All Forum Posts by: Ron Drake

 This is what Realtors do for a living. Why would they split their commission with you?

I know, it's because you found a house on the web and they don't have to do anything Lol.

I have pitched in when needed to help my buyers in the past when the Seller was unwilling to make a repair etc., but never agreed up front to split my commission. My time would be better spent showing other clients. Keep in mind, I have not shown houses for a very long time, but that is how it was.

@Jeremy Tillotson Good Story. Kind of fun to play with them, wasn't it?

@Crystal Smith Sounds like you have a handle on this. 

I too have been almost overwhelmed in the past with wholesale offerings. Unfortunately A LOT of the numbers being used in these reports and spreadsheets aren't even close to reality. From ARV to rehab costs. Way off. So somebody spent a lot of time and either did an incredibly bad job or trusted someone else with misinformation or skewed the numbers on purpose.

I am not always right when it comes to value but often am, but it is really annoying when deal after deal the rehab cost is "projected" to be $40k, when I know I can't even come close for $80,000. Doesn't matter if the house is 1200 sq ft or 2800 sq ft. $40k rehab. So if I were to bite on this offering, all the meat will be taken off the bone when rehab reality sets in.

Seems to be an ongoing challenge. Some contractors will start off great wanting to win your future business and then become less reliable as time goes on.

Try to get references from people you trust to give them.

Always have a scope of work and I like to agree on an hourly wage for "add on" items that I forgot to put down.

Always agree on a time frame for completion. At the very least if the contractor doesn't finish when he promised, you may be able to negotiate additional items thrown in for free. I try not to nitpick here, as a good working relationship with your contractors is imperative to success in this business.

Never, ever get ahead on your payments to them. Suddenly another job in their pipeline will become more important if you do. I always outline in the scope of work when payments will be made. Some contractors will take a small or no deposit and asked to be paid in full upon job completion. This is obviously preferrable but there are many outstanding trades that live paycheck to paycheck and will want/need to be paid at various stages of the project. Just do NOT get ahead on your payments to them no matter the sob story.

First of all, let me say I am not picking on, or pointing out anyone here, just pointing out some observations.

How can a wholesaler from Georgia (or wherever) who has never seen a house in TX or CA, or know those markets, possibly have a clue what the house is worth or how much it will cost to get it to some ARV?

Any wholesalers care to share?

If I was a Buyer I wouldn't give you cash upfront. I would compensate you if the deal closed at $xyz and I made a profit. 

@John Delia What kind of purchase price are we talking? Personally, if they cash flow, I wouldn't worry about it. They will still cash flow in 5 years even if house prices retract.

i never had a Buyer "run off" on me. Ever. And I never asked them to sign a Buyer Agency Agreement.

Maybe you are coming across a little too salesman and not enough trusted advisor?

@Bryan L.  Sorry that I didn't clarify. Marin county is near San Francisco.

@Bryan L. I always looked at those FSBOs as an opportunity, especially when other have the same mindset as you.

I recently sold a house in Marin County that I listed AND Sold with a flat fee MLS listing.

I also paid 3.5% commission on a $2,575,000 sale.

Would you not show it? I didn't think so.

Again minus 726 votes...