Can i Wholesale on the MLS

Realtor · Chicago, IL · Member since 2019 · 222 posts · 153 votes

I have a seller who is refusing to do anything except FSBO. He's offering it at a very low price (mother passed and he doesn't have the money to rehab it) and there seems to be a large margin there.

As a Realtor, if I get it under contract, can I then put it on the MLS to find buyers to assign the contract to?

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Mike CumbieBusiness Member

REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes

@Michael J Scanlon

Let me clarify as that was sort of an unfair answer.

What you have is a seller who will not list with you (or accept you as their fiduciary). However you should have a Boatload of investor buyers you can shop this house to. You will find one of them a hell of a deal because that's what you bring to the table (buyers agent). Also there is no competition from other agents (because it's not on the MLS). Work for your buyers here, because when they are done they will list it with you and you will be a Rockstar agent. If you try and weasel this one on your own you may win a little battle, but you will lose the huge war which is having people counting on your for the real deals.

Just my 2 cents and good luck!

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Mike CumbieBusiness Member
REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
6y
No.
3 Reply
Mike CumbieBusiness Member
REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
6y
@Michael J Scanlon
Let me clarify as that was sort of an unfair answer.
What you have is a seller who will not list with you (or accept you as their fiduciary). However you should have a Boatload of investor buyers you can shop this house to. You will find one of them a hell of a deal because that's what you bring to the table (buyers agent). Also there is no competition from other agents (because it's not on the MLS). Work for your buyers here, because when they are done they will list it with you and you will be a Rockstar agent. If you try and weasel this one on your own you may win a little battle, but you will lose the huge war which is having people counting on your for the real deals.
Just my 2 cents and good luck!
23 Reply
Michael J Scanlon
OP
Realtor · Chicago, IL · Member since 2019 · 222 posts · 153 votes
6y
@Mike Cumbie
“Weasel” isn’t a right term here Mike. Just asking a question here.
2 Reply
Mike CumbieBusiness Member
REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
6y
I apologize if that is what you took from my post.
Best of luck in your business.
10 Reply
Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
6y
a Realtor may have better/more accurate info but the only legal leg I see you have to stand on is he’s not your client, he’s just a guy selling a house by owner. I assume there’s a bunch of extra paperwork you have to sign with your offer saying you’re a professional (kinda the downside to being a realtor when buying as I see it).
If he was your client you might be in hot water but as long as none of your buyer clients are investors (where they might suddenly see you as a competitor taking the cream of the deals you find and leaving you) you’ll probably be ok. As long as the spread is small enough the guy doesn’t feel taken advantage of and sue or complain to the board of ethics that one of their professionals to advantage of them.
Ps. God forbid they’re a senior citizen.
2 Reply
Michael J Scanlon
OP
Realtor · Chicago, IL · Member since 2019 · 222 posts · 153 votes
6y
@Bill Brandt
The problem is that you can’t wholesale in illinois without a license so there is obviously a way to go about it. There’s nothing immoral about wholesaling, the guy has a price, he knows it’s low and just wants to get rid of it fast. I know the value is more, he knows it’s more, he strictly wants nothing to do with listing it.
I was simply asking if I can put it on the mls to find buyers to assign it to. Not sure why that triggered some negative responses.
2 Reply
Michael J Scanlon
OP
Realtor · Chicago, IL · Member since 2019 · 222 posts · 153 votes
6y
@Dan Sherry
Would love to work with you. I sent you a connection request
0 Reply
Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
6y
@Michael J Scanlon
“Wholesaling” is an “emotional issue” on BP!
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y
as you mention there are new laws in IL regarding wholesaling.. I would ask your broker for clarification and a clear path to doing this transaction..
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Bryan Johnson
Attorney · Chicago, IL · Member since 2019 · 41 posts · 35 votes
6y
@Michael J Scanlon
Michael, I would like to discuss this opportunity. Give me a shout. Thanks!
2 Reply
Account Closed
Wholesaler · Jacksonville, FL · Member since 2019 · 55 posts · 47 votes
6y
The best way to go about this in my opinion would be to get it under contract and then privately reach out to seasoned and reputable investors in your area. Present the deal well with accurate numbers such as renovation cost and after repair value. You have probably already seen some investors flipping houses in your area, these are the ones you should reach out to. You can also find other local buyers by typing in "we buy houses (insert city and state) on Google. If the seller is only wanting to do FSBO and is not wanting to list, don't act as a buyer and then do what they don't want you to (list their property). Simply get an assignable contract signed and then find an end buyer who can close fast, this way all parties win! :)
4 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
6y
Originally posted by @Michael J Scanlon:
I have a seller who is refusing to do anything except FSBO. He's offering it at a very low price (mother passed and he doesn't have the money to rehab it) and there seems to be a large margin there.
As a Realtor, if I get it under contract, can I then put it on the MLS to find buyers to assign the contract to?

Buy it and then sell it on the MLS. You can't just put someone else's property on the MLS without their permission.
4 Reply
Mark Johnson
Lender · Saint Louis, MO · Member since 2017 · 63 posts · 38 votes
6y
@Michael J Scanlon Do you know any good hard money lenders that work in the area? If they know the market and it really is a deal, there's a good chance they'll give you 100% financing. That way you can just purchase it, close in 7~10 days, and put it on the MLS the day you close on the property.
0 Reply
Mike CumbieBusiness Member
REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
6y
I'm sorry but I do not understand the interest in Wholesaling it as a licensed agent. There is zero gain.

