All Forum Posts by: Myles Kamara

I'm currently working with a realtor on a property that I'm planing on wholesaling and wanted to get opinions and advice on how I should proceed. I've done my research on how one can work with a realtor but since this is my first time and potentially first deal I wanted to reach out to hear the opinions and advice form other who either have done it before or are realtors themselves. My biggest concern is honestly finding cash buyers who would be interested in buying a property that's on market since I know most buyers target off-market properties. Thanks for the feed back!

From what I can tell, you're trying to make a deal work. Learn how to find off-market properties first. I'm not saying you'll never find something on the MLS that you can wholesale, but if you can find it everyone else can find it. And if you're the offer that's accepted, why weren't the other buyers offers accepted? Maybe they didn't offer high enough, which leaves you holding the bag.

Too much risk for me.

I only target properties that where listed within 2 days in hopes to be the first person to give an offer. The only real snag i've hit with this strategy is acceptance of offer price since its much lower than what they are asking for or sellers changing their mind and pulling the property off the market.

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Baton Rouge, Louisiana

Quote from @Duncan Hayes:

@Myles Kamara best advice you’ll get for wholesaling a deal you’d use an agent for; DONT.

Even if you got around everything that all the folks before me mentioned, realtor’s commission will cut into your assignment fee and the end buyer’s profits. Unless there’s some HUGE spread, leave it alone.

Wholesaling is meant for off market deals. The deals that can't be listed with a realtor. Every blue moon you may find something worth wholesaling on the MLS, but it's highly unlikely these days if you ask me.

My assignment fee has nothing to do with what an agent gets paid since their commission comes out of the sellers pocket. what ever offer the seller accepts determine the commission of the agent, whatever price I add onto the assignment is between me and the end buyer.

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Baton Rouge, Louisiana

Quote from @Jonathan Greene:

You can't work with a realtor to wholesale a property because you will never have ownership and therefore can't have them list it unless you use a novation agreement, which most states don't allow. What role is the agent playing? I don't really understand what you are trying to do here.

I'm using a relator to make offers on properties. An accepted offer gives me an equitable interest in said property which allows me at least in my state to advertise it.

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Baton Rouge, Louisiana

Quote from @Michael J.:

Quote from @Myles Kamara:

You are submitting an offer on a house through a realtor and then wanting to assign your contract to an end buyer? This can be tricky to do, especially if the realtor doesn't have a clear understanding of what wholesaling is. Also, you are going to need to get the property at an extremely lower price than what its listed at on the MLS as all the investors have already seen this property. Some other issues, you will need to make sure the contract the realtor is using is assignable, gives you plenty of time to do your inspections and allows you to put your EMD down after your inspection period.

The agent I'm dealing with is familiar with what I'm doing and I already did my part to make sure the contract falls in line with what I need, but I didn't factor in investors might have already seen said property since all i'm hearing from ppl on this is that they typically don't deal with or even look at properties on the MLS. Thanks or the word of advice it was helpful and something I will keep in mind moving forward.

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Baton Rouge, Louisiana

Quote from @Will Barnard:

Quote from @Michael Dumler:

@Myles Kamara the reality is properties listed on the MLS are not wholesale deals, hence, why most successful wholesalers go under contract on off-market properties. Furthermore, a good listing agent is not going to mess around and will certainly ask for POFs. Maybe have your real estate agent send you expired listing that you can target. I'm still not sure how you would bake their commission into the assignment of the contract, that's outside of my wheelhouse. Hope this helps!

This is a good answer, wholesaling is all about finding a motivated seller so you can purchase a property for well below existing current market value and pass most of that value off to the investor buyer and you keep the other (albeit most wholesalers seem to be greedy these days and want to take the lion's share of that spread).
If you are attempting to do your first wholesale deal, then working with real estate agents on listed properties will likely have you spinning your wheels.

To answer this question above, "I'm still not sure how you would bake their commission into the assignment of the contract, that's outside of my wheelhouse. Hope this helps!" - The agent's commission would be paid out of the seller's side of the transaction as would be the case in just about all transactions, your wholesale fee would be paid by your end buyer.

Your biggest concern of finding cash buyers - this should be your least concern at this point as you clearly need more education on these transactions before proceeding. Finding cash buyers is the easiest part of a wholesaler's job which can be done by getting a list from any RE agent or title company of all cash closed transactions in your target areas where the buyer was an entity and that entity purchased at least 2 deals in that calendar year. There is your proven cash buyer, rinse, repeat and make contact with them. The most difficult is finding the real deal which is a marketing issue (wholesaling is a marketing business, not real estate investing no matter what the gurus tell you).

So far everything has been pretty smooth for me, I haven't hit any snags and I've been pretty transparent with the agent I'm working with. The reason I'm concerned about the cash buyers is because I have seen a hesitancy to deal with properties on the MLS by buyers with no real explanation of why.

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Baton Rouge, Louisiana

Quote from @Michael Dumler:

I have a very specific criteria of properties that I target so that the numbers make sense, I've already mentioned to the agent that I'm going to assign the property if the seller accepts my offer and we are currently waiting to hear back from the seller on my offer. I like the idea of going after failed listing, I haven't thought of that so I'll mention that to them as an option. I'm pretty sure their commission is only affected by the price accepted for the property by the seller so whatever I sell the assignment for shouldn't have any bearings on their commission.

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Baton Rouge, Louisiana