realtor doesn't know wholesaling

[Shequann Burrwell]

is it a good idea to work with a realtor that doesnt know what wholesaleing is and is it worth it to teach them how it all goes?

[Gary Hurst]

I would never work with anyone that has not accomplished what I am trying to accomplish. Because that means they do not know how to get there. Good luck

[Darren Sager]

@Shequann Burrwell You're much better off finding a realtor who understands how to work with all types of investors. Both you and your clients will be better served. PM me if you need one.

[Wayne Brooks]

You might be better off with an agent who doesn't know what wholesaling is. I know what wholesaling is , and how to do it, and I wouldn't waste my time with the vast majority of "wholesalers" I've run across. If you're trying to low ball MLS properties hoping to get 1 out of 100, and then hope to resell it within 2 weeks......not interested. If you're working with off market properties, which is what you should be doing, you're not bringing any work for me anyway, unless you're referring me clients for listings, where you can't buy their properties for the price you need to buy it for. I know who really performs, the rest are pretenders.

[Justin Williams]

I suppose it depends on your intentions. I don't think any of the realtors I work with on a normal basis really knew much about wholesaling before we started working together so I don't really see why that would be a problem.

Is your concern that you are having them tie up properties and then assigning them to someone else?

I think if you have a good agent who can get deals under contract it would be worth explaining to them what it is.

[Shequann Burrwell]

well yes im looking for them to find properties for me to wholesale as well as rehab. some know what that is and some just have no idea what im talking about partly i believe its because they are new to the business but that is somethig i cant tell buy just talking to them and they dont relay that to me in talks, you can tell by just how they talk to you.

[John Rooster]

Originally posted by Shequann Burrwell:

well yes im looking for them to find properties for me to wholesale

If you are expecting a Realtor to find you properties to wholesale, then you are the one that does not know what wholesaling is.

[Wayne Brooks]

This one of the misconceptions some wholesalers have, usually the new ones....that you can take a property that has been exposed on MLS to the market, and go find a buyer off CL, bandit signs, whatever...that will buy it for a price that none of the buyers who saw it through MLS/agents/trulia/Zillow,etc. will pay for it.

[Account Closed]

Shequann,

How much are you paying the realtor to find properties for you to wholesale?

Joe Gore

[Shequann Burrwell]

@John Rooster you missed the point. i said wholesale and rehab. i never mentioned how they would find them. i know what mls is and how its used. my main use for a realtor is to run comps, help find investors to purchase my properties, and handle closings if its necessary in that state. @Account Closed im offering half my assignment fee to find a buyer. i talk to realtors out of my area mostly so they usually have more of a heads up on whats going on in there markets then say i would.

[Ryan Shuchman]

MLS = Retail

You need to find them at auction or off market.

[Mike Lowery]

@Ryan Shuchman would FSBO be considered retail as well?

[Ryan Shuchman]

An accepted, investor priced offer (~70% of market price ARV), on a FSBO or MLS property is wholesale in my mind. FSBO probably has better ratio of offers to accepted.

[Dev Horn]

The probably of wholesale opportunities on the MLS is almost ZERO. Don't waste your time OR an agent's time.

The rough formula for the offer is:

((ARV x 70%) - Repairs) = Offer (for rehab)

If there are no repairs, NO ONE is going to sell you a perfectly good house at 70% of it's actual, current value.

The formula for a WHOLESALER needs to be:

(((ARV x 70%) - Repairs) x 90%) = Wholesale Offer

In other words, you need to get an EVEN BETTER DEAL than a rehabber if you hope to get paid for finding the deal without ruining the deal for the rehabber.

[Jesus Villarreal]

just curious what the x 90% is?

[Account Closed]

Shequann,

That might be a good deal if the realtors fee equal 6% because that is what they charge to bring a buyer.

Joe Gore

[Andrew S.]

Originally posted by Jesus Villarreal:

just curious what the x 90% is?

@Jesus Villarreal - that represents the (ca 10%) wholesaleing cut you want to build into the deal, so that the numbers still work for a rehabber AND there is meat on the bone for the wholeseller.

[Nick Luongo]

Originally posted by Joe Gore:

Shequann,

That might be a good deal if the realtors fee equal 6% because that is what they charge to bring a buyer.

Joe Gore

But the listing agent will only make 3%, buyer's agent will make the other half. Also my area 4 or 5% is the standard total listing percentage so the 2 sides would split that

[Erik Hitzelberger]

I'll be the voice of dissent here. Depending on your market, you can certainly use a real estate agent to help you. Whether he/she already knows about wholesaling or you want to do the training is up to you.

I have a client who likes to wholesale properties. We have a good relationship and have completed 6-7 deals off of the MLS this year. Yes... it is possible. In fact we just put one under contract tonight.

That being said, it has to be a mutually beneficial relationship. I understand her goals and know how to add value to her business. She adds value to mine, by being a repeat client, minimizing the time I spend on each offer, etc.

[Shequann Burrwell]

i agree @Erik Hitzelberger it would depend on the market and how much room there is in the deal. but either way i never had a issue offering up half of what i would make on the deal for any number of deals.