What problems will I have using buyers agents.......?

Question

What problem if any will have when I want to wholesale a deal and use a buyers agent at the same time?  Most  investors I know wholesale deals all the time without getting an agent involved in their business, especially when they are assigning properties for a fee. If the buyers agent is getting paid commission from the seller, would me flipping properties over to other buyers for an assignment fee be a problem to the buyers agent? and would I still have to pay higher earnest money deposits to the seller even if the agent works for me and is getting paid commission by the seller? I only need an agent to  determine accurate market values on homes I want to put under contract.

Antonio Bodley · Answer

Finding a good agent I can depend on is tough for me. I did have an agent that was suppose to be bird dogging for me, but this agent totally forgot about me.

Dion DePaoli · Answer

Find an agent to act like a bird dog for you.  Give them the criteria you want on your properties and have them go hunt them down.  Be upfront about talking about what happens where there is no fee for them to earn from a seller.  Make them an ally, respect that fact that they need to make money and mutually figure out how a good relationship will work.

The agent should be investor friendly and have experience with the same.  They may even be able to help you procure counter parties for properties too.

They are in the business of real estate just like you.  Good agents are worth the time and effort to hunt down and create relationships with but sometimes you may have to talk to several before one shines over the rest.

Antonio Bodley · Answer

Let me see. What kind of deal could I possibly strike up with an agent to get value feedback?

Dion DePaoli · Answer

A "true" buyer's agent is supposed to protect your interests or negotiate in your best interests as a buyer.  If the property you get involved with has a listing agent then the buyer's agent will be able to collect the agent commission offered.  If there is not a listing agent then you will have to negotiate with the agent you are using.

Assigning a contract means you are a principal in the chain of the contracts.  At a point in the chain you are recognized as a buyer.

Agents only recommend EMD to sellers.  A seller has a right to ask for any EMD they desire, usually this is by the recommendation of their listing agent.  In a contract a buyer and a seller are the principal parties, the agents are 3rd parties to the contract not principals, they represent the interest of the party they are loyal to.

A buyer's agent, who has loyalties to you as the buyer should not be negotiating against you by offering higher EMD or any other term not in your best interest.

It is all workable and boils down to preference and hassle.

If you just need value feedback, perhaps strike a deal with an agent or an appraiser.  Nobody likes to work for free and nobody likes to do a lot of work for peanuts.