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Updated over 1 year ago on . Most recent reply
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Working with a Real estate agent's cash buyer
I am new to the wholesaling industry and was cold calling local real estate agents to see if they had any recommendations for cash buyers. One woman informed me that she had a cash buyer. She informed me that typically with wholesaling, I'd bring her a deal and she'd refer it to her cash buyer so we both got paid. I understand how the wholesaling process works when I have my own cash buyer but am confused to how this instance would work.
Would she represent me as the buyers agent?
How would I sell the contract to her cash buyer?
Should I expect a lower wholesale fee?
Any answers or insights would be greatly appreciated!
Most Popular Reply
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1) She will be representing her buyer, not you
2)If you offer a commission to the end buyer's agent, you can sign a commission agreement with her at the same time you sign the assignment agreement with the end buyer. Her commission will be deducted from your fee. You can instruct her to add her commission on top of your net asking price and offer the property at that price to her buyer. Alternatively, you can also ask her to include her commission on her buyer's side.
3) You sign an assignment agreement with the end buyer giving them the rights to purchase the property taking over your purchase agreement with the seller.
4) If you are paying the agent a commission you are going to get less of a fee unless you increase the price because you are offering to pay buyer's agent commissions.