agent and wholesaler

[Account Closed]

Does a wholesaler have to pay an agent to get them leads? Like how does the agent and the wholesaler work together and make money???

[Dev Horn]

I'm not licensed (yet), but I don't think an agent can broker a property to you and receive a commission on the side, outside of their relationship with their broker. And I believe to collect a commission on the HUD (the seller side commission), the broker and agent must enter into an agreement (listing/brokerage) with the seller. Also, I don't believe a licensed agent can pay a referral fee to a non-licensed individual.

I have 3 agents I work with, 1 who is my main go-to agent. She finds me deals on the MLS generally and I make offers on listed props thru her. She also runs comps and helps me value off-market properties. And I have referred multiple listing opportunities to her where I did not receive anything from her in return because she helps me in so many ways. It's really a very complimentary relationship if you can find the right agents. We've found people with Keller Williams to be the most "investor-friendly".

But I will admit, after handing over quite a few listing opps to my agent friends, I really have questioned why I don't just get my license and capture that part of my business.  So, soon I'm going for the license (by early next year).  It just makes sense because you can list more of your leads than you can buy (for cash at a steep discount)...