All Forum Posts by: Mina Summers

 Thanks for chiming in, John. Sounds like this may not be the case in TX (per Carlos' answer above).  Looks like I may need to fork out the 3% myself as the buyer, which can end up being a lot depending on the size of the apartment complex purchased unfortunately. (Ex: $30,000 payment to a buyer agent from me if i buy a $1M property) Sure wish all sellers here would pay for the buyer's agent on these apt deals.... I'm trying to decide if paying the 3% as a buyer is worth it or if it's better to just buy my first apt without an agent. 

 Thanks for the great info, Carlos. Are most of the buyers you know in TX choosing to buy apartments unrepresented in that case? 

For those of you who have purchased apartment complexes before .... Would you recommend buying with a buyer broker/agent representing you or buying unrepresented?

(Have you ever lost deals due to the seller / seller's listing broker choosing another offer that doesn't involve having to split the commission? Or been stuck paying the buyer's agent fee yourself as the buyer due to the seller's agent being unwilling to pay?)

Trying to decide whether or not to pursue multifamily deals with or without buyer representation....advice would be appreciated! 

Hi Everyone - OP here.  Thanks to everyone who has posted thus far.  I thought I'd add a few details that may or may not have an impact on the discussion:

It's not that I don't want my realtor to get paid... I actually would love for her to get paid!  The problem is that most wholesalers I've met thus far are not willing to pay a commission to my agent...... and the numbers don't really work out for me to buy if I have to come up with her commission out of pocket.    

I've been working with her for 8 months, and I have bought one property from her (6 months ago)... however, there has been *nothing* on MLS with a good enough return worth buying since (and I crunch numbers daily on everything that comes out). I started exploring wholesalers recently out of desperation to get any sort of decent return. While in theory, I'd love for her to get paid again, I'm frustrated at the lack of decent returns on MLS properties (not really her fault) yet seem to be unable (?) to work with wholesalers due to the exclusivity agreement she had me sign when I made an offer on a property last month (deal fell through due to huge structural issues with the property where the numbers no longer made sense..... she wouldn't submit the offer until I signed, so I felt I had no choice at the time).....and this exclusivity contract lasts for another 11 entire months. 

It looks like my options are thus:

1) Buy something that only breaks even or is cash flow negative from MLS with my agent (doesn't seem smart to me)

2) Pay my agent commission out of my own pocket for any wholesale properties I buy through wholesalers I find (the numbers don't work out in my favor here, leaving little margin for profit....)

3) Don't buy anything at all until the exclusivity agreement ends ... in another 11 months (this does not seem viable to me either, since that would set me back enormously in my investing goals which include acquiring $X in passive annual cash flow this year)

4) Find a friendly wholesaler who is willing to pay my agent some commission without padding the price 

5) Buy from a wholesaler and legally don't involve my agent. (Is this legal if the wholesaler is a "seller" or "seller's agent" and not a buyer? Would my agent find out?)

6) Buy from a private seller off of Craigslist if there are good deals to be had there (is this case similar to the wholesaler case? would my agent be entitled to a commission if I buy privately off of Craigslist)

--

It sounds like #4 would be the best "win win" for everyone, but I have never heard of a wholesaler willing to pay an agent (without building in the cost ie: charging me a lot more).... have any of you?

#5 would also be good, as long as I'm not running into any legal problems here.

It seems I am stuck between a rock and a hard place due to the lack of deals on MLS that make financial sense and being locked into this agreement until 11 months from now. :( I'm just trying to get in on something - anything - where the numbers make financial sense but that's not happening unless I buy from a wholesaler or off market without my agent, it seems.

Thoughts / advice?

I've recently started looking into buying properties wholesale, since the numbers don't make sense for most of the MLS properties in my area. However, the realtor I've been working with had me sign a "Residential Buyer Representation Agreement" when I made an offer last time, and I'm locked into this contract where my agent has the "exclusive right to represent buyer" in the market areas I'm looking to buy in.

Questions:

1. Can I still buy from wholesalers (either with or without the realtor's involvement)   if I'm locked into this contract with my realtor?

2.  If so, would my agent be entitled to commission from the wholesaler, or would the transaction be able to legally occur without the agent's involvement / the agent getting a cut?