Agents Don't Love Wholesalers? They should!

By
Home Builder with Kind House Buyers
https://activerain.com/droplet/5pJM

Hey everyone! I thought for my first on ActiveRain I would speak from the perspective of most agents' pesky lil friend - the real estate wholesaler.

 

 

If and aren't familiar with real estate wholesaling, it's when a seller and a "buyer" agree on a price, sign a contract (below market value), and then the "buyer" assigns his rights and obligations of that contract to another buyer for a hefty fee (often times 10% or more of the sales price). 

 

What?! Why would a seller actually do that? An agent could list on the MLS and the seller's proceeds would be way more! I'm sure that's what most agents reading this are thinking. The bottom line is, the traditional route of listing a home doesn't meet every seller's needs.  If it did, real estate wholesalers wouldn't exist. These sellers typically need to sell a house fast for cash. But, that's a discussion for a different post.

 

I want to talk about the opportunity agents have to work with and co-exist with wholesalers (the ethical ones anyway.)

 

For a wholesaler to get a deal from a seller so good that they can lock up a contract and then assign the contract for a fee, how many sellers do you think a wholesaler needs to talk to?

 

Well, it depends on the market and the marketing channel but the answer is, A LOT!  They typically have to talk to around 20 people who WANT TO SELL THEIR HOME before they get that one seller who is in the position to accept a cash offer at a discount. 

 

What do you think most wholesalers do with those 19 other sellers who want to sell, but for fair market value? Most of them do nothing! I mean it. They just throw those leads away. Sad right?

 

You may not agree with the concept of wholesaling. But, as an agent, can you agree that there is a lot of incentive to befriend and network with wholesalers and other cash home buyers? They could be passing you those leads daily! And for all the properties they do buy to flip, someone is going to list the house. Why not you?

 

If anyone wants to learn how to build relationships with wholesalers and investors let me know. I'd be happy to answer any questions and it might just be the topic of my next post. 

 

 

Keith Sant

Kind House Buyers

 

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Re-Blogged 4 times:

Re-Blogged By Re-Blogged At
  1. Debe Maxwell, CRS 11/29/2020 09:22 AM
  2. Laura Cerrano 11/30/2020 08:34 AM
  3. Joe Jackson 12/10/2020 05:51 AM
  4. Kris Collis, Associate Broker 02/24/2021 09:56 PM
Topic:
Real Estate Sales and Marketing

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Rainmaker
6,613
Alline Birkel
Tacoma, WA

Thanks for sharing from your point of view, Keith! I know a handful of wholesalers, but have not taken the time and care to create real relationships with them...yet. I totally see the value in it for both the wholesaler and the agent. This post has opened my eyes to another avenue in real estate.

Thanks!

Nov 29, 2020 01:07 PM #16
Rainmaker
1,644,676
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

This is interesting, and you've sparked ideas for many agents today! I'm not an agent - I'm a copywriter who writes for agents, investors, lenders, etc. - and I think you've given me a bit of an idea as well.

Thanks - and welcome to the Rain!

 

Nov 29, 2020 01:20 PM #17
Rainmaker
4,094,106
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good evening Keith Sant ,

First of all "Welcome to Active Rain" and "Congratulations" on a well written post that is definitely featured worthy. You have brought to our attention a whole different group "wholesalers" which I venture to say many of us haven't even thought about getting to know.More valuable than we ever imagined.

Nov 29, 2020 02:07 PM #18
Rainmaker
6,415
Keith Sant
Kind House Buyers - Tacoma, WA
Real Estate Problem Solver And House Buyer

Thank you Kathleen Daniels, Probate & Trust Specialist! I was reading your latest post a little bit ago and loved it. I was about to comment but got distracted. I'll make sure to do that! I work with a lot of probate attorneys that send me referrals. The house I just moved in to was actually a referral from a probate attorney. She is the sweetest lady and the first seller who sent me a gift!

 

Nov 29, 2020 02:39 PM #19
Rainmaker
1,497,341
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Keith Sant - Welcome to AR and congrats on the feature. Very impressive for your first post!  I have a listing that is pending but it had a couple of low-ball offers from investors.  I finally had to let buyers know that my seller was not interested in low-ball offers.  You are correct that there is a market for sellers such as those you mentioned but Tammy Lankford, hit it on the head for most sellers right now. 

Nov 29, 2020 05:28 PM #20
Rainmaker
6,415
Keith Sant
Kind House Buyers - Tacoma, WA
Real Estate Problem Solver And House Buyer

Hi Sheri Sperry - MCNE® - Thank you so much!

