Any agents in NJ working wholesale deals?

[Justin Pencook]

Hey guys,

I am working with a client who is interested in flipping a wholesale contract to a flipper. I have not worked a wholesale deal as a Realtor, but I am somewhat familiar with the process. The reason I want to help this couple is because they want to invest in rental properties in the future. Do any Realtors on here have experience with this business model? My understanding is that although I cannot collect a commission on a wholesale transaction, I can earn multiple commissions assuming I find the end buyer and they decide to hire me on the listing side post rehab.

They are sending me MLS listings and want me to send out multiple offers, some which are as low as .35 on the dollar. I have educated my client and made them aware of some of the drawbacks of coming in this low with essentially no basis. I am currently searching the MLS for properties that are good candidates to wholesale, but I am not 100% this is the best approach. I have a few questions that hopefully some fellow agents on here can answer.

1. Is it possible to find properties to wholesale on the MLS? If they are actively listed, would a listing agent be open to this sort of arrangement, and would it effect their commission at all?

2. What kind of properties are best to target for this? Should I be setting certain filters like: Notice of default, absentee owner purchase at least 10 years ago, etc. Anything specific that would make a prospective seller more receptive to our arrangement would be helpful.

3. Can you legally include "and/or assigns" in an offer to purchase in New Jersey? If not, what is the workaround to this?

4. My understanding is that off-market deals leave more room for profit and although more difficult to find, these would be the best approach to take. I know I would have to send out marketing pieces and start talking to sellers on behalf of my clients, all while not collecting a commission.  Is it worth it for me to do all this work for a modest marketing fee?

Any other tips on how I can best serve this client and build a strong relationship with them would be greatly appreciated!

If you are an agent in the South Jersey area who has experience working with investors, I would love to connect!

Thanks!

Justin