Getting around a listing agent to another agent

[Lynne Garris]

How can I get around one agent that doesn't work with wholesalers to another that does? This house is a 40,000 profit and dont want to lose it. My other friend is a realetor he said he would work with me. Please help

[Charlie MacPherson]

@Lynne Garris  This doesn't seem right. There has to be more to this story. 

It seems highly unlikely that a property listed on MLS will leave that much profit sitting on the table. So the first thing to do is to double check and then triple check your numbers. Pay special attention to the rehab budget and ARV. Don't forget to look at outstanding liens, zoning violations, boundary disputes, wetland encroachments, etc.

If there really is that much profit in the rehab and resale, my bet is that rehabbers would snap that up with an all-cash purchase on the same day it hit MLS.

The next issue is the Realtor.  The listing agent will have a contract with the seller that gives him an exclusive right to sell.  No matter where a buyer comes from, the seller is obligated to pay the full commission.  There's no "going around" the listing agent until the listing has expired or has been canceled.

The reason the listing agent doesn't want to work with you is that:
a) It's not in the seller's best interest and don't forget, the listing agent is a fiduciary to the seller.  You'll want to tie up the property while you find an end buyer and have no intention of actually closing.  Further, as an investor, you have to buy at a steep discount, which means that the seller gets less than true market value.

b) Unlicensed wholesaling is illegal in most (and I believe almost all) states.  A licensed Realtor has to stay far away from illegal transactions or risk fines or license suspension.  Wholesaling almost invariably takes advantage of a seller who is distressed or uneducated.

In my opinion, the smart move is to invest in getting your real estate license.  Then you can operate above board.