All Forum Posts by: Juan Michael

I used to write 30 -40 per week based solely on MLS searches. Now I'm down to about 2-5.... I discovered it's important to see and walk the property first. what started to see is that, as i would get accepted offers..... I'd then walk the property and find the repair costs were well out of budget. Then I'd have to keep going back for price reductions or just walking away all together. Poor use of my time. Now the ones that get accepted, i can close and i know what my cost are.

Mike... on an REO ? who pays commission ? on a MLS listed property ? Maybe we are talking semantics....... The Listing Broker pays a portion of his fee...... but on REO's ... THE BANK

I disagree. The investor does not pay out of pocket.... yeah maybe he can.. negotiate a few k off the price.... but is it really worth it. OK !! FREE TO THE INVESTOR'S front end cost.... Realtor does need to earn it..... I hope I cleared that up

Look at it this way Shane............ Commission is FREE MONEY.... The seller and or REO Bank pays that.... So give the Freebie to the agent.You get the property.... If the agent is like me... they are going to do 90% of your Due Diligence anyway... after a while, they will get to know EXACTLY what YOUR formula is.... Then when it comes to you... your work is done.... just verify pretty much. Save your cash.... Now if you choose to get into wholesaling..... let the agent do the contract... take commish.... you wholesale.... take the fee.... and you make a few K for just filling out paperwork..... how cool is that ? Now the agent is motivated to find quick deals along with their normal clients..... these deals are usually 15 days or less...no lender hassles. And if the agent is good.... let them sell it on a sliding scale.... something like this( 5%...with 3% to the buyer side.... or 4% if they bring the buyer )..... Just a thought. My uncle once said " Never take all the money off the table... when everybody eats well...it breeds LOYALTY. Stinginess breeds envy and distrust.... Good Luck to you

as a realtor........... I bird dog. I take the commission on the purchase side... Prices here in Cali make that... OK! for gas and golf money :-) .... Then i negotiate the listing on the back end.... if they wholesale... then i have my own buyers list as well and get a piece of that.

The KEY THOUGH : Find a realtor who understands how investors think and are willing to fire the offers out.Most Realtors treat investors like buyers.... then to them it's too much work. Me ! i like the trenches and it has been a wealth of knowledge gained... as i will begin to do my own deals next year..... have connected with a host of private money sources over the past 2 yrs.

Will is correct and that is the preferred method.... However i have found success in searching the MLS for deals for investors and collecting the front side commission and letting my investor wholesale it..... in my case however ... i also have a list of investor/buyers which allows me to collect a percentage of the wholesale fee. Will however is sorta locked in HIS process :D and it works for him. I can't make a dime with him :lol: But both options are workable. Just remember to look for an experienced realtor that UNDERSTANDS the wholesale game an the INVESTOR thought process.... I am ashamed to say that there are a great many realtors that have no concept of it. Did I miss something Will ?

Realtors commission don't need to be calculated in the offer price unless you are dealing with the seller directly and you are just using the realtor as a resource. Even then that would be paid outside of escrow... so it would need to be considered in your bottom line expense numbers. What the seller owes can usually found on title report.... keep in mind that any hard money 2nd's or 3rd's unrecorded will not show.... They should appear on the Prelim.

The realtor commission is usually paid by the seller... When I place an offer... the commission is set in the MLS... only when you deal with a seller directly ( For Sale By Owner ) then a realtor will cost you extra. I search the MLS or deal with pocket deals.... So there is a way for me to get paid. If the commission is low or limited then I negotiate an added fee with my buyer.... on a deal by deal basis.

I find that to be very Frustrating as well.... After a few days... you end up getting your own deals back 40k higher than you initially offered it

[1. realtor has you sign a contract with seller
2 you look for someone to buy your contract
3 sign an assignment of contract with them and sell them the original contract.
4. the deal closes with the individual you sold your contract to. The realtor gets paid from closing just like normal]

That pretty much sums it up Rob

:D