All Forum Posts by: Jonathan Hasan

@Jonathan Hasan

If the property is listed on the MLS for the whole world to see and it hasn't sold, then how are you able to sell it? Unless you know a big cave man network of investors flush with cash I don't understand logically how you could move something that's not moving on the MLS. It's pretty tough to wholesale homes on the MLS.

Good luck.

@Jonathan Hasan

You are mixing up too many variables.  Sure, IF a seller wants to unload their property you might be able to find a deal.  But, most/many sellers aren’t desperate to just unload their property.  Or, they aren’t able to because they don’t have sufficient equity.

Honestly, you need to look at the “other side.”  Same as with any negotiation.  You need to understand the seller’s needs/requirements, and not just that “one” scenario where you can try to make money.  That’s pretty much where most of these post above are trying to show you.  Well, also the basic principle of honesty and transparency.

Two things

1. almost no seller agents will let you write an and or assigns clause nor allow little to no down payments.

2. You said you wanted to be “above board and ethical” and then you weren’t sure if you should tell the truth? Huh?

I think it’s next to impossible to wholesale a listed property.

@Jonathan Hasan

So, what’s your question?

Every offer needs E/M and most need Proof of Funds.  Also, NO assignment unless it's an entity controlled by the offeror.

@Jonathan R.

Amen! I am a Realtor/Investor so I got both sides of the brain... and there is DEFINITELY a huge space for Wholesalers. Just do it well.

When you suck you make the whole industry look bad.

Maybe some new, freshly-licensed agents won't know the term. Almost all agents would use industry standard contracts that very likely do not include the "or assigns" magic words that wholesalers need in the contract. 

Wholesalers market for off-market deals almost by definition, so if you chase on-market deals, you're a fish trying to swim in sand. 

You got a lot of good advice above as to why this is a waste of time for you, but a couple more thoughts: 

1. Agents are typically barred from paying unlicensed individuals any fees as part of procuring a buyer, and already signed a contract to pay the agents set amounts. Thus you can't get paid via that route. You could double-close if you can pull it off, but you'd basically have to deceive the seller and their agent about you being a legit buyer.. You are far more likely to be unable to find a buyer (since the deal is already on the MLS at a lower price) and thus your offers will fall through. You may be able to save your earnest money if you bail during contingency periods, but you will get figured out after it happens a couple times, and it will happen frequently. RE is a small world, reputations are a thing.

2. An assignable contract is just tying up the property while a wholesaler markets it for a buyer, and that is just dumb. Do you think you can out-market all the MLS data-fed websites, realtor.com, zillow, and the combined power of every single buyer's agent in your market?

3. Wholesalers are, to put it mildly, not considered the paragon of honesty and fair-dealing that they like to think themselves as being. They are usually operating illegally (brokering without licenses), marketing illegally (SMS and call spam, ringless voicemail, bandit signs, etc), their business model basically relies on taking advantage of desperate or naive sellers and taking a chunk of their equity without the seller knowing, which isn't very respectable, and frequently just being useless clueless middlemen using magic 8-balls for estimating rehab and ARV numbers.

4. Wholesalers need below-market prices on the contracts they flip, because that's what their contract buyers need. No realtor would advise their client to sell truly below market to an assignable contract. If they want to drop the price, they'd just drop the price on the MLS to get a legit, bona-fide buyer.

The only reason wholesalers are a "large business" is there is insane demand for deals right now, and the state regulatory agencies just can't keep up with the sheer number of new wholesalers being minted every day by these weekend seminars.   Nobody in the industry really likes them except other wholesalers, and investor buyers with money burning holes in their pockets.  Investor buyer agents will work with you on deals you bring to them, but they sure wouldn't advise a seller to sell under-market using an assignable contract.   

If you want to "wholesale" by buying a property yourself, and THEN immediately selling it, 100% go for it. Maybe it just needs a coat of paint or a tenant removed to make the deal work at a higher number..... But trying to work with MLS deals and an assignable contract will just be a huge waste of time for everyone.

Maybe some new, freshly-licensed agents won't know the term. Almost all agents would use industry standard contracts that very likely do not include the "or assigns" magic words that wholesalers need in the contract. 

Wholesalers market for off-market deals almost by definition, so if you chase on-market deals, you're a fish trying to swim in sand. 

You got a lot of good advice above as to why this is a waste of time for you, but a couple more thoughts: 

1. Agents are typically barred from paying unlicensed individuals any fees as part of procuring a buyer, and already signed a contract to pay the agents set amounts. Thus you can't get paid via that route. You could double-close if you can pull it off, but you'd basically have to deceive the seller and their agent about you being a legit buyer.. You are far more likely to be unable to find a buyer (since the deal is already on the MLS at a lower price) and thus your offers will fall through. You may be able to save your earnest money if you bail during contingency periods, but you will get figured out after it happens a couple times, and it will happen frequently. RE is a small world, reputations are a thing.

2. An assignable contract is just tying up the property while a wholesaler markets it for a buyer, and that is just dumb. Do you think you can out-market all the MLS data-fed websites, realtor.com, zillow, and the combined power of every single buyer's agent in your market?

3. Wholesalers are, to put it mildly, not considered the paragon of honesty and fair-dealing that they like to think themselves as being. They are usually operating illegally (brokering without licenses), marketing illegally (SMS and call spam, ringless voicemail, bandit signs, etc), their business model basically relies on taking advantage of desperate or naive sellers and taking a chunk of their equity without the seller knowing, which isn't very respectable, and frequently just being useless clueless middlemen using magic 8-balls for estimating rehab and ARV numbers.

4. Wholesalers need below-market prices on the contracts they flip, because that's what their contract buyers need. No realtor would advise their client to sell truly below market to an assignable contract. If they want to drop the price, they'd just drop the price on the MLS to get a legit, bona-fide buyer.

The only reason wholesalers are a "large business" is there is insane demand for deals right now, and the state regulatory agencies just can't keep up with the sheer number of new wholesalers being minted every day by these weekend seminars.   Nobody in the industry really likes them except other wholesalers, and investor buyers with money burning holes in their pockets.  Investor buyer agents will work with you on deals you bring to them, but they sure wouldn't advise a seller to sell under-market using an assignable contract.   

If you want to "wholesale" by buying a property yourself, and THEN immediately selling it, 100% go for it. Maybe it just needs a coat of paint or a tenant removed to make the deal work at a higher number..... But trying to work with MLS deals and an assignable contract will just be a huge waste of time for everyone.