Need some help with possible wholesale deal

Hi everyone!

I have a friend who is a realtor (I am also a realtor) who placed an ad looking to buy houses himself. The ad included his license disclosure and he quickly received a call from someone who has a piece of vacant land listed with another realtor. He said he is desperate and wanted an offer right away. He has the plans ready to build a 2-family home. He has the land listed for $75K. Buyer offered $40K and received a counter offer of $55K. The seller was told to give him a couple of days and he’ll get back to him.

Yesterday, apparently he placed an ad asking for $57K and found 2 buyers interested. One seemed very serious and wants to go by on monday or tuesday and place the offer. The new buyer is aware that my friend has a real estate license.

Now my friend does not know what he should do as he never got the property under contract. He wants to go back to the seller and get it under contract for $54-$55K and assign it to the new buyer. He would make more money that way than as a realtor. He is asking me for advice because he is afraid that the new buyer will not close and he will get stuck with a vacant land that he does not want.

I have told him to represent the buyer as a realtor, but he wants help from someone who has actually done wholesaling before. I would have just gone and put it under contract first and then go out and find someone.

Any advice? Thanks…

If he doesn’t have it under contract, he doesn’t have control and probably his best bet is to work as the buyers agent. Also, it doesn’t sound like there is too much of a profit even if he assigns it so I’m not sure it’s worth going down that path.