I am working on getting my 1st wholesale deal and a few people have said to work with an agent others say work with FSBO only ? Do I need to work with a RE Agent to do wholesale ? What are the Pros and Cons ?
Pros- MLS acess is big in REI
More familiar real estate in general
Cons- You might have to cut them in on some $ for them to actually help you
Working with or without a agent isn’t a big factor, MLS is big, but you can do without. So no you dont NEED a agent, but it may be nice.
If you want you can just become an agent yourself, that’s what I did just passed the exam last week. Takes about a month in Missouri, and you learn ALOT from the courses that you take about real estate, youll learn everything you need to know. And you get your own access to MLS which is big too.
As far as FSBO, from what I have learned they are cheap people that don’t want to lose 6% fee to an agent so they try to sell there own property. Usually they don’t no what there doing and they have most of there properties for way above the actual value of there home. Of course people want more money for there home then what its really worth. So I’d stay away from them too. But who knows there might be a small chance that you’ll run into a FSBO property and there actually in need to get rid of it fast, that’s where you’ll step in.
What have you read or studied? That will tell us more about what you understand/
The expert real estate agents always help you in finding a good accommodation or properties because they have complete knowledge and info about real estate and properties available for sale or rent.
I have read that a RE agent will assist you with locating deals on MLS, putting your offers in and being able to pull the recent cash buyer info from the MLS. But, I have been trying for a while to locate an agent that works with investors and I have not been able to find any…most of the ones I have spoken with are not interested in putting in multiple low offers and having 1 or 2 accepted. I don’t want my not having an agent stop me so what should I do? Keep looking for an agent or skip the agent? If I don’t have an agent to work with could I put in my own offers (contract) on a property or is that done only by an agent ? An investor friend told me to call an RE agent offices and have them place me on the autolist for the MLS where I will be getting listings everyday and I would not wait for an RE agent to provide me with the MLS Listing ? Has anyone ever heard of this or has signed up for it ?
The auto list is a portal that RE agents have with thier MLS system that alerts you everytime a home is listed in your area of interest with your specifics. Being on a auto list is a great thing for investors that are not RE agents or have access to the MLS.
If your wanting to work with an agent, find out who the REO listing agents in your area are and go directly to them to make your offers. 1# They are the listing agent and will work harder at getting your offer accepted because they get both sides of the commission. 2# They usually (not always) know about what it will take to buy they house simply because they are in contact with the asset managers and have a personal relationship with them.
I finally had one agent contact me and she siad she would work with me but wants a 30% commission when a deal is made??? Is that too much or is that normal for agents working with wholesalers ? I was always told 3-6% is the norm but the agent said for all the offers she will put in plus sending me listings from the MLS is a LOT OF WORK ??? Also, when I told her I was going to be wholesaling her tone changed it seemed like she lost interest ? She said she would send me some listings but it has been 2 days and nothing ??? Was I wrong to mention to her that I am going to do wholesaling ? I have heard other wholesalers say don’t tell agents or sellers that you are a wholesaler but is that ethical ?
I am not going to comment on the request for a larger commission. Let’s look at the work.
You want her to send you leads and you will then instruct her to complete a lot of paperwork for each offer. The price will be low so rarely will the offer be accepted. The agent has to coordinate with the other agents to get the offers presented.
When you say you want to wholesale, who do you expect to be selling to? Are you expecting the agent to help with the sale or only with the offers to buy?
If you are not able to successfully wholesale the deal the agent is going to earn nothing as you will likely not complete the purchase.
In some ways were are you adding any value vs. the agent is doing all the work? What is in it for the agent? Why should they work with you vs someone else who is able to purchase the accepted offers?
The agent is thinking you will be a large waste of time as you do not have the ability to close a deal so no commission will be earned.
When you think about this from her point of view you can see why she is not all that interested and why she will want a good upside when a deal does close.
I am not expecting the agent to aid me in locating buyers I will do that… only to present my offers and although some offers may come from the MLS most will not as I want o bring to my buyers deals that are not on the MLS. As far as what I am adding well I am going to be the primary locater of the potential deals, I will speak with the sellers and my buyers, negotiation of deals etc… and just like the agent I also work on commission so if a deal does not go through I don’t get paid as well. Another thing if an agent views me and my wholesaling as a “large waste of time” and that I will be “unable to close a deal” I would not want to work with such a negative individual……