- Ways of earning from finding deals

[Margarita Reyes]

My husband is a realtor and has been finding deals in ct for multi family rental properties that do not need rehab and are already occupied with tenants, cash flowing. He also has a knack for negotiating.

We are saving our current available capital for a brrrr property, thus we do not want to be the ones to purchase these deals he is finding.

We have access to some colleagues who are interested in investing in real estate but passively. Apart from realtor fees upon closing and property management fees, how else can my husband benefit from finding deals like this?

It sounds to me like wholesaling from what I’ve read, but It’s a whole other thing to learn. Is wholesaling done legally in CT?

[Zach Westerfield]

@Margarita 

@Margarita Reyes i dont know the legality of wholesaling in CT, but if its legal that is an option. In some more restrictive states, he could also double close, which is a form of wholesaling. Basically yall buy the property and immediately sell to the investor. This typically has higher fees but avoids assigning the contract. 

Another simpler option is your husband could charge a "bird dog" fee. this is simply a fee for finding a deal. Many investors offer these to friends and family, such as $500 if you bring me a deal I close. This would work well if yall already know the investors. 

One last note for wholesaling - IF its legal in CT, the actual process is relatively simple. The thing that makes it a "whole other thing to learn" is the marketing piece of it. Successful wholesalers need a steady source of deals, which almost always involves setting up and running marketing companies to produce leads. Since your husband is already an agent producing leads, the hard part is over. However, if he works for another broker he will need to check with them to see if they are okay with wholesaling on the side. Most brokers want their part of the commissions for any transactions they agents complete.