What’s up everyone, we’re going to be talking about how to wholesale real estate with a realtor
Welcome back everyone. Today we’re going to be tackling a question that comes up often and that’s how do you wholesale a deal that’s currently listed with a realtor on the MLS. So this episode is loaded with good information. And what we’re going to do is break down and make it easy and practical for you as to apply this information. So you can go and wholesale a deal that’s currently marketed on the MLS right now, by the end of this video, we’re going to be going over the benefits and the challenges of wholesaling a deal that’s marketed on the MLS learn actionable steps to make this partnership work and see a live demonstration of me making an offer on the MLS to a real estate agent.
First things first, what are the key considerations when trying to find a deal that’s marketed on the MLS that you can wholesale? Well, you want to find a deal, that’s what you got to do, you gotta find something that you can assign to one of your buyers. If you see a house that’s listed on the market, and the ARV, or after repair value, what it’s worth, after it’s flipped is 300,000. And it’s listed 250, and you offer 250, there’s no margin, there’s no way that you can assign this or even flip it and make money.
So you have to find a distressed property, you have to find an opportunity. Before we go the next tip, if you’re serious about leveling up your game as a wholesaler and doing deals with real estate agents, subscribe to my channel because I got a bunch of content that I’m coming out with on how to do it. So now that you understand what you’re looking for, let’s talk about how to apply it. When you make an offer on the MLS that gets accepted and you’re looking to wholesale it, you’re going to put it under contract with that real estate agent. And what that means is you sign it, and then the seller signs and you both agree and usually the realtor should represent you. So they’re motivated to get the deal done. But they send you and the seller contract you sign then you do take your due diligence period, you should give yourself five 710 15 days as long as you can get.
And if you already have a buyer great. And if you don’t have a buyer, you can use this due diligence period to find one, that’s when you would go see the house you’d send your buyers through, and then you would assign it within that period to your buyer. Now there are some things you might run into the contract that you signed with the agent might not be assignable. So what you can do is you can say, hey, agent, I actually something else came up, I’m not gonna buy this, but I have a buyer that I’m working with, it’s a business partner that I’m actually just going to assign it to him shouldn’t be any problem we’re closing, like we said, it’s the same price
And the agents are like, that’s fine. If agents ever give you any problems, you can double close, you can use transactional funding and double close on the property and then sell it to that end buyer. Anyway, there are closing costs involved, and transactional funding costs. The process is pretty dang simple. But there are intricacies all you’re doing is you’re finding a deal finding a buyer assigning to them.
And then if there’s paperwork involved, you got to deal with that. But that’s how you deal with wholesaling a deal that’s on the market. But what I want to show you right now everybody is how to make an offer to an agent that you’re planning on wholesaling. I just call this agent, I recorded my conversation, and this is how I talked to him. I want you to see how I navigated the conversation. And I went through it. This agent actually is a flipper as well, I’m sure he wholesales and he knew what I was doing. And we were just talking openly and frankly, and I just said what are you gonna What do you want for the house? We just got straight to business. Check out the conversation. Tell me how you think he goes.
Hey, Joe, how you doing? This is Nathan Payne. I’m calling about the house on sly Avenue. Yes. Yeah. Do you have a couple of minutes to talk about it? Yes. Okay. So I’m actually not in the Tampa area. I’m an investor in Salt Lake, but I’m trying to kind of get out of there because the markets so slow here as a flipper, and I’m hearing that Tampa is still pretty hard. Is that? Is that true?
Yeah, absolutely. We’re flipping ourselves and have clients that are still flipping all the time in the area
So what’s what’s the situation with this one, because I have a software that brick gives me you know, distressed properties. So I call and see if I can make an offer. See if it makes sense. If you’re a flipper, what made you not want to take on this one is actually my friend’s flip.
who’s wanting to put on the market. And I told my broker, I’ll do it for him. And eventually, he doesn’t sell it. He’s just gonna flip it himself because he you know, he’s got a few of them. That makes sense to me to listen to this.
And I’m not interested in lowball offers from other you know, investors does there like a price he has in mind.
Okay, so yeah, and it looks like it just got listed. Is there a price where he’s you know, we don’t have to you know, Bs around is there a price for he’s like, dude, I’m looking for this and if I can get it done good. And I’m not interested in lowball offers from other you know, investors does there like a price he has in mind.
Yeah, I mean, basically what I listed that is pretty much what he’s looking to get. He will entertain a strong offer. But he’s not gonna entertain like a super lowball.
So like if I came in at like, 250 you know, or would that be like punched in the gut like too low or what do you think?
Yeah, against the low low. I think I’m seeing maybe like, high 360s major.
What What’s the situation with accepting an offer like, you know, if I make an offer, let’s just say two to 16. I can close in like seven days. Is he looking to like accept When that quick or is he just gonna wait and see what comes in?
