Wholesaling with a real estate agent

Wholesaling with a real estate agent

Member since 2024 · 2 posts · 1 vote

So I'm coming up with ideas of how I can make money wholesaling and I have some questions to see if these ideas could work.

If i were to go under contract with a FSBO, for a set price on a property with an assignable contract. Could I have a real estate agent find a buyer for this contract/property and offer the agent a percentage of the assignment fee?

Market Value of the property: 

For example, I convinced a FSBO to sell his property for $300,000 with the contract being assignable and I go under contract

Then, I find a real estate agent, tell them that I have a deal and I'm offering 33% of my assignment fee which is 30k so the agent would be getting $10,000. Should I consult with a real estate attorney when drafting up a contract? Would this idea for wholesaling work????

1Reply
27 views

Most Popular Reply

Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes
2y

Hey Jerrell, 

The answer is yes, we have done it several times with our off-market leads. I offer them 2% of the final purchase price to the realtor if they bring a buyer. You would just sign a commission agreement with them and they get paid at closing. 

Reach out if you have any questions! 

See this reply in the discussion

6 Replies

Jump to latestLatest
  • Wholesaler · Member since 2024 · 99 posts · 39 votes
    2y
    Quote from @Jerrell Sweeting:

    So I'm coming up with ideas of how I can make money wholesaling and I have some questions to see if these ideas could work.

    If i were to go under contract with a FSBO, for a set price on a property with an assignable contract. Could I have a real estate agent find a buyer for this contract/property and offer the agent a percentage of the assignment fee?

    Market Value of the property: 

    For example, I convinced a FSBO to sell his property for $300,000 with the contract being assignable and I go under contract

    Then, I find a real estate agent, tell them that I have a deal and I'm offering 33% of my assignment fee which is 30k so the agent would be getting $10,000. Should I consult with a real estate attorney when drafting up a contract? Would this idea for wholesaling work????


     I tried this strategy with an agent before. It can work, but the agent has to be in the know. Their broker also has to give the freedom to do some unconventional things. The agent has to be savy. The broker has to be savy. Grabbing an agent who only works with retail buyers is a recipe for disaster. 

  • Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes
    2y

    Hey Jerrell, 

    The answer is yes, we have done it several times with our off-market leads. I offer them 2% of the final purchase price to the realtor if they bring a buyer. You would just sign a commission agreement with them and they get paid at closing. 

    Reach out if you have any questions! 

  • Investor · Louisville, KY · Member since 2024 · 6 posts · 0 votes
    2y
    Quote from @David Ramirez:

    Hey Jerrell, 

    The answer is yes, we have done it several times with our off-market leads. I offer them 2% of the final purchase price to the realtor if they bring a buyer. You would just sign a commission agreement with them and they get paid at closing. 

    Reach out if you have any questions! 

    Good afternoon! Just sent you a message Mr.Ramirez
  • Flipper/Rehabber · Houston, TX · Member since 2012 · 176 posts · 75 votes
    2y

    That's a great question. First, you need to find an agent who is knowledgeable and has great relationships with other investors.

    But why do you want to give part of your commission when you can do this on your own?

    I have been doing this for 12 years; I have never shared a wholesale commission with an agent. 

    Reach out if you have any questions!

  • Real Estate Consultant · Miami · Member since 2024 · 53 posts · 18 votes
    2y
    Quote from @David Ramirez:

    Hey Jerrell, 

    The answer is yes, we have done it several times with our off-market leads. I offer them 2% of the final purchase price to the realtor if they bring a buyer. You would just sign a commission agreement with them and they get paid at closing. 

    Reach out if you have any questions! 


     Yes it's like Jerrell says, you just offer them a 2% commission. You will have to let them know that their buyer will have to sign an assignment because they will send you a Florida Farbar which won't make sense for you.

    So you have to make sure you communicate with the agent that it will be an assignment of contract. Many agents don't know what that is and sometimes they freak out because they think it's a scam.

    But in terms of the structure it's a simple and often used strategy. 

  • Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes
    2y
    Quote from @Livia Adams:
    Quote from @David Ramirez:

    Hey Jerrell, 

    The answer is yes, we have done it several times with our off-market leads. I offer them 2% of the final purchase price to the realtor if they bring a buyer. You would just sign a commission agreement with them and they get paid at closing. 

    Reach out if you have any questions! 


     Yes it's like Jerrell says, you just offer them a 2% commission. You will have to let them know that their buyer will have to sign an assignment because they will send you a Florida Farbar which won't make sense for you.

    So you have to make sure you communicate with the agent that it will be an assignment of contract. Many agents don't know what that is and sometimes they freak out because they think it's a scam.

    But in terms of the structure it's a simple and often used strategy. 


     Correct! 

    It would be best if you had that conversation when sending or offering your off-market deal to a buyer's agent. 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.