Realtors don't like Wholesaler!!!!! (illegal)??

Question

Hello Everyone

I'm getting into wholesaling homes and Im targeted absentee owners. However , Im building my buyers list first. In making calls I come across some who are ok with what we do but with others (realtors) they HATE IT. They don't say it out loud but they feel what we are doing is illegal.

One guy asked me "Am i representing the sellers" I say NO............

So basically what should I say to these realtors who think what im doing is illegal???? :help:

J Scott · Answer

If a realtor has an issue, just mention that you are marketing for sale a property for which you hold equitable title. I can't imagine any knowledgeable real estate agent would consider that to be illegal (as it's not).

Don Konipol · Answer

Real estate brokers would like to have a monopoly on every transaction involving real property. In most states they heavily influence or control the state real estate agencies. With attorneys, researchers and lobbyists on their payroll, they are able to influence politicians on both sides of the political spectrum. What has held the Realtors in check over the last 30 years has been the general worldwide movement to deregulation and free market orientation. With this movement reversed in the last 3 years the Realtors are once again pushing the boundaries of their interests. Most successful wholesalers of residential property concentrate in the areas where the real estate brokers don't function well - "ugly" houses, those that need extensive renovation, low priced homes not worth the realtors time or energy, and those homes in certain "redlined" neighborhoods where the major real estate brokers choose not to operate. The truth is that owners of these homes would turn to realtors IF the realtors were interested and capable of selling those homes. Wholesalers provide a needed service to both the owners of properties neglected by the Realtor profession, and investors who do not have the time, talent or inclination to hunt down these opportunities.

Mitch Stephen · Answer

Deal with Realtors that understand investors. Don't try to reason with those who are stuck in the blind spot. I once got a call from the board of realtors in my town. They asked me if I was selling real estate without a license. I simply said, "Yes I'm practicing the hell out of it!" They eventually took me to the next level. When their attorney asked were I got the listings on the 50 houses I had for sale I told them that I went to my files and pulled out the deeds. He asked, "You own all of these houses?" I nodded yes. Case closed! Opposing plantiffs completely embarrassed. The attorney looked at them and had to laugh... "Are you people nuts?" he asked. Wouldn't do it that way again...but I was younger and full of fire. --Mitch Stephen--

Account Closed · Answer

Answer the question correctly. YOU ARE THE SELLER. YOU AREN'T THE OWNER. Just tell the realtor you are in the process of closing but haven't done so yet because your seller have given you some time to find an end buyer. I have access to myflorida regional (orlando mls) and do some business down there. Currently have a house on YORKSHIRE CLUB under contract that we will flip. If you are really having a hard time finding a realtor odds are I can fill the void. Though I'm by no means eager to drive there every other day

Sean D. · Answer

Simply put, your purchase contract with the owner of record gives you equitable interest in the property, which allows you to market the property as if you were the owner of record. This issue has been flown up the court ladders and they all agree that wholesaling property is not illegal. Alot of real estate agents just don't understand the wholesaling process...trust me, I used to be one.

Vanessa Brown · Answer

I agree with Robert. Realtors aren't hating you...they don't want to lose their license. There are companies where they know exactly what boundaries they can push and get away with it and others where the agents just flat out avoid anything that remotely seems like they can get in trouble for it. My dad always told me that the person with the most to lose should cover their own rear. If you step out on traffic as a pedestrian you have more to lose than the people in the cars; however illegal it may be to hit someone who is crossing the street. Same in real estate. If an agent is unsure they are going to avoid it. Investors will never lose a nonexistent license, you can flip till the cows come home. As an investor AND Realtor, I'm held to a different set of rules than other investors. I HAVE to be above board, I HAVE to only market after closing etc. In an instatnt when the call comes in they have to make a decision. They simply don't want to throw away their career and thousands of dollars in associated expenses on what they see as a possible fly by night scam. I work with a lot of wholesalers doing everything from acquisition offers to MLS listings, you just have to keep looking till you find a Realtor who is familiar with wholesaling. When you find that person in your area it will be an excellent resource for you.

Rob Gillespie · Answer

My simple answer. We only market and sell homes that we have an equitable interest in. We are the sellers of the property, we do not represent anyone. ( I get hammered a lot by agents) NEVER try to back door a Realtor, if a home is in contract, leave it be until it expires. It is one thing to have Realtors not like you, it is completely another to have their brokers put a target you back! I like to defuse the situation by getting an agent to show me some houses and write offers though them. All they want is a piece of the pie. They gotta eat too, LOL! :mrgreen:

Robert Littke · Answer

Every month I get a letter from the real estate commission that shows me the brokers who lost their license and are facing legal action for A) commitment mortgage fraud B) Not acting in their clients best interests. Last year of the nine lawyers in this state who lost their license last year, seven were to real estate fraud. I've never seen the name of a Flipper in that list, and you will never see my name on that list. Brokers don't "not like you" they don't care about you, they care about their licenses and what feeds their families and pay their bills.

Jimmy C. · Answer

Realtors may WISH that wholesaling is illegal. And if you debate one they will usually say something like "its illegal to market a property that you dont own". Which is easily countered already in this thread. When you have a contract to purchase you have an equitable interest. That is what keeps it legal when you are marketing the property for an end buyer. It gets worse in REO's. In some cases, the listing agents are actually having their reps scan for advertisements. then ask you to remove your marketing on that property until after you have closed. This has happened to me twice in the last 12 reo flips. Offline advertising sold one of them, and the other one we had to close nwith our cash (the horror!) but its got a deed restriction anyway. sorry for the rant. trying to help

Jonathan Tew · Answer

Whenever you wholesale a property all your doing is selling your interest to another buy/investor. If there a realtor I don't see the big deal because there still able to get a commission on the property.