Wholesaler working with agents question

[Dave Slaughter]

In other podcasts and blogs it had been advised to network with agents to market for deals  by asking them if they have any sellers looking to move a property quickly. My question is what if they do? How would a wholesaler take down a property with an agent involved using the standard wholesale model of "flipping" the contract and not actually closing on the deal using their own funds? Can this transaction be done in a traditional wholesale sense.

[Karl Krentzel]

Originally posted by @Dave Slaughter:

In other podcasts and blogs it had been advised to network with agents to market for deals  by asking them if they have any sellers looking to move a property quickly. My question is what if they do? How would a wholesaler take down a property with an agent involved using the standard wholesale model of "flipping" the contract and not actually closing on the deal using their own funds? Can this transaction be done in a traditional wholesale sense.

Well, as a licensed Realtor®/Broker and Investor myself, I can assure you, nothing is further from the truth! You absolutely CAN wholesale a MLS Deal. Please allow me to answer your questions I see...

Question: "How would a wholesaler take down a property with an agent involved using the standard wholesale model of "flipping" the contract and not actually closing on the deal using their own funds?"

Answer:  The same way you would in any other transaction.  If assignments are allowed in your State (most of them allow it) then you may simply assign the property.  I write into my contract "Buyer reserves the right to lease, rent, repair, assign, or sell for profit."   

When written into your additional terms of the State Contract, any written words that are agreed to by the parties are legally binding, and supersede the boilerplate language of the contract. (Basic contract law) 

If your State doesn't allow assignments or makes them very difficult to do (Ohio) then you may still double close.  You may use transactional funding, or hard money if that is your choice.  

Many times a "wet" closing is required, (Meaning that you must bring your own money via transactional funding) and other times, you can do what is called a "Dry" closing.  Meaning that you have no money of your own in the deal and you use your End Use buyer's money to close.  

Question: "Can this transaction be done in a traditional wholesale sense."

Answer: Absolutely. In the case of flipping MLS Property; it is a question of the language that you use with the agent. In my Script book (Free) I have scripts available that you can use to deal with the agent..  

Trust me.  As an agent, I flip MLS property, and know PLENTY of other UNLICENSED who do too.  How?  Simple.

• Not all homeowners want the most. 
• The value is, what the value is.  The listing commissions are already figured into the deal.
• If you negotiate aggressively (you can do this!) then you can find motivated Sellers on the MLS who will then be great leads for you.

Here is a horrible video I did a number of years ago and put on YouTube about a Short sale that was on MLS that I flipped with no cash, and no credit.

It was listed for $225,000, I bought it for $115,000, and sold it for $125,000 a few days later.

You can't say that you can't flip MLS properties because "the agent will stand in the way".

They didn't stand in the way when I made my $110,000 offer on a $225,000 fourplex. 

In fact, they went in and got the deal done FOR me.  

It's all in the way you do it!

Have a powerful Sales Day!