He says: "I'm a Wholesaler; I've got a Buyer for your listing".

By
Real Estate Agent with Century 21, The Real Estate Centre, 410-665-0200 Office 634480

He says: "I'm a Wholesaler; I've got a Buyer for your listing".

 

If he had said: "I'm a Real Estate Agent; I've got a buyer for your listing", then I would have said good, send me an offer.

 

If he had said: "I'm a buyer; I'm interested in buying your listing", then  I would have asked if he had a real estate agent, or if he would like to see the property, or something along those lines.

 

But, he said that he was a wholesaler to which I thought why do I need to know that, unless you want something out of the deal.

 

For instance, if the property is priced at $50,000, would he purchase it for $50,000 and then resell it for $60,000, or more likely would he put it under contract for $50,000 and then assign the contract to the actual Buyer for a price of $60,000, or perhaps he would do one of these things while negotiating for a lower price.

 

If he actually has a buyer, then why doesn't he just send her my way?

 

Maybe he does not have a buyer, but just wants to put the property under contract, with no intention of buying it, but rather with the intention of finding a buyer to whom he can assign the contract.  Of course, the contract would have numerous ways for him to get out of the contract with no liability incurred by him.

 

In any of these options, even though, he calls himself a wholesaler and does not call himself a real estate agent, in actuality he would be acting as a real estate agent, something for which he presumably does not have a license.

 

I wonder if he would be willing to include a kick out clause in the contract such that I could continue to market the property and such that if I found a buyer, then I could "kick him out" if he did not produce a real buyer.

 

Well, as it turns out, I will not find out, because, fortunately for me and unfortunately for him, I have received a real contract from an actual licensed real estate agent with a qualified buyer.

 

 

 

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Maryland Baltimore County Nottingham Perry Hall
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wholesaler

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Rainer
394,621
Kathryn Sparks
Zenith Realty - Baltimore, MD

Ron,

It is amazing how their 2 page contract can contain so many ways to get out of a contract.

Dec 18, 2018 10:37 AM #1
Rainer
375,901
Karen Krzniak
Zenith Realty - Towson, MD

Ron,

When a wholesaler goes directly to the seller, they usually are missing all required disclosures in their contract.

Dec 18, 2018 10:43 AM #2
Rainmaker
3,978,839
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I was seeing red flags all over this.  Good you got a real contract

Dec 18, 2018 08:13 PM #3
Rainmaker
3,541,820
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Ron. I agree with you that this is bizarre. Glad you have a real offer.

Dec 19, 2018 09:11 AM #4
Rainmaker
3,778,129
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good evening Ron Trzcinski, 410-935-5844 ,

I'm thrilled a "real" agent showed up with a contract for their buyer. A "wholesaler" ....interesting concept and one with so many negative connotations for your seller.

Dec 21, 2018 04:05 PM #5
Ambassador
892,315
Lynn B. Friedman
Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ... - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Ron Trzcinski, 410-935-5844 
Headed to your MILLION points.
Congratulations ----

As for your encounter with the "wholesaler", they claim to be the "representative" of the Buyer. They often admit that they are not a real estate agent - saying that they are only "representing" the Buyer to get a better deal. So what about that is different than a person acting as an unlicensed real estate agent???? All the best - Lynn

Dec 21, 2018 04:19 PM #6
Rainmaker
480,597
Bruce Kunz
C21 Solid Gold Realty, Brick, NJ, 732-920-2100 - Howell, NJ
REALTOR®, Brick & Howell NJ Homes for Sale

Wow Ron Trzcinski, 410-935-5844 I've not experienced this call yet, but certainly lots of questions & 'red  flags' = lots of likely problems coming.

So glad you've got a 'real contract'! Best wishes for a fast & smooth closing.
Bruce.

Dec 21, 2018 04:51 PM #7
Ambassador
1,629,773
Alan May
Coldwell Banker Residential - Evanston, IL
Helping you find your way home.

If you're listed for $50,000... and he buys if for $50,000... what do you care what he does with it afterward.  I don't care if he re-sells it for $100,000, as long as my seller gets what they want.

Dec 21, 2018 06:02 PM #8
Rainer
491,733
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Ron,

Inventory from bandit signs & letters must be getting mighty thin, if they are going on the MLS, where buyers can go as well. With the age of the internet, there are very few stupid buyers around any longer. They never call me.

Dec 21, 2018 09:42 PM #9
Rainmaker
1,172,992
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Ron Trzcinski, 410-935-5844 - Not something I have ever encountered here in Arizona. 

