Wholesale Listed Homes


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  • Hi all,

    Is it possible to wholesale listed homes with agents by finding out the owner’s information and contacting them directly?

    If not, how would you structure a purchase agreement with a real estate agent?

    Does anyone have experience using listing sites to find distressed properties, or are you really able to find them off market somehow?

    Thanks in advance!

    Adam,
    When I went door knocking with Bill Cook this last August we made offers on every home listed with a Realtor in the neighborhood we canvased. Just because it is listed with a Realtor does not mean you cannot put in an offer. We made two offers on every home. We made a discounted cash offer and and a full price term offer. My favorite two areas to find distressed sellers is vacant houses and probate. You can construct your own data base which I find more reliable, or buy one from a company like ATOM data.

    I imagine Realtors will advise the owners not to sign an option agreement? Can I put a commission in the contract for the Realtor?

    Thanks

    You can add an addendum spelling out your terms. Bill Cook uses this with deals under listing. I thought I had it in his paperwork from my door knocking experience with him but I can not find it. I will reach out to him and see if he will allow me to share if he gives it to me again.

    Thanks! I think I can add that to the special provisions section in Jackie’s agreement template.

    If you are able to find yours I’d be happy if you shared it for reference.

    Personally, I would AVOID any house that is listed.

    The seller has signed a listing agreement with the agent agreeing to pay usually 6% commission if the house is sold within the listing time frame. There is rarely enough spread in the deal for you to make a profit and the agent to get their 6% plus the seller paying closing costs.

    When a seller of a listed house signs an agreement with you, they think they do not have to pay the agent since the agent did not produce the buyer. But they usually do..and that will KILL the deal.

    If you have a wholesale buyer already lined up, but the deal falls apart at the last minute because the seller discovers that they sold to you at a discount AND still have to pay 6% to the agent (who did not do anything), then will back out.

    The wholesale buyer will never buy anything from you again, they will tell all their friends to not buy from you. — — you have just ruined your reputation.

    Avoid listed properties. Wait for them to expire or tell the seller, if your house does not sell during the listing period, please contact me as soon as the listing expires so I can buy your house.

    Jackie,
    I tend to agree with you with listed properties. I think there are probably two reason Bill talked to so many listed houses on or door knocking experience. One is I think he wanted people to see how you talk to a potential seller. He was using it as a teaching tool. Also to dismiss the fear factor that people will talk to you and there is nothing to fear talking to people in general. Two is he wanted to get something in the sellers hand if they let their listing expire. These are just my thoughts.

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