If the owner and resident isn’t the same and a agent is on the listing do I pursue a deal with the agent or am I not suppose to do that as a wholesaler? Is it better to have a agent on the list so they can represent and make a higher commission?
The owner most likely is in an exclusive contract with the agent so including them will be a necessity, but in my opinion you can make a deal with the owner you just have make sure that you factor in comission for the brokerage. If he has a copy of the agreement, check that for exclusivity and commission rates. If you and the brokerage have no connection and the listing is expiring you might be able to wait till then. I'm not sure the legitimacy of that though.
@Shayanna Lee As a wholesaler I personally stay away from properties that are listed with an agent. If the seller has contacted you I would let them know you are interested in purchasing the property but you would prefer to deal directly with them and not the agent. Let the seller decide what to do from there.
@Lydia T. I ran into the problem and froze thank you I’ll make sure I take that into consideration
@Shayanna Lee No worries! That definitely happens when you are new. There are a few reasons that I advise new wholesalers to stay away from listed properties
1. The sellers usually want retail pricing or close to it
2. Listing agents are going to ask you for a verifiable POF before they present your offer to the seller
3. They will not allow you a lengthy due diligence period
4. They will expect a sizable amount of earnest money when the seller signs the contract. Lots of guru wholesalers will tell you to just use the buyers funds for your emd but when the property is listed this becomes a problem for a couple reasons— You have to have the EMD deposited within a certain number of days after signing the contract, which means if you are trying to use the buyers funds then you would have had to share the address with the buyer so they could decide that they want the property prior to you having the property under contract. When the buyer does their due diligence they will see the property is listed and there is nothing to stop them from calling the agent and asking if the seller has accepted an offer. Since you would be waiting for the buyers funds to use as EMD the property isnt under contract yet and the agent would respond to the buyer and say no the seller is still accepting offers. The buyer could make the seller an offer a couple thousand dollars higher than what you are offering and boom, youve lost your deal. So for these reasons I tell wholesalers who are just getting started to focus only on off market deals until they have the capital to pursue other types of properties successfully.
Just some friendly advice from someone who has been at this for over 6 years. Feel free to reach out if you have other questions or need help with anything!