First off, I LOVE Realtors!!!
They’re a key component to success as a real estate wholesaler.
In this post I will cover two important aspects:
1. How real estate wholesalers work with Realtor’s.
2. How a Realtor can succeed as a real estate wholesaler.
So why would wholesalers benefit from working with Realtors in the first place?
Well, Realtors understand real estate, they get the paperwork AND they cultivate buyers. (huge)
Think about it, if you have 50 buyers on your email list that means you have exposure to 50 people right?
Correct…(unless they share your stuff which most don’t)
Now, what if you have 50 good real estate agents on your list and each agent has 5 buyers they work with, what’s your reach?
Correct again, 250!
You 5Xed your reach with the same amount of people, PLUS Realtors know how to sell your property to their buyers, get the contract signed and earnest money deposit and also get the paperwork to the title company to open escrow.
They’re like a partner, it’s awesome!!!
Now you’re asking yourself, How do they get paid? (I’m psychic, lol)
They will add their fee onto your wholesale price. For example, let’s say you have a property you’re selling for a wholesale price of $100,000. The real estate agent can add $3,000 [3%] (or more) to the price of the property.
So the contract would be written for $103,000 and the agent would submit commission instructions along with the contract which would instruct the title company to cut a check to the Realtors broker for $3,000. (the broker would cut the check to the agent subtracting their fee) just an fyi
It’s a win-win-win situation, you get the property sold and get paid, the agent get’s a commission and the buyer gets an off-market property which makes the agent look like a rock star…
…killer, I know!!
So the takeaway is this:
1. Don’t be afraid of Relators.
2. Build a massive email list of Realtors. Network with them, get their cards and put them on your email list to send your properties to.
Pretty cool huh?
Alright, now let’s say YOU are a Realtor and YOU want to wholesale houses, what do you do?
Well, a lot depends on your Broker. You have to talk to your broker and let them know that you want to flip houses. Some brokers will not let you, and other brokers will let you as long as you disclose that you’re a Realtor.
The bottom line is that you must communicate with your broker FIRST.
Now if your broker says “NO WAY!” you have a decision to make. Do you say and continue as a Realtor and ONLY be a Realtor, or do you find a reasonable broker to hang your license with.
If you do have a reasonable broker then you can be a Realtor and an investor as well.
Here’s how you have to think about it. As a Realtor, you represent either a buyer or a seller in a transaction. When representing someone, there comes a lot of responsibility and that is why you’re licensed and there is a Board of Realtors to make sure you’re doing the right things.
As an investor, you don’t represent anyone but yourself. You’re “acting on your own behalf” You flipping the property for a profit that you’ll get paid, not a commission earned.
That’s the difference.
As a Realtor you representing, and as an investor, you’re acting on your own behalf.
That’s a huge difference, would you say?
Now, because you’re a real estate agent, you will most likely have to disclose in writing on the contract that you are a real estate agent. You might also have to put that on your marketing as well, but that will be up to your broker.
Being a real estate agent is a good thing if you have a broker that is reasonable. But you have to be aware that because you are a Realtor you must disclose that to the sellers and possibly in your marketing.
Definitely not a show stopper. 😉
So if you’re a Realtor or want to build an email list of Realtors to sell your properties to, please check out this webinar. If will show you how to get started flipping houses.
God bless, and have an awesome day!!
Want a 30 day risk-free trial of Flip2Freedom Academy?