Does anyone work with real estate agents to find deals to wholesale? If so how has your experience been?
How does this process differ from buying a house with a FSBO? I know with agents you will need to be pre-qualified before making offers. This is something that concerns me.
I have recently contacted a real estate agent that is eager to work with me but asked if I would be buying cash or financing. I said all cash assuming I would find a buyer to assign the property to.
I am a little confused on the process. Any comments or suggestions are appreciated.
Many of them just don’t understand how they will be paid. Telling them you will assign the contract is a big no-no, don’t do that to agents. They will just write you off as seminar graduate.
Buying MLS properties is something I just don’t even bother doing. Too many agents swarming around with their buyers that will be competition for your wholesale properties.
Finding deals in the MLS is not something a beginning investor should do.
FSBO have less competition / you can negotiate flexible financing terms / don’t need to be pre-approved or any of that crap / don’t need to do all cash deals.
Here is where I am. I have an eletical co that wants to do flips.
They have a finance guy from bank of America,
Found an agent in the tageted area who has done several deals w/ contractors and one herself so she knows what’s up. She uses MLS (which I can latter use from my broker/friends office for future deals).
?
What should I ask the elecrical company for as a fee once I find property through the agent, and they decide to purchase. My time setting all this up.
Any way to avoid thr 6% agent commission. (sounds tuff)
Is 1% (point) of the sale price (after fix up-at the flip) at closing fair. Along w/ say a $500 finders fee at the closing table when they buy.
Would the rehaber (elecrical co) site that as an expence at the closing (when they buy)
I am a realtor and investor and about 70% of the homes that I buy are listed, so I wouldnt discount using the MLS for business. The seller pays the commissions if you are buying from the mls even if you assign the contract to someone else.
I have made my buyers $100,000+ doing wholesale deals and flips, heck the other week I sent one of my guys a home for 38k, I provided him with people to do repairs that were $3,000. then 2 weeks later brought him buyers that offered 69k for the home. thats around $25k in profit handed to him by me, on a platter.
I have to admit many agents are not so good, and are strictly money grubbers, but if you can find a good one who knows what they are doing than you are golden.
Another funny example of me doing work as an agent: I am about 1.4 Million in the hole right now so I have slowed down a bit buying, but the other week I came accross a 4 unit for 94,000, the cheapest anything had sold for in the area (all the 4 units are the same on the street) was $170,000. I spent the afternoon calling all of the buyers that I knew, none would buy because they were waiting for the market to straighten out. So I had to buy it and will wholesale the deal out for 140k. Hey, I tried to be nice, but once again my best buyer had to come through, and that best buyer is me.
Beginners should be looking on the MLS to start. It is one of the best ways to learn your market. Pro’s alike will constantly use realtors to purchase and sell wholesale deals and do assignments. Some realtors who do not think out side the box will try to discourage you from doing ANYTHING that wasn’t explained at realtor school. You may go through a hundred realtors before you find a handful that you can work with. Last three deals I had were all sold by realtors and one was brought to me by one.
There is going to be competition in any arena, How early do you want to get up and fast can you analyze a deal. How quick and inteligent are your team members ?That is how you deal with competition. There is enough for every one.
The MLS is only one source for leads. You newspaper adds will also bring in many. Using the MLS to wholesale deals is really fun…Under priced on the MLS and the phone rings like crazy.
Let the games begin ! Darin
I have read posts where wholesalers say they submitt 10-15 offers a month through agents. Is there a way around giving an earnest money check for every offer? Thanks
I typically don’t submit the earnest money until after the offer has been accepted. I also write in the contract that the earnest money is not due until after attorney approval. Sometimes it works and sometimes it does not.