All Forum Posts by: Karl Krentzel

If you are an agent... IMHO.. If you want to earn extra money aside from the listings, and sales that you are ordinarily making.... wholesale. 

As an agent, you are in a POWERFUL position to wholesale property on your own.  

With the access you have to MLS, other agents, as well as the populace expecting you to find great deals, you have (again, in my humble opinion) an obligation to wholesale. 

Happy Sunday agents! Are you interested in adding Investing (particularly Wholesaling) to your business in 2015? 

Here is a complimentary Webinar we are having outlining the 

Step 5. Writing the Contract is where I start showing how I negotiated the actual deal btw... 

Ok, this is an insanely bad video of a deal I did, I was making it for some friends to see so they could understand How to Flip A Short Sale.  

It's probably hands down the WORST video I could possibly make because I did it with an iPhone and a scratchpad. LOL... (what a noob)... but I saw your post, and it reminded me of this video series I did a long time ago for a YouTube Channel... 

Please don't troll me over the quality.. LOL... it's just a great story about how I wholesaled a short sale MLS property for 10k profit and how the price was 200k something and I got it for 110k...

If you can stand the fact that I made the video a long time ago, and my stick figures don't aggravate you too much, I hope it helps!

Have a Powerful Sales Day!

k

New to wholesaling?  A Realtor®?  There are practically no resources specifically in the market today designed for your specific investing needs as a Realtor®.

If you are smart, you are probably thinking about the legality, as well as the ethics regarding wholesaling or "assignment of contract" as an agent.

The good news is, as a practicing Broker, Wholesaling Investor, Podcaster and Coach, I have a lot of experience in the matter that I am happy to share with you!

In a COMPLIMENTARY Webinar, entitled "The Top 5 Dangers As an Investing Realtor®", you will definitely walk away knowing exactly how and what the Code of Ethics, various Statutes, as well as Standards of Practice will say to  help you. (That's right... HELP you!!!)

Don't worry, I won't bore you to tears, or sell you a bunch of crap.  I want you to feel comfortable knowing you can do it legally, and then think about our podcast and blog favorably after that!  

So no hard sales, just a typical Wednesday educational webinar that I typically hold... just in this case, it happens to be about my Realtor® Friends! 

Sign up today to reserve your copy of this webinar!  If you can't attend it, it's cool.  The system will simply send you a copy!  Reserve your space now, so that you get your copy, and I hope to see you next Wednesday! 

Have A Powerful Sales Day! 

k

 That is an AWESOME question @Kahil!

At the risk of sounding "Promotional" let me briefly summarize my beliefs as succinctly as possible!!

• In and TenMinuteSkill  I teach that wholesaling (aka "Assignment of Contract") should be a part of every Realtors® "toolbox" of skills.
• For Realtors®, the Code of Ethics is very clear.  We have a responsibility to disclose the true value of the home (as we see it) along with any other material facts that someone with our "expertise level" would ordinarily disclose. (NAR Code of Ethics Article 2) 
• Since our obligation as Realtors® (again, only Realtors®, not all AGENTS) is to disclose all facts that are material and pertinent, and not to remain silent or exaggerate certain facts (again, article 2) that APPEARS to be in conflict with your ability to negotiate fairly on your own behalf.  However, that is only an appearance.
• As the truly motivated homeowner is not always interested in the "highest netting offer" (i.e. estate sale, pending foreclosure, divorce, etc) then the values of other "like property" that you disclose are virtually irrelevant as they were listed, and took time to sell.  Not to mention the accompanying closing costs, repairs, commissions, etc.
• Your job now becomes one of the "Educating professional investor."Letting them know that ..."while that it may be true that the house on 123 main sold for x...  and yours MIGHT be worth X if you had the time to sell, in this case, because I am offering all cash, taking it as is, closing when you want to, waiving all my commission, and paying YOUR closing costs, I am only willing to pay Y."
• Since the value of a home is ONLY what a READY, willing and able buyer is willing to pay a ready, WILLING, and ABLE Seller.. then it is irrelevant what Mr. Smith sold his home for down the street.  My obligation is to TELL you about it.  But what WE agree to.. well, that is something different.

To answer your question about wholesaling being a "niche" market?  No.  

What I teach on the podcast and in the blog, and books, etc. is the following....

You are the Buyer.  When you act like the Buyer first, instead of the Agent, then your rights are expanded, your options are plenty, and your profits expand.

Wholesaling is the beginning, and the end of the real estate transaction.  Buy and hold is great, rehabs are awesome... but give me a great wholesale deal that is super quick, and super easy?  I'll take a quick nickel instead of a long dime ANYDAY!!! 

Thanks for the questions, and sorry for the long winded answer!!

Have a Powerful Sales Day!!

k

LOL... I feel your pain!  TONS of information on the web these days!  

I wrote an article in BP expressing my frustration at the same issue myself just a few days ago....

"Why Don't More Realtors® Wholesale?!"

Most of the time, it seems, is just because we don't know that we can!

Have a powerful sales day!!

k

Short answer?  It depends.  

It depends on a couple things.  First, if you are truly assigning it, and NOT double closing... then the ASSIGNMENT Fee is NOT generally split with your broker as it CANNOT be.  It is a PERSONAL Property issue.. Much like you finding, and selling a car.

However, if you double close the property, then a fee could be due to your company depending on your CONTRACT with your company.  Your company may say that if you have your OWN transactions, you will need to pay a certain amount....  

A "Net Listing" is NOT the same as a wholesale deal.  In a Net listing, you are signing a LISTING Agreement with Fiduciary responsibilities.  NOT as a principal to the transaction.

IF signing a PURCHASE contract, then you have a different kettle of fish.  

Make sense?

k

• Article 4 and Article 7 of the NAR Code of Ethics (with respect to who gets paid, when where and how; along with disclosure of your true position in the transaction)
• True disclosure of the property's real value (Article 4) 
• Disclosure of your Agency Status (working on your own behalf, NOT as a Fiduciary to the Seller) (State laws, Commissioners Rules, National Association Rules, etc)
• A State Contract (Considered a "Standard of Practice" for use by Realtors® when purchasing property, so I'd be hesitant to use 2 page internet contracts)

There are a TON of blogs, podcasts, and other resources available to the agent who is looking to learn how to wholesale or add wholesaling to their repetoire of services! 

Congrats, and let me know if I can help! 

Have Trouble Organizing?  

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I'd like to offer to you a complimentary downloadable!  

"The Ultimate Sales Pro Financial Organizer!"

This Excel spreadsheet comes complete with pre-set tabs for rental income, personal expenses, property commissions, closings and more!  

Please consider this a gift from your friends at the Ultimate Sales Pro System!  

Have a Powerful Sales Day!!

Karl