What do you tell the listing agent about your wholesale deal? Are you kidding me? This is Real Estate Investing 101. Yet so many people ask us this.
We’re making this video because we actually had someone email us this question then about 4 hours later we were out inspecting a property with one of our coaching client and we got asked this same question again. (watch the video – full transcript attached)
I was actually surprised that we were getting questions like