How Do I Compensate The Buyer's Agent - Wholesaling

Question

Let's say an agent brings me a cash buyer and I decide as the wholesaler to pay him/her part of my wholesale fee, how exactly do I compensate the agent or a better way to phrase the question how does title know to pay the agent? Will I need to have an agreement between me and the buyer's agent along with instructions on how to pay the agent and if so what type of agreement should I have with the buyer's agent. Hopefully, my question makes sense because I could really use some help with the one.

Kenneth Williams · Answer

Here in Memphis as someone who will normally represent the investor. I will add my fee on top of the wholesaler's promoted price. Hope this helps.

Alex Verdugo · Answer

I'm sure the agent is going to make sure they get paid.  Maybe you should ask the agent how they normally handle these types of deals, what their percentage is and when they get paid.

Anthony Street · Answer

@Alex Verdugo

Okay, yeah that actually sounds like a good idea. I think I’ll just do that, thanks!

Anthony Street · Answer

@Kenneth Williams

Thanks for the response Kenneth!

Is there an agreement that you sign with wholesaler though stating that you should be paid and if so what type of agreement is it.

I ask because I’m unsure as to how title will know to pay the buyers agent. Hope that makes sense.