Wholesaling - Realtors are your friends

Wholesaling - Realtors are your friends

Randy CharboneauBusiness Member
Residential Real Estate Broker · Grandville, MI · Member since 2016 · 109 posts · 78 votes

Hello!  Full disclosure - I'm a Real Estate Broker with 30 years experience so I'm writing this from a Realtor's perspective.

A lot of wholesalers I have met have a mix of experience.  Some have done dozens of transactions and they work pretty much like a Real Estate firm.  Others are a bit wet behind the ears and have very little idea when it comes to Real Estate contract law and title issues.  I recall one wholesaler I met who was trying to break into the business.  I offered to help him with his first deal for a fee.  He found a property and googled a contract and filled it out himself.   Then he hit a forum and found an investor who was willing to pay him $10,000 over the contract price!  Everything was going great the thought.  He didn't need me or anyone!  He was on the road to big time!   Well, the investor wanted the contract assigned over to him so the wholesaler transferred his interest.  Then the wholesaler decided to contact me to show me how great he's doing.  I looked over the forms and I asked him how he was getting paid?   He said "The investor said he'd give me $10,000 after he closed!".  Hahahaha!   I'm still laughing about that one.  That was an important lesson he learned about verbal vs. in-writing when it comes to compensation!

Realtors are knowledgeable about contract law and title issues and it makes sense to have them involved if you aren't 100% sure you know what you're doing.  Whether you're buying or selling or assigning its important you don't make mistakes and miss important red flags.  They will charge for their time and services but in the long run they are saving you money and you are gaining knowledge and experience from them that will help you make much more money in the long run.   Don't be afraid to work with one if your experience is lacking with wholesaling.

Some wholesalers are leery about working with Realtors to find buyers because they don't want another middleman dipping into their spread.  To avoid this, just explain to any Realtor what your asking price is and have them handle compensation with the buyer.   I charge a flat fee from buyers to assist them with wholesale deals in West Michigan and have wholesalers from Grand Rapids, Kalamazoo, Muskegon and other areas nearby just sending me their deals so I can push them out to my network of buyers.   Realtors are a great source for buyers so if you have a property you need to unload, don't be afraid to build a network of Realtors.  You're probably reaching 10x more buyers than you realize with every Realtor that gets your list!

If you have questions on Wholesaling and Realtors feel free to reach out and I'll be happy to assist!  It's a great partnership that helps everyone!

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Specialist · Member since 2021 · 267 posts · 113 votes
4y

@Randy Charboneau. I'm a wholesaler located in East Texas, between Dallas and Tyler TX. I currently have three realtors I work with but always interested in growing my network of realtors if you know of any one in this area, thanks.

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  • Investor · Atlanta, GA · Member since 2020 · 253 posts · 240 votes
    4y

    This isn't a secret among the wholesaling community. Realtors are a great asset to find cash buyers and do business with. Now if we can convince realtors and NAR that wholesalers can be their friends instead of the boogeyman that is stealing their commissions/ listing opportunities and deserve to be regulated to hell, maybe we can all get along here on BP.

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    There are MANY short-sighted investors out there, tripping over dollars in their rush to save pennies:(

  • Specialist · Member since 2021 · 267 posts · 113 votes
    4y

    @Randy Charboneau. I'm a wholesaler located in East Texas, between Dallas and Tyler TX. I currently have three realtors I work with but always interested in growing my network of realtors if you know of any one in this area, thanks.

  • Corey GrantPro Member
    Investor · Livingston, TX · Member since 2016 · 68 posts · 17 votes
    4y

    Is it possible for a realtor to post or advertise an assignment of contract on the MLS? I have a house under contract and it is a MAJOR fixer. The seller hasn't moved her items out and won't let me advertise it yet so I'm on hold with it. But in the meantime I've shown it to a couple of investors and agents I know, and I have not gotten a warm response because of the condition it is in so I'm concerned that it may be difficult to move. With the hot market and people buying over appraised values, it seems like a good idea to get it in front of as many people as possible and that is what is great about the MLS. Thoughts?

  • Randy CharboneauBusiness Member
    OP
    Residential Real Estate Broker · Grandville, MI · Member since 2016 · 109 posts · 78 votes
    4y

    @Corey Grant - It depends on the rules of the MLS. Typically, the MLS requires you to own a home and sign a listing contract with a Realtor member before you can place it on the MLS. However, there are some exceptions and they vary. Most MLS are part of a Realtor Association. Your best bet is to call around to the different associations and see what the rules are and if you find one that has the exceptions you are looking for, choose a Realtor that belongs to that association and work something out so you can get some exposure. The other option might be to advertise directly on some of the larger Real Estate sites on the Internet such as Zillow or Trulia. These large Real Estate websites reach a ton of people. Check the rules for each site and see if they allow non-owner advertising of homes. Another possible option would be a local Renter Owners association. Lots of investors belong to these and they sometimes have meetings you could possibly attend and broaden your investor buyer pool. Those are places I would start. I wish you luck!!

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