Need Advice From Experienced Wholesalers

[Felecia Sewell]

Family I need some advice! I have a cash buyer that has given me a list of vacant multi family properties he is interested in. Im in the process of researching to find out who owns the property. Once I get this information, I will send them a yellow letter. My dilemma is how do I negotiate any potential deal. I feel like I'm working as a agent for the cash buyer which is illegal in Florida. How do I fit my assignment fee into the deal? The cash buyer wants to buy multiple properties. 

Any advice is appreciated.

[Kirk Gore]

The line between realtor and wholesaler is a little blurry and that's something that I've been trying very hard to define more clearly as I learn more and more about wholesaling. 

Technically to wholesale this deal, you'd have to get the property you're interested in under contract to "buy" it and then assign it to your cash buyer for the contracted price plus your wholesale fee. The most likely way you can achieve this is by marketing to the all of the properties and then hoping that for at least one of the properties:

A) the owners of the property are motivated to sell, 

B) the owners of the property have substantial equity in the property allowing for them to "sell" it to you for a deep discount, 

C) you can negotiate a price both low enough for you and your buyer to get a good deal while being high enough for your seller to feel comfortable selling,

AND

D) you can get all of this under contract.

In order for you to get paid for simply connecting your cash buyer to the owners of the properties you would need a real estate license.

To my understanding the main difference between wholesaling a property and representing a client as a licensee is that in the wholesale transaction you enter into a contract with the seller to "buy" the property (which really means to assign to another buyer) and in a licensee transaction you enter into a contract to either "represent" a seller, buyer, or both in the selling of a property. Even though as a wholesaler you still technically represent the seller and buyer, the contract assignment loophole seems to exempt you from the necessity of the license.

I'm still learning myself but I hope this helps!