I want to put a house under contract using my agent and subsequently wholesale. How does this work when you are using an agent? How do they get paid and will they want to continue to work with you if you wholesale the deals? Any advice would be greatly appreciated!
Thanks in advance.
the end buyer has to pay the agent fee. you can set up like that.
keep in mind in wholesale, the way you get paid is somewhat simular to the agents----You are looking for a good deal with good financing, and most of the time that means way below FMV. It’s pretty difficult to find a deal like that, if it’s listed.
Before technically answering your question, I would like to point out that you really shouldn’t be using an agent when you’re trying to wholesale a deal. In my experience, realtors mean well, but just don’t quite grasp the concept of wholesaling and can get in the way. Plus, when you have another hand in the cookie jar, that means less of a profit for you.
There are some exceptions to this and perhaps your deal is one of them. For instance, if there’s a beat up house that’s been on the market for a while – perhpas someone died there, or it’s in really bad shape, etc – and it’s listed with another realtor, then it might make sense for you to have your agent make your offer. If it gets accepted, then the seller would be paying your realtor’s commission (typically buyer’s agents get paid by the seller). But, when I’ve faced this type of property, I usually approach the seller’s agent and tell them, “look, this property has been sitting here for a while… would you be willing to cut your commission in half so I can come in with a lower offer and your client (the seller) would still net the same amount if I had an agent?” Most agents are open to this if it truly is a “dead listing.” It’s no harm to the realtor because they’ll get the same commission they were probably anticipating anyway and the seller would still get the net they were hoping for. You’re happy because you get a better price. Did that make sense?
HOw are whoelsale deals found, if your not looking on the MLS
Assuming you can find a realtor that will not purchase a property themselves if there is that much money in it, you need to be upfront about the situation. They will get paid from the proceeds of the sale so they may like to have you working for them.
Geoff
You are working with an agent so he will get paid from the deal. I like all my team members to get paid sooooo they keep bring the deals. I interviewed a new agent last week, gave him my criterea,he called this week with a no brainer,I tied it up w/and/or assigns. called another agent on my team,he sold the contract the next morning to one of his investors…both realtors and myself getting paid out of escrow next week,20k for me and the realtors get their requested fee’s. They can’t wait to find me another deal.
Realtors should NOT be your only source of leads or you will starve. You need as many people as possible finding homes for you.
One of my Realtors maintains a list of buyers and we constantly look for properties to fill their wish lists. I spend a lot of time snowboarding/cycle riding. I have blue tooth phones in all my helmets and Some of my Realtors have power of Attorney to sign for me, I gladly pay my top Realtors their fee’s + extra to run the business from afar. They can be your best assets.
There are enough deals out there for every one and "your " Realtor can’t buy all of them.
When I find a deal to whole sale I immediately contact my potential buyers and Call and email my 5 best realtors as they have buyers lists also.If it has a thin margin I broadcast mail to the other couple hundred Realtors.
I find that wholesale deals are rarely found on the MLS. If they are there they last a day,hour,minute or are listed as pending just for comp reasons.
I may end up with a little less per deal becouse of the Realtor but usually I got the deal bought or sold because of the Realtor ,but then I get more deals than average joe, no offense Joe.
Pigs get fat, Hogs get slaughtered ! Darin
Deleted
I would suggest looking into marketing subsections of forums, as well as courses and books.
You can find more deals by a factor of ten or more when using marketing rather than the MLS.
HOw are whoelsale deals found, if your not looking on the MLS
Good morning advertize a day at a time,
Read the real estate marketing forum. You should be advertising in your local papers to have people call you with deals, put up signs. Get to it!. Don’t try to reinvent the wheel. All the stuff you read about marketing works, just do it. Add your own idea’s too. But start Monday AM. Your phone will be ringing by the week end. People bringing you deals. The MLS is usually the worst place, but not always.
Wouldn’t you enjoy to have your phone ringing w/deals. Report in next Monday with results. Thank you, Darin
Darin,
Good Idea. I will start next Wednesday actually. I have been looking at the Marketing forum and I see so many ways to start. Id like to know what is the bread and butter way to start. Id like to start with the newspaper advertisment , but IM a little uncertain if that is the best way to go. I know that it largely depends on the message and the area, but are there any suggestions about which forum of advertisment is the bets to start with?
Thanks
Aarron
Hello Aaron,
Stop procrastinating my friend. Start Monday so your adds come out by the weekend. Look up your local newspapers on line and see what the investors adds are. If one guy is offering 500 bucks for people to find homes for , run same add and offer 1500 bucks. Now they are calling you.
YOU FIND HOMES
I BUY THEM
YOU GET PAID $2000.
541 408 2345 ,<<<<<<<_--------------
cashdeposit@msn.com Here is a sample add
Darin
If your agent is helping you buy, then you pay whatever the buyer agent fee is. If they’re helping you assign (i.e., they bring the buyer), just add their pay (whatever it is) on top. If I’m helping find an assignee, my investor and I just discuss how much we want to make. If he finds the buyer, he doesn’t pay me. If I find the buyer, we both get paid. All deals have to be good enough to leave room for the buyer to make money too. If it’s really skinny, we pass or the investor works on his own.