How to wholesale when the property is listed with a realtor

I found a property that is listed with a realtor, but not on the MLS, and I want to make an offer. I am a little hesitant because I have not had the best experience with realtors once they find out that I am a wholesaler. I have not told the realtor that I plan to wholesale the property- I suppose I think once she knows she will make the deal impossible. For those of you that have been able to wholesale a property that is listed with a realtor I would appreciate any advice you can provide…


If you look at the asking price and condition of this property is the asking price at FMV? Below FMV? 30% below FMV?

What is the condition? Is it in great updated condition with no deferred maintenance? Is their minimal deferred maintenance?
Does this property need updating? Have a large amount of deferred maintenance?

These details tell a lot about the owners thinking! If the property is pride of ownership, well taken care of and has been updated then the seller and their agent are not looking to even think about below FMV offers! If the property is in overall good condition, has minimal deferred maintenance and although does not meet our ideas of a updated property, the property is clean and in move in condition, then the seller is not likely to except a wholesale offer 30% below FMV and the real estate agent is paid to provide advice about the market and financial conditions to get their client the best offer!

Now if this property is distressed, has been poorly maintained and has deteriorated into a property needing thousands or tens of thousands of dollars in repairs then a wholesale offer may be reasonable!

Wholesale 30% below FMV repairs / rehab cost Carrying Cost & Overhead your profit margin so if you think this fits by all means make an offer.

Make your offer John Doe and supply a standard mortgage pre-approval then find your buyer, get a second contract as your going to need to probable use transactional funding to close to you, then close you to your buyer.

Make sure once you have a buyer you get their escrow started by the same escrow / title officer parallel to your first transaction, get an investor discount and ask for a hold over (Open) title insurance policy which will go from you to your buyer without paying twice.

Make sure you have a property inspector and Termite / pest control inspector who once paid will also supply these reports in your end buyers name and it will help to have the appraiser act as though he’s representing you for your end buyers loan appraisal.

Now your going to need to do this quickly, in a 45 day escrow period your going to only have about 5 to 8 days before your buyer will need to have their lender start working this deal to close!

Now you will supply a standard loan approval letter for your offer but substitute your transactional funding lender in escrow, your not going to say anything to the listing agent and if asked your using a private lender! You should probable use your own agent / broker to make your offer and represent your interests.

Good luck,


Hey Eli,

I’m going to make this real simple for you. You don’t have to tell the Realtor what your intentions are to do with the property.

The way to get around from doing that, is simply double close with your end buyer using a standard As-Is contract.

Now hopefully they don’t have a designated title company or closing attorney they are using. If they don’t even better for you. Now you can designate your own preferred title company and let your title company know how you want your deal structured.

Go get em’ :smile

Well I made the offer to the agent and she told me the property has been appraised for $230K (which is much more than what I offered for the property). The agent said the seller may not take less than the appraised amount. The house needs A LOT of repairs the ARV is 347K…should I walk away from this ? The house has been vacant for more than 2 years and the seller lives in another state…any advice for a newbie wholesaler ?


If your sure the property is worth $347k then:

$347k minus 30% minus rehab costs minus carrying costs minus purchase costs minus purchase price minus your profit if your wholesaling this = $000,000 actual purchase price. If your fixing it your self and selling retail then you already have a profit in the 30%.

$347K minus 30% = $242.9k What are the other costs?


Gold River is giving you good advice.

If you feel that your offer is OK, then tell the realtor to submit and get a WRITEN response from the seller.

The realtor probably has instruction from the seller…no low ball offers…etc…HOWEVER if it has been vacant and the owner is motivated…anything is possible.

Look at it this way. The absolute worst that can happen is the seller says NO.

You do not go to jail and you do not pass GO,but you tried!

You do not get UNLESS you ask!

My advice though to late now but something for next time is talk directly to the seller, forget the agent, you are not breaking any laws or rules unless you are a licensed agent. Tell the seller to make a date for the agent and you to meet at the sellers and you are going to present the offer directly to them then. I have never know a seller to say no and if they do just say thanks for you time, that is the way I do business, I will however mail you an offer for your consideration that you can go over with your agent…

One thing to check with the seller is to find out what type of listing they have, some give the seller the right to sell without a commission but if the offer comes in through the agent the commission is put into play. I am still a broker and know some agents are really not to bright, and others have a doctor complex and are always on their pedestal and don’t like it being moved because you entered their kingdom, and they like to proclaim how things will be done in their kingdom.

I agree if I was able to speak with the seller I would prefer it. The agent called me and told me the seller is now thinking of renting the house until the market comes back so she can get full asking price for the property. The house is in NO CONDITION TO RENT OUT, unless she is willing to do repairs on the property.

The seller lives in another state and has not seen the property for several years, but, she is suppose to view the property this weekend. The agent is to call me next week once the seller has a chance to see the condition of the property.

What is the average earnest money deposit for homes listed on the MLS ? The agent told me I need to put down 20% of list price for earnest money…I heard of wholesalers putting down $10 for earnest money deposit. I guess that is out of the question for MLS properties…

How is it listed and is not on the MLS? First make sure that its an active listing. If its not, then contact the owner directly.

Alot of Realtors have pocket listings. They are not put on the MLS. Some sellers don’t want their listings on the MLS… WHY? I don’t know but it happens.

Little off topic here form a newbie looking for some advice, So I can give an offer to a house that is listed with a real estate agent? and they might still consider my lowball offer of 65% off minus repairs and my assignment fee? and to do this All I have to do is give an offer and if they accept just do a double close with my end buyer??? :help