Okay, we just go in order.
Steph, all markets are different. So, yes, our markets may be entirely different. That said, if there are “tons” of REOS being wholesaled (that is bought by investors flipping to other investors) then either your market is flooded, the agent’s aren’t doing their jobs, or you simply have alot of lazy investors.
No offense, but if a property is sold through the MLS at the highest price for the condition (the purpose of selling through MLS) and/or timeframe needed, and it’s available to any investor with a decent agent, how can a wholesaler, on a regular basis, be buying up properties with enough spread in them to resell to another investor? Yes, it does happen, but if it’s happening alot, then something is wrong somewhere.
As to RE license and wholesaling, didn’t say that people wouldn’t do it. Simply said that there are too many issues (at least for me) to do with if you’re trying to flip a CONTRACT as an agent. Now, buying a property and then reselling is a different story, though it could still have issues.
raquel, too much to get into there, but safe to say that if we’re answering basic questions on wholesaling, we’re no where near ready to move to “getting around” the contract.
Eric, I agree that absolute answers are suspect. However, that said, my answer wasn’t that realtors fit in “no where” it was that they should NOT be involved in a wholesale deal, at least as described. And as both an investor and a Realtor, I believe that I have experience in both sides. Since there seems to be some confusion, I’ll simply answer the questions asked rather than getting to the real root of the problem.
For example, with REO’s, does the banks realtor get commission from the transaction? or are they being paid in other ways?
Yes, the bank’s realtor gets paid a commission from the transaction as outlined in their contract. No they do not get paid in other ways.
Also, it seems that a wholesaler, like a realtor, is nothing more than someone who connects a buyer and a seller (with a focus on distressed sellers and investor buyers). If a wholesaler has a realtors license, can they earn a traditional commission from the sale?
Having been both, I’d say that there is a vast difference, but not the time or place here. Yes, if a wholesaler has a RE license AND is working as an agent during the transaction they could earn a traditional commission as well. Read previous posts for problems associated with.
Raj