Quickly? I mean, if you can close fast and definitely it makes your offer more enticing, it might take a little off the price if you can close very fast and it’s more concrete. Yeah, kind
of tell me what you’re thinking because I’m an investor. So it’s just really like there’s the downpayment, or sorry, the earnest money, the close date, obviously, I’d want to probably have one of my guys at this local go look at it in person, but you know, so probably like one do due diligence day. I don’t want to like lock them up for a stupid amount of time. But what do you think would get the deal done? If we’re like, hey, yeah, let’s let’s do it. Because I’m looking at the ARV. And looks like it’s like 450 in this area, probably like 500.
And that’s what we have the RV about as close to 500. Right. Yeah.
So kind of tell me what do you think would get it done that you could present it? Because I mean, I’m, I’m looking for a project like now, because I
get the offer? That essentially would be the price that have to be just not super lowball fairly close with a fast closing would be preferred. And, yeah, I think short inspection period, like a day or two would also be enticing. I think those those are the good POF or something to show that you have the songs or the ability to get close, would make the offer enticing, obviously not assignable as well,
of course, yeah, of course, this is what I’d like to do, you know, obviously, 250 be great. But if we could do 260, I would say I can I think I can close in seven days. But you know, if you gave me like 10 business days, that would even be better, just in case and just two days of due diligence, and I can put like 5k down. Do you think that would? You could write that up for me? Because I’m not I don’t have any agents that represent me. So hopefully, you could do it for me.
Yeah, that’s the other thing essentially not represented. Obviously, he doesn’t have to pay that commission. So then hopefully offer a little bit as well.
Yeah, yeah. So do you think you could write that up and give that to him today? And if he’s, if he likes it, we could just, you know, go under contract today, hopefully, and just get it get started ASAP?
Yes. So you said you want to do 260? Yeah, close.
10 days. 10 business days, if we could do that. That’s
for like, two weeks, but he’s still interested.
If two weeks is not enough, I would just say give me until like next next Wednesday. I don’t know if that’s just because, you know, if I don’t make it this Friday, I’d still you know, I wouldn’t want to lose the out on the deal. Are my earnest money, you know?
Yeah. Last thing is the title as these come in. That’s it. So yeah, exactly. I mean, I could put it for next Friday or the Monday after
that’s two weeks. That’s just due next Friday, that should be enough time. So
I’ll do that. You said how much money you want to put on the escrow. I
usually do five, when it’s a cash purchase.
That works. Monday, the 11 to 60 inspection period.
Yeah, just give me two days. So you just give me two days. So if you give me till Wednesday, that’d be fine, then you know, because if we go under contract today, I can send some people maybe later today or tomorrow or Wednesday.
I’m obviously pretty tight with him. So I can just propose those terms to him. See if he wants to counter back or if he wants to accept that. And then whatever you’ve come to an agreement with, I could write it up and execute
it. As far as seeing it. I see. There’s a lockbox would it just be like, you know, once we’re under contract, you just gotta give me the code and I send my my people through. Yeah, exactly. Okay. Yeah, and please keep me in mind. Like if this one doesn’t work, like I said, just I’m kind of bouncing from the Utah market to this one. So if you have any ones that are any opportunities like this, you know, I’d love to look at everything you got.
Absolutely man that’s mostly on the broker, this monster brokerage does is for essentially just working with investment properties, whether it’s commercial or residential listings, or buyers are pretty much doing mostly our own campaigns for property finding distressed residential properties, commercial as well. So yeah, we pretty much are all only working on investors, and we’re getting we’re getting different deals all the time.
I totally get it. You know, it’s kind of a scary time right now. And you know, that’s why I’m kind of, I’d rather go to where the price points are a little lower still kind of high in Utah, like, you know, to get an investment property. You’re, you’re still in the half a million mark, just to find some that’s like crappy but you know, it’s not too expensive. Yeah, I’ve heard a few different
things about Salt Lake looks like a beautiful area. But I’m sure you’re out west with more fences. Yeah, actually, another investor in Salt Lake who basically told all their stuff in Salt Lake and they use that satisfy a VA essentially, like whatever they asked for one property in Salt Lake, they’re buying for like two or three Bantha basically,
who do you know, I might know? It’s actually
who do you know, I might know? It’s actually
an older lady. Her name is Melanie. Her last name was like much Rica.
I’m sure we’re friends on Facebook or something. But anyway, yeah, man. I appreciate it. And, you know, what do you think I can expect to hear back from you Joe?
Actually just shot him a message. I’ll probably give him a call after this and I’ll probably be able to get back to you at least I thought Cool,
cool. All right, man. Appreciate it. If you have any other questions for me, nothing
else for you if you just want to text me over just like name, contact info, any kind of background and other help as well.
100% All right, I’ll send that all over. So if you liked that video and you want to learn more about how to work with real estate agents, follow me hit the like button and subscribe. See on the next video