waste our time).

When in doubt, be honest.

Tracy Mooring · Answer

@Barry Pekin

Thanks Barry

Barry Pekin · Answer

@Tracy Mooring,

I'm not going to second guess others who are successful, so this is more my opinion than anything else.

It's not so much that it can't be done.  I just don't think it's where we should be working, where we can find the best deals, or where we can be of the best service.

Tracy Mooring · Answer

@Barry Pekin

Thanks for this answer the reason i posted this was because i execute deals on my own but i saw a video on the wholesaler khang.he mentioned he wholesale alot of deals with realtors.i thought this might be another avenue to wholesale.

Barry Pekin · Answer

@Tracy Mooring,

When wholesaling, you should be completely transparent.  If you're working through a realtor to re-sell a property they are currently listing, and you don't have a means to execute that deal quickly, then you shouldn't be making that offer.  After all, the seller already has someone working for them to get their property sold.  The only time I would work with a realtor in a situation like this is if I wanted to personally take ownership of the property.

If you're wholesaling, your best bet is to find off-market properties.

Jim S. · Answer

I would agree with what everyone else has said.  If you can't close on this deal then you're doing a tremendous disservice to the seller.

As a side note, I should also mention that if you are trying to wholesale a deal that you're buying on the MLS then you're probably not going to have much success as it's not very likely there will be much "meat on the bone" in this deal.  This  would ultimately lead to you not finding a buyer and having to back out of the deal which comes back full circle to doing a disservice to the seller.

I'm sure these aren't the answers you were looking for but they're honest ones.

John Thedford · Answer

If you fail to disclose that you have no intention of closing that is called fraud in the inducement. That is EXACTLY what is wrong with most unlicensed brokers. Operating like that harms sellers and in general, is BAD for the public interest. Last but no least there is NO honest or ethical way to bend and break laws working as an unlicensed broker. Either you have the education, testing, ethics, license, morals, insurance, etc or you do NOT.

How do i close a wholesaling deal with a realtor?

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