Buyer's agent on double closing or wholesale deal

Buyer's agent on double closing or wholesale deal

Real Estate Agent · St Petersburg, FL · Member since 2014 · 116 posts · 38 votes

Hey all,

I've been working with a buyer's agent who is helping me in my deal search and has been very helpful with market research data and finding comps for MLS properties.

During my search I met another realtor who has presented a few off-market deals that he wants to sell with a double closing i.e. he would purchase the property from the seller and the same day turn around and sell it to me using my funds to pay the original seller. So far so good.

Even though these are off-market deals, I would like to work with my buyer's agent so he can help me with comps, writing up offers, etc for these off-market deals.

My questions are:

During a double closing or, similarly, a wholesale deal can I hire my buyer's agent even though this is not an MLS deal?

If so, how is my agent compensated? Can I pay my agent some kind of flat "realtor fee" or could it be a commission of the sale?

Thanks!

Happy investing.

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Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
5y

@Alexi Schreier You can pay him, his broker, any way/amount you guys agree on.  As a side note, very few title companies will allow the end buyer’s funds to be used for the initial transaction (a “dry” closing).

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  • Palm Bay, FL · Member since 2018 · 33 posts · 8 votes
    5y

    Interested in reading a response as this is an interesting scenario.  

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    5y

    @Alexi Schreier You can pay him, his broker, any way/amount you guys agree on.  As a side note, very few title companies will allow the end buyer’s funds to be used for the initial transaction (a “dry” closing).

  • Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    5y

    During a double closing or, similarly, a wholesale deal can I hire my buyer's agent even though this is not an MLS deal?

    Sure, it's a wholesale deal so the wild west.  However, someone needs to pay your guy's commission and if anyone I'd try to get the seller's agent to be somewhat charitable (otherwise you gotta bring in more cash).  

    Any idea on how big a slice the selling agent is making? (since it's a double escrow, he's probably hiding that).

  • Real Estate Agent · St Petersburg, FL · Member since 2014 · 116 posts · 38 votes
    5y

    @Steve Morris thanks for your reply! I don't know how much the selling agent is making on the spread but I get where you're going with that.

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