Is there course to teach Real Estate Agents how to work with investors?

Question

Or a good online article?

Yesterday I was in the office of a broker with over 20 years as an agent.  She said she had never heard of 'wholesaling' properties.  I explained how we as investors work directly with sellers/owners, get the property under contract for a price, then market to our investors/buyers for a higher price, then make the assignment fee.  She was clueless; said she never heard of assigning a contract and how could I market a house I had not bought?  I explained I had it under contract which gave me an equitable interest, then the end buyer is buying my place in the transaction for a fee.  Again, she was just bewildered.  I've come across this over and again so does anyone know of a good article or course to send agents to that will help them understand this process and learn that it's not illegal?

Joel Owens · Answer

There are brokers and agents who play in the regular homebuyer and seller space and then ones that are investors themselves.

Those you typically find at the local real estate investor meetings. If the brokers you are talking too are making great money on regular sales they do not want to hear about your creative techniques.

I have had many title companies and attorneys say they do not want that liability or kind of business nor do they need it. I wouldn't force strategies on people who do not want to do them or are interested in them. I would find others who are in that segment who want to take on that type of thing or be involved with transactions that have it.

Bill Gulley · Answer

Looks like this is going through the wash again, let's use a different cycle and see if it comes out better.

This sin't the first question or concern posted about Realtors not understanding or knowing something.

I "wholesaled"properties for years, pumped properties to landlords and rehabbers for years and never heard of wholesaling before I got to BP!  This is totally a guru thing, a pretty easy marketing approach that has been used way before anyone here was ever born,yet it's now treated as a speciality by those flipping contracts, another very old transaction, known as a straw man deal before I was born.

The problem between Realtors and investors is a two way street, they should not be viewed as having to conform to your strategy just because you can't buy under thiers.

You can't speak to a frenchman unless he speaks english (or your language) and if he doesn't, yelling slowly at him in your language won't make the subject any clearer.

So, if they don't speak your language, and you want to communicate with them, why not learn thiers?

Do you have any idea what I'm asking if I were to tell you "I want to have usufruct of this property without any fudiciary responsibily or title interest for three years" ?  Well, it's your problem that you don't know that I asked for a land use lease.

Terms used between "investors" is almost like slang to attorneys, Realtors, closing agents, title companies, contractors and the general public, I just can't see the problem of communicating investor terminology with these professionals in the industry as being thier problem.

It might be easier saying that you sell the contracts to purchase properties, not the properties. You might say you advertise the contract to purchase, not the property. You might say since I have the right to purchase a property I have, by law, the right to assign my contract for value. Since it might be a new concept to some, you might add that when I obtain a contract I disclose to the property owner that I may assign my contract to a buyer I know or another party I work with to get the property sold as agreed.  ;)

Karen Margrave · Answer

In reality "wholesaling" has been going on since the beginning of the markets, but was never tagged with a specific name. Agents have written contracts forever with a persons name "or assignee", it's nothing new. Agents forever have participated in buyers doing "double escrows", this isn't rocket science!

EVERYONE that is buying real estate is an "investor", not just wholesalers. Most people that purchase a home to live in are thinking about the value the home will have one day in the future should they decide to sell.

Other people buy properties, fix them up and resell, they too are "investors". For some reason, "wholesalers" think they have the niche in the market and are doing some new type of business, when in fact, it's nothing new at all.

Find an agent that knows your local market, explain what you're doing, and go from there.  Good luck

Mark Updegraff · Answer

I agree with the above advice.  You should not be training your team.  Find professionals that already know how to do what you need done and get them on board!

Happy investing,
Mark

Belinda Lopez · Answer

Not sure what state you are in but in Texas, you have to be sponsored by a Brokerage to even get your license.  There are a few investor-friendly brokers I've met through my local REIA who work with investors and sponsor them as agents.  The Brokerage still gets a percentage on your deals until you become a broker yourself, and you can only become a broker after so many years of being an agent.

I've gone back and forth over getting my license too as MLS access would be a great help.  I've offered to pay for a relative to become an agent and work with me so I may go that route.

Good luck!

Belinda D. · Answer

Wayne Brooks, thanks for helping me to see from the perspective of the agent. My wholesale business will be one of transparency for the seller and all involved.

Wayne Brooks · Answer

Belinda Duhaney  My response was to simply let you know why real estate agents, who understand wholesaling, aren't excited by dealing with wholesalers.
This is why most wholesalers concentrate on off market deals, with less competition, desperate and/or uninformed sellers who probably don't understand exactly what the wholesaler is trying to accomplish.  Some wholesalers disclose exactly what they are trying to do with the seller, but I'm betting most don't.

Karen Margrave · Answer

Belinda Duhaney I have to agree, when you're living in another country, it's very difficult for those of us in the U.S. to give you advice. Even in adjoining states we have varying real estate laws. I had an agent the other day tell me that a seller wouldn't even allow me to look at their property because we were builders and they wanted to control who moved into the neighborhood! It's ILLEGAL to do such a thing, yet the agent had no clue.

Belinda D. · Answer

Wayne Brooks, I really appreciate your "gentle" response! I am all for constructive criticism and the odd kick in the pants, because I know they are done to make me better. However, as a newbie student, if I perceive someone to be jumping down my throat, I will be hesitant to post a question or participate on the forum.

Going forward, besides possibly getting my license, I am considering getting a private lender, so that I can close on the wholesale deals.

Wayne Brooks · Answer

Belinda Duhaney The reason most agents don't want to work with "wholesalers" is simple.  We know that the wholesaler, 95 times out of 100:
1) Doesn't have the money to buy the property themself
2) The sale will occur only if the wholesaler can flip the property for a higher price to someone else.  This means our seller has to sell below current value (and why should they) or the wholeaslaer has to find someone to pay above market value.  By being listed we've probably exposed the property to 90% of potential buyers.
3) From prior experience, we know wholesalers rarely ever complete the transaction, and we've taken the property off the market and it's not available to real buyers while under contract to the wholesaler.
Having said that, I occasionally will "wholesale", but I actually buy the property and then resell, without it being dependant on having a simultaneous end buyer.
Also, we don't generally consider wholesalers to be "investors" since most don't actually buy anything.

Is there course to teach Real Estate Agents how to work with investors?

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