How to wholesale property

Question

I’m currently have a FSBO that is selling a SF ranch in upstate NY for 65k. I have a few buyers and was thinking could I wholesale this deal and also collect a commission on the sale?

Tom Gimer · Answer

How do you plan to wholesale the deal AND make a commission? Sounds like a clear violation of the realtor code, regardless of who pays the commission.

I think you need to choose one method or the other.

Wayne Brooks · Answer

Why would you attempt to collect an assignment fee And charge a commission to the buyer?

If you’re thinking of charging a commission to the seller And wholesaling it, you are missing the basics of laws related to agents.

Barry Pekin · Answer

@Ronald Troy Whidbee,

I totally missed part of what you asked.  NO!  You cannot wholesale and act as an agent at the same time.

If you decide you want to wholesale, you need to disclose to the seller that you're an agent, but that you are not acting in that capacity.  I'm sure when you got your license, they explained how to purchase investment properties.  If not, go ask someone.

Jonathan Greene · Answer

All parts of this are bad. How could you wholesale and charge a commission, but also it's a FSBO and you haven't spoken to the seller. If you are licensed, you are in violation of many things thinking about this scenario, but more so if you are licensed, why aren't you just trying to get the listing or bring a buyer and collect the buyer commission that they are offering, which they are if you just ask what will you pay if I bring a buyer to the table.

Barry Pekin · Answer

@Ronald Troy Whidbee,

Of course you can.  Have you spoken to the seller?  Are they willing to sell to you?  Are the numbers good for a wholesale deal?

I can find hundreds of FSBOs and think they're all potential deals.  Step 1 - Talk to the seller to see what you can get it for.  Step 2 - Run the numbers.  If you can get that far and the numbers work, then you're on to something.

How to wholesale property

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