How to leverage a relationship with a realtor as a wholesaler

Question

I'm just getting started with wholesaling.. I'm reading and studying everything I can find.. one of the tips I saw said that most people fall short with wholesaling because they fail to formulate a cash buyers list.. so, I contacted a realtor.. I know this person from another business transaction that I'm involved in. i asked her if she could print out a list from MLS of all the people who purchased property in cash in my area.. she sent it to me.. in further conversation with her, she seemed receptive to working with me and even agreed to meet with me to discuss how we can work together to make some money through wholesaling..so, referencing my first question, I ask.. what strategies would you suggest I use with this real estate agent to succeed in wholesaling?

Jose Flores · Answer

Hey @Bionca Huntley It starts with creating value.  When talking with a local real estate agent, tell them what you do and explain to them what you can do for them. That’s the twist; not what they can do for you but what you can do for them. It might sound like this. Hello Mr. Agent my name is Jose Flores and I am a wholesaler in the area and I am looking for a new real estate agent to work with. I have sent out some marketing material this week and I am expecting to hear back from sellers in the near future. As you probably know I need to get properties under contract at deep discounted prices in order to sell them fast. Therefore, many of the sellers I work with do not meet my criteria. I would be willing to forward their property address and contact information to you. I don’t want any referral fee, but what I do need help with is getting comparable sales from the MLS.” Is that something you can help me with? The would give them my search criteria and have them email the comps the first few times. After I have sent them a few leads and would then ask for user name and password. Works like a charm, but it begins with you creating value for them. Good luck.

Brian Flack · Answer

@Bionca Huntley It is great to hear that you are getting started in real estate. Real estate agents/brokers are always a great resource. I recommend you contact many in your area. Most likely, you will be able to refer property sellers to them. Most sellers will want to sell with an agent, putting their properties up on the MLS for everyone to see. The sellers you may be targeting, may not want to list their property, for an number of reasons. Having a good agent you can refer sellers to can be a great asset. Referrals are a great way to provide value to agents/brokers. I agree with your idea of building relationships with agents. Dont just stop with agents... network with other investors, Contractors, Lenders. Tell your friends and family (strangers too) what you are doing.

You mentioned that many wholesalers fail due to an insufficient buyers list. In the current market, it seems like there are 10 buyers for every house. I find it is much more difficult to find a property at a discount than it is to find buyers. A few ideas to build a buyers list fast: use an online list source and search for recent cash buyers...Send me a message and I can help you figure this out...very simple. Also, if you get a property, post an ad on craigs list. Take a look now up on craigs list and chances are you will see other wholesalers with similar ads. "Cash Buyer" "Deep Discounted Property" "Handyman special" "fixer upper" All these keywords get attention from buyers. Look under houses for sale by owner on craigs list. I am curious how many buyers their are out there in your neck of the woods on the east coast.

I wish you the best of luck!

Teddy Smith · Answer

I've only worked with one wholesaler. I'm hesitant to work with them because 90% are "fly by nights" types and/or just sketchy.

Essentially, a realtor will exchange a buyers list with a wholesaler in exchange for a seller list of unworkable leads. A cash buyer is more valuable to a wholesaler and a seller lead is more valuable to a realtor.

Grigory Pekarsky · Answer

A realtor can be an amazing resource for a wholesaler. They are the experts in their field and know all of the tricks to find good deals. A solid relationship with your local realtor is crucial if you want to become successful as a wholesaler. In order to leverage a relationship with a realtor as a wholesaler you need to:

*    Develop a good rapport.

Rapport simply means the "relationship between persons". In a realtor's case, they have to deal with people from all walks of life, so being able to work well with others is key. It's important that you learn to establish this good rapport quickly as not everyone has the time or patience for those who are less than enthusiastic about building their business.

*    Be willing to repay your debts in a timely manner.

You would never take advantage of someone by doing something wrong and then refusing payment when it was due, right? Well the same goes for wholesaling properties. While you're waiting for your money to roll in, remember that if you don't pay up, you can ruin relationships and make an impression of insecure person.

*    Don't be a know-it-all.

There will always be people smarter and more experienced than you, so don't act as though you already have all the answers. This doesn't mean you should question everything or second guess every decision made by those higher up than you--just remember to stay humble and do as you're told.

*    Use your resources wisely.

Your broker is your go-to person for most decisions, but it's still important that you learn enough about real estate investing to make smart choices on your own from time to time. If you feel like a certain choice would work or if a strategy isn't working out or giving the results that were, check with someone first.

Mindy Jensen · Answer

@Bionca Huntley , I would caution you against asking for your agent's user name and password. My MLS will kick me off and blacklist me if I give this out. I think there are really big fines for doing this, too.

Bionca Huntley · Answer

Thank you all for responding to my post!

@joseflores what you said about trading sellers for comps makes perfect sense! I have to call her today to schedule our meeting and I think I'll use that strategy.. thank you :)

@teddysmith what made the wholesalers you have come in contact with seem sketchy? (I need to make sure that I'm NOT doing anything that their doing.. LOL)

@beverlypeffer just for clarification.. are you saying that in your opinion, any realtor that would prefer payment as opposed to a list would be a better person to partner with? If I'm understanding you correctly, why do you think that? (I'm always open to considering another opnion..)

@brianflack I will definitely be messaging you.. Im extremely interested in those list sources.. thank you in advance for your help with that! Also, I hear people say that REIA events are the best place to network.. have you found this to be the case? if not, where would you go?

@nickpatterson  I have thought about getting my broker's license.. just a quick question.. will a brokers license help me to become more proficient with the numbers aspect of the business? @teddysmith can you weigh in on this question also?

Nick Patterson · Answer

yes, you need to hang under a broker.  I'm sure there are companies out there that work with investors and not "Realtors" Take a look around, check out firms that offer 100% commission.

Its worth the price of admission...

@Shawn Crawley

Beverly Peffer · Answer

if a realtor wants 8 or 10 percent of transactions of a wholesaler and not a list. i think you will align yourself with good people.

How to leverage a relationship with a realtor as a wholesaler

Most Popular Reply