Do real estate agents know what wholesaling is?

Asked by Tbodley, Bessemer, AL Fri Jan 20, 2012

Most investors I know say this is supposed to be some big kept secret from real estate agents who only deal with retail clients. For those of you who do not know what wholesaling is, you can Google something like wholesale real estate investing, or how to wholesale real estate. I felt like I had to keep this a secret from real estate agents for a long while now, but after hearing what other agents have said about the business of wholesaling makes me not so worried because I am interested in wholesale investing too. What I was always afraid to tell agents whenever they ask why I need comparable sales information and how I plan to buy the properties was that I plan to buy with other buyers money. In my opinion agents should not care what I do as long as I get a deal closed no matter where the money comes from even if it is other investors money.

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5
John Walin, Agent, Libertyville, IL
Sat Jan 21, 2012
So this isnt a question, just a way to promote yourself. What exactly is the value add for the consumer? Why not buy a place and cut you out? Thumbs up to you Phil
2 votes
Phil Rotondo, Agent, Melbourne, FL
Sat Jan 21, 2012
Nice speech.
We're all going to be in big trouble if you ever find out about the bilateral 6A5 agreement.
Web Reference:  http://www.321property.com
2 votes
Annette Law…, Agent, Palm Harbor, FL
Sat Jan 21, 2012
Of course we know about wholesaling.
It is not a secret by a long shot. For many real estate agents it does not fit their business model.
Most wholesalers embrace the idea agents want to work for FREE. That of course is good for some, but not others.

To think agents are unaware of OPM, self-directed IRA, note financing, options, hard money, cross collateralizing and other readily available financing options would also be shortsighted.

The question should be rephrased, "What are the professional standards that make such transactions/arrangements less desirable or forbidden for real estate professionals or those who are realTors?"
Web Reference:  http://www.MyDunedin.com
2 votes
Alan Engman, , Saint Petersburg, FL
Sat Jan 21, 2012
Speaking from the perspective of being a broker and a well seasoned investor ,My experience with wholesalers has been negative overall. They mean well,at least that is what they believe, but in reality ,they tend to cause more harm than good.

As an investor...they tend to get in my way of purchasing a property by tying up the property with Assignment Of Contracts and other ,one sided,legally binding paperwork, paperwork that forces me to pay them to get out of the way so I can purchase the property. I do not do business with them.

As a broker...They tend to have a shotgun approach to investing ,in that they tend to flood the market with low-ball offers, figuring that if one or two of their offers are accepted they will gained control of the property and will have the opportunity to resell it at a profit. I protect my clients from people such as them.

In conclusion, I believe wholesalers are as the name implies, wholesalers, not investors, and therefore are only looking out for THEIR best interest ,rather than THEIR CLIENTS best interest. Unlike a wholesaler, I as an investor or broker, am always looking out for what's best for a person.
0 votes
Lyle Wolf, Agent, Morristown, NJ
Sat Jan 21, 2012
Some do and some don't. Some will and some won't.
0 votes
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