How do realtor commissions work when wholesaling with a realtor?

[Mahmoud Y. Elhalawany]

Hey there everyone! My partner and I have just closed on our first deal!! We have learned a lot but are forever in need of more guidance. Recently we have begun to add a lot of realtors/brokers to our cash buyers list. My question is this: When we shoot out properties and a realtor ends up bringing a cash buyer how does the commission get paid out? does it come out of the purchase price/assignment? or is it tacked on-top of the contract? We will almost always have the end buyer pay closing costs (There are rare instances where we will agree to split closing costs as part of a negotiation). The way we do our disposition is through a highest and best auction/bidding war on the contract, so assuming the realtor brings the cash buyer should we factor their commission into our calculations? will their commission affect our bottom line and or what the seller is getting is what i am asking. I keep getting different answers and it is really really confusing me.   

Thanks so much for reading everyone! 

[Russell Brazil]

Originally posted by @Joe Splitrock:

@Mahmoud Y. Elhalawany when you are wholesaling in this manner, you are assigning the contract. These are buyer to seller deals that generally do not involve a realtor commission. If the buyer wants the realtor to get paid, it will be handled outside closing between the buyer and the realtor. 

@Russell Brazil thoughts?

In my market, the big dog wholesalers are offering a commission to agents to bring a buyer.  Thats probably why they are the big dogs since they know how to create the largest pool of buyers as opposed to looking to make the most money on each deal.