Flipping, wholesaling, and RE Agent all at once?

Flipping, wholesaling, and RE Agent all at once?

Wadsworth, OH · Member since 2021 · 110 posts · 91 votes

I am assuming some of you wholesalers/flippers out there are also real estate agents, or at least have an agent on your team… so this question is directed to you. 

When you are marketing (be it direct mail, cold calling, online advertisements, etc.) do you offer both your services as a cash buyer, and a realtor? I understand this can get a little bit messy, but I also feel like a large part of the audience my marketing reaches may not be interested in selling off market, but would possibly be interested in listing their house on the MLS. Part of me feels like ending the relationship because they aren't interested in an off market offer as a wholesaler/flipper is leaving money on the table.

If you don’t do this, why not?


And if you do, how do you do it? Do you advertise yourself as both a cash buyer, and a realtor? Or do you just wait for them to tell you they aren’t interested in your cash offer, and then tell them you would be happy to list it for them if they would like?

Thanks BP!


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Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
4y

Absolutely, I think we should all be doing this. Why arent we? 

We have so much power as RE professionals. If we are trying to live off of 3% for every transaction we will be working forever 

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  • Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    4y

    Absolutely, I think we should all be doing this. Why arent we? 

    We have so much power as RE professionals. If we are trying to live off of 3% for every transaction we will be working forever 

  • Investor · Boulder, CO · Member since 2017 · 304 posts · 347 votes
    4y

    @Ezra Henderson excellent question. As an investor who is licensed, when I farm to off market properties I say something like "No commissions. I am licensed. And I want to add to my personal portfolio. I'm a cash buyer." You must disclose your license but that isn't a bad thing. Your license gives you MLS access and if you're doing it right a vast network of buyers, sellers and re pros. Plus YOU are a pro! I remember a seller who questioned me verifying his loan information and my response was "You're glad I did this because I am a professional."

  • Wadsworth, OH · Member since 2021 · 110 posts · 91 votes
    4y

    Thank you guys! @Shiela R. do you ever offer to sell their property on market if they aren’t interested in your personal offer?

  • Investor · Boulder, CO · Member since 2017 · 304 posts · 347 votes
    4y
    Quote from @Ezra Henderson:

    Thank you guys! @Shiela R. do you ever offer to sell their property on market if they aren’t interested in your personal offer?


    So, it depends but usually if they aren't into my offer, I let them go bc how are they going to afford a commission if they or the property is distressed?

  • Involved In Real Estate · Langhorne, PA · Member since 2013 · 38 posts · 20 votes
    4y

    This is a good question.  I do not list properties that come through my off-market marketing funnel.  I have a conflict of interest though (partners).  I also don't really enjoy being an agent (for clients) and mostly only have my license to save money listing my own rehabs when they are finished.  In your case though, I would say if the deal is dead due to the fact that your offer price is too low and you think the price they need is possible with a retail buyer you should definitely segue into your listing agent pitch.   Why not?

  • Wadsworth, OH · Member since 2021 · 110 posts · 91 votes
    4y

    Gotcha. Thanks, that is helpful. 

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