 

Good for you for standing up for your client and getting as much for your client as possible!  I am not a negotiator and I hate to be lowballed. It's super insulting and as an investor, I do not make "low-ball" offers. I want to do win-win deals with members of my community and I almost always beat other investors' offers. I do volume and not try to "get rich" off of a couple of deals. Unfortunately, not all investors are built the same, just like all agents aren't built the same. 

Have a blessed and productive week! 

Nov 29, 2020 07:26 PM #21
Rainmaker
1,728,304
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty - Kalispell, MT
The House Kat

Welcome to ActiveRain! Congratulations on your featured post!

My company has a program that specifically works with wholesalers, although it is not available in my state yet. Some sellers really don't care if they're not getting the most money they can - they'd rather get rid of the house and move on. So having a program to use in those situations is a good thing for sellers.

Nov 30, 2020 06:09 AM #22
Rainmaker
2,953,026
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Thanks for the follow, Keith! I agree totally! Wholesale is like any other business and should be respected!

Nov 30, 2020 08:26 AM #23
Rainmaker
661,431
John Marshall - FORE!
LoKation Real Estate - Cherry Hills Village, CO
Specializing in Golf Course Properties

This is a great post, let alone first post, welcome. Our brokerage has a handful of agents that work with wholesalers, and they do a lot of business and now I see why. Thanks for sharing your insight.

Nov 30, 2020 09:13 AM #24
Rainmaker
3,246,849
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Welcome to the ActiveRain community. Congratulations on your first post.

Nov 30, 2020 05:45 PM #25
Rainer
521,475
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

What really matters are the opportunities to help people get what they want, the more opportunities, the more opportunities to succeed. So, restricting any opportunity that's profitable doesn't make any sense, however, you'll never know what you don't know until someone teaches you what you don't know. Regardless, insightful post. 

Nov 30, 2020 11:07 PM #26
Rainmaker
3,535,842
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Welcome to Active Rain, pretty impressive to get first post written and get it Featured.... wish you all the best... just to be clear not a fan of the concept... just like I am not a fan of  discount broker concepts either... I know I am the only opposing view.... all the best and may you do well on AR, Endre

Nov 30, 2020 11:35 PM #27
Rainmaker
1,678,196
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

I haven't met any true wholesalers. We have companies here now that buy low, hold it, sell it, fix it, whatever & they have their own licenses so they don't need us. 

Dec 01, 2020 08:29 AM #28
Rainmaker
6,415
Keith Sant
Kind House Buyers - Tacoma, WA
Real Estate Problem Solver And House Buyer

Lyn Sims That makes sense. Last year there was a law passed in IL that all wholesalers needed to have a license. I think it was a good move that holds wholesalers to a higher standard of ethics. 

Dec 01, 2020 08:56 AM #29
Rainer
95,081
Erik Hiss
Keller Williams Capital Partners Realty - Worthington, OH
You can trust me for all your real estate needs!

You hit the nail on the head when you said "the ethical ones anyway." We as Realtors have a code of conduct to follow and a license to get...anyone can wholesale and although I've helped many and quite honestly bought from them we should be weary of the 'unethical' ones. Good food for thought though!

Dec 02, 2020 05:52 AM #30
Rainmaker
161,238
MeLisa Minter, Realtor
Minter Real Estate Services - Taylor Lake Village, TX
Bay Area Houston Real Estate Agent

I love this post Keith!

I have avoided wholesalers for most of my career, especially after several encounters with some unscrupulous wholesalers. But I must say that one of those unscrupulous encouncers did lead to me becoming the listing agent for a seller and we are still really good friends to this day.  

After reading your post, I must say that I am more inclined now to revisit whosalers, but from a different angle.  

 

Congrats on the feature.  They usually take years to get! LOL!

Dec 04, 2020 06:48 PM #31
Rainmaker
2,231,216
Joe Jackson
Keller Williams Capital Partners Realty - Columbus, OH
Clintonville and Central Ohio Real Estate Expert

Thank you for this! Wonderful post! 

Dec 10, 2020 05:50 AM #32
Ambassador
3,988,893
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Good Morning! I am just popping in to see if you have any new posts, Keith! 

I hope you're having a great week!

Dec 22, 2020 08:35 AM #33
Rainmaker
162,467
Kris Collis, Associate Broker
Smart Way America Realty - East Stroudsburg, PA
Professional Results you Expect 570-801-5525

Hi Keith Sant You would be an excellent person to write a blog on developing relationships with probate attorneys. Hope to see you back in the Rain here soon.

Feb 24, 2021 08:49 PM #34
Rainmaker
1,591,733
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

That was very thought provoking, and you're a good writer - let's hear some more!

Mar 03, 2021 12:29 AM #35
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Rainmaker
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Keith Sant

Real Estate Problem Solver And House Buyer
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