OfflineHi,
Thank you everyone for your help with this site. I am new and still studying. My question is this: if you want to be a middleman which is what i'm leaning on doing to get started, how does the role of a real-estate agent come into play? I think I understand the gist of finding a property way below market value, then assigning it to another buyer for a fee to make a profit. Where does a real estate agent come into this? I thought I read somewhere that they are great assets in your business, but i'm not seeing what the benefit of using a realtor would be in this situation. Thanks in advance for your help.
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Succeeding is the only option
The realtor basically represents you in the case of a wholesale. Besides a licensed contractor can only make the second party interested feel more comfortable. Don't feel like their cutting into your profit because their not. Why? Because you've already stated in contract what you wanted to walk away with. Put it like this the realtor saves you from doing a lot of paperwork, and you get to avoid the headache.
How does the realtor make a profit though? What percentage is given to him/her of the profit YOU make?
I always wanted to know that.
"Whenever you find yourself on the side of the majority it is time to pause and reflect."
-Mark Twain
My only concern would be when it comes time to present the offer....... Will the realtor discourage this kind of offer to the buyer , etc ?
You would think not , because everyone will get paid at closing as agreed.
If the realtor is on your "dream team" they should be working on your side. They should just take the offer to the seller of the home on your behalf. YOUR realtor knows that you deal in volume...so even if their profit is low on the current house...the overall profit they will make working with you will make it all worth while.
Now if you find out that your realtor starts whimping out on you...get rid of them. You need someone serious about the business and not afraid to go out there and place offers that are really low.
You would think not , because everyone will get paid at closing as agreed.
“There are no secrets to success. It is the result of preparation, hard work, and learning from failure.”
Colin L. Powell
where does the realtor make their money? If I re-sell the house to an investor with a higher amount, where does the realtor come in? Is the realtor suppose to help you find the house? I'm still having trouble understanding. sorry everyone if I can't seem to get this
Succeeding is the only option
So you (the wholesaler) do the work finding the house? Or does the realtor do that work? If the realtor does that work, does that mean he/she deals with you because you are finding the buyer? Sorry for the confusion
Succeeding is the only option
I think you are asking where does the realtor make their commission? The seller pays the realtors commission on any transaction. If the realtor has a listing on the MLS and you make an offer you are the buyer. If you are doing a deal back to back meaning you buy it and then re-sale it on the same day you would not need to pay the realtor out of the deal on the first half. If you use the realtor to find your end buyer then you need to pay the realtor for the second closing as you would be the seller in that closing. If you found your own buyer for the second closing then you would not have to pay the realtor. That is my understanding. I am new too. So someone can correct me if I am wrong.
Glad to share here and hope to learn by explaining it to others. I have noticed the best way to learn something is to teach it. So I am trying to learn too. Good Luck to you Buffs28.
You both look for deals. You go out and find FSBO's, preforeclosures etc...you can either contract it and handle it all yourself and not use your realtor or somehow bring your realtor in on the deal.
You can tell your realtor what to look for on the MLS for you. Like houses that have been on the market for more than 90 days, foreclosures, short sales, handynman specials,need to sell, discounted, just give your realtor a bunch of keywords like that...she can pull many that will fit that description and you can have her to place the offers for you.
She will make her profit from the seller of the house...you make your money from the end buyer that you find.
Some wholesalers even give the realtor a little extra incentive....maybe had them an extra $1000 or so on top of the commission they will make for being the realtor that handles the deal.
“There are no secrets to success. It is the result of preparation, hard work, and learning from failure.”
Colin L. Powell
thank you all this has been so helpful and is so helpful. what a blessing and a treat. I am blown away at all the help on this site.
Succeeding is the only option
Thank-you for the post. I was asking myself that same question.
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