One way (get him to list) you get him to allow you to put it on the MLS. No interior showings, 20% commission, no signs in the yard, make your flyers and go to town with marketing the property. If you fail to find a buyer, you still lived up to your end of the contract. If you find a buyer then you make 20% profit within the rules

Other way (Wholesale\assign). You put it under contract with him to purchase yourself. You can't market the property at all, you can only market the contract you have. If you can't find a buyer you are still obligated to buy or breach your contract. If you do find a buyer you may be explaining some things to your broker or the board but you get a 20% profit.

Other Other way (buyers agent): You find an investor buyer, get the buyer to sign a 20% commission agreement before showing him the property. Buyer pays your commission and you represented them instead of the seller. You get a 20% profit and did it within the rules.

Other other way: Buy it and list it, just make sure you have an addend that says "Seller is aware purchaser is a licensed real estate agent.
1 Reply
Greg H.Pro Member
Moderator
Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
6y
Every MLS I belong to has the requirement that the person signing the listing agreement must be in title to place on the MLS
3 Reply
Michael J Scanlon
OP
Realtor · Chicago, IL · Member since 2019 · 222 posts · 153 votes
6y
@Mike Cumbie
He does not want to list. I don’t know what to tell you here.
Why is wholesaling such an issue with you? If wholesaling was against real estate rules as an agent, why would the state of Illinois make it so that you must be licensed to wholesale? If only licensed people can wholesale yet you’re saying licensed individuals shouldn’t wholesale, then nobody can wholesale. But it’s fully legal so I don’t understand what your issue is here?
0 Reply
Mike CumbieBusiness Member
REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
6y
@Michael J Scanlon

Obviously you are not reading my posts, or reading them in a manner where you are taking them offensively. They are not meant that at all. I laid out 3 ways to do it as an agent making the exact same amount of money within the rules and without getting into a contract you can't perform on.

Go find a buyer. Get him to sign a contract with you that he will pay the difference between what you can get the seller to sell it for and what you think you can wholesale it for. Commissions are not set in stone. They do not need to be 3% they can be 20% they can be 50%. Buyer pays a legal commission instead of a "Assignment fee". If you take the extra step of getting it under contract yourself, you still need to find a real buyer who will sign an agreement for an assignment fee instead of a commission.
EDIT for Clarity: Commissions can also be a set amount 5,000/10,000/30,000

If you really want to take the extra step and liability of getting it under contract for yourself to purchase go for it, doesn't hurt me at all. You can either "Broker a deal between 2 parties" or become "a party" to the transaction with all of the responsibility that comes with it. The end dollar amount will be no different.

I honestly do wish you the best of luck in this transaction and am trying to provide you honest opportunities because you are a licensed agent. You can do things others can't (broker that deal). Since you are sure that what you are planning is 100% legal go for it. I still don't understand why someone would want the extra liability of being a party to that transaction instead of bringing two parties together for the same price.
6 Reply
David Slovak
Realtor · Mcallen, TX · Member since 2015 · 28 posts · 14 votes
6y
@Mike Cumbie
I appreciate the information you shared. This had been a reservation of mine regarding obtaining a license. Glad to know there are different avenues.
2 Reply
Brian Pulaski
Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
6y
Have you spoken to your broker? That would be the absolute first step here...
1 Reply
Randall Weatherall
Real Estate Agent · Memphis, TN · Member since 2019 · 261 posts · 253 votes
6y
@Mike Cumbie is giving great advice and trying to keep you in the clear. For clarification, there is a BIG difference between 'listing it' and 'marketing it.' Your seller really shouldn't have any issues with signing an exclusive right-to-sell from what we can tell form your post. His issue is it being blasted all over.
The only sticking point I can see is that your seller likely won't enjoy seeing the difference in your commission and his sales price being paid to you, but if you've done what you've said and he understands that he's selling super low, that won't be an issue I assume.
1 Reply
Jason Tanner
Member since 2018 · 9 posts · 14 votes
6y
Personally, whenever I found a deal they is lower than market I try and buy it myself.
Why don’t you buy the deal and flip it yourself?
If you are short the money, go raise money during the due diligence period.
If the deal is that good, raising money should be a piece of cake.
3 Reply
Nick C.
Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
6y
There are many hot button topics that illicit emotional responses one way or another - religion, politics, abortion, guns. But wholesaling is #1 on the list.
As far as your original question, no MLS is going to let you list someone else's property without their consent, and most MLS won't let you list unless you own the property. I'd have to agree with everyone on here- close on the house. Hard money, split the deal with an investor, whatever you gotta do.
3 Reply
Bob Prisco
Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
6y
@Michael J Scanlon why not just buy it , then you fix and sell, or sell as is, ?
1 Reply
Michael J Scanlon
OP
Realtor · Chicago, IL · Member since 2019 · 222 posts · 153 votes
6y
@Bob Prisco
I’ve got two other houses currently being rehabbed and I haven’t built a big enough team to where I feel as though I can take on a 3rd right now.
0 Reply
Bob Prisco
Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
6y
@Michael J Scanlon if its a good deal do it. Bring on a partner, never let money slip away. Heck just buy it and flip it . If its a good deal it will sell in a day.
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