Dec 22, 2018 04:04 AM #10
Rainmaker
2,957,668
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

I have to say this happens here in NH too. There are those who get these ideas from the web or the newest get rich real estate calls down at the Holiday Inn. Like you, i am happy there is always a better offer for the seller to go with

Dec 22, 2018 05:45 AM #11
Rainmaker
665,131
Laura Filip
Laura Filip Broker , Opening doors for All Seasons of Life - Whitesboro, TX
What can we do for you today?

Thank you for sharing this with us. There are all kinds of items that seem to appear these days and way back when as well. Glad to hear you received a contract , hope it closes and funds and needed. 

Dec 22, 2018 09:41 AM #12
Rainmaker
1,292,134
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

If someone had called me saying "I am a wholesaler and I've got a buyer" I would have heard: "I am a wholesaler and I want to screw your seller".

Dec 22, 2018 09:45 AM #13
Rainmaker
36,962
Evan Roberts
Dependable Homebuyers - Baltimore, MD
We Buy Houses

Ron Trzcinski, 410-935-5844 you were smart to be sketptical. As a real estate agent in Maryland it is critical that you protect yourself and your sellers with a MAR contract. This is the only contract that provides the verbage that lays out your role in the transaction.

If he actually had a buyer for the property you could push for him to purchase the home himself (with a large deposit) and "wholetail" the property to his potential buyer after he has closed. It would require him to come up with the cash, but if he's a legitimate wholesaler then a hard money lender would put up the funds no problem.

Dec 22, 2018 05:24 PM #14
Rainmaker
728,655
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

Unusual tactic by a "wholesaler".

Dec 23, 2018 03:07 AM #15
Rainer
118,367
Anthony Kirlew
Keller Williams Legacy One Realty - Gilbert, AZ
Helping You Make Fiscally Sound Choices

At least they were up front with you so you would know what you were up against. It's also important that agents understand how real estate investors operate so they can protect their sellers. For example, if they were a wholesaler with no way to close on their own and could not find an end buyer, you could lose valuable market time if you did not include the kick out clause you mentioned. 

Dec 24, 2018 12:30 AM #17
Ambassador
934,879
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Glad you got a valid contract before you had to experience this wholesaler first hand.

Dec 25, 2018 02:26 PM #18
Rainmaker
802,036
Chris Griffith
Downing-Frye Realty, Bonita Springs, FL - Bonita Springs, FL
Bonita Springs Listing Agent

There is always someone out there looking for an angle or a sneaky way to scrape off the top instead of just doing business.

Dec 26, 2018 09:13 AM #19
Anonymous
agent helper

This is why most real estate agents are broke. Listen up, you have a fiduciary responsibility to your client. This means that you need to get your dam feelings out of it and do the very very best job for your client that hired you. Your job is to get the highest and best offer for your client given their particular situation. Stop complaining about what investors are going. Its irrelevant and imaterial. if you are worth your commission, you can write a iron clag contractor without the houdini clause. There is no escape. Either he settle on the deal or loose his deposit. Your greed and envy will keep you broke. If the property is worth $60,000 why the hell are you selling it for $50,000. You should be ashame of yourself. You adviced your client on the best price. Stick to the plan. Don't be greedy. If you are certain that the property is worth $50,000 then sell it for $50,000. if the property is worth more, then don't under price your clients property then complain about investors trying to steal it. Here is what you do; Remove all assignment of contract clause, set a firm settlement date, add an extention clause where if closing does not happen on the specified date then $X is required to extend the contract. make the deposit none refundable. My this non-contingent, meaning there are no contingencies. if there is even one contingency then add a kickout clause, meaning you have the right to accept a better offer if one turns up, this will give you the opportunity to keep the listing active while disclosing to new buyers that you have a contingent contract in hand. Remember, if there is full and total disclosure to all party you can write anything thats legal in the contract. Hope this help, but it seem you are in your own way.

Dec 27, 2018 01:41 PM #20
Rainmaker
520,205
Wendy Rulnick
Rulnick Realty, Inc. - Destin, FL
"It's Wendy... It's Sold!"

Ron, I had something similar happen with a commercial property I had listed. Apparently, these people also scan local ads, craigslist, etc. and bring them to the attention of end-buyers who may not be institutional buyers (I doubt they are). In my scenario, the deal did not happen, but the "real" buyer found out that he was not given all the info from the wholesaler, so paid himto say "good-bye" and fired him, then "hired" me and bought something directly. Caution is wise!

Dec 27, 2018 03:55 PM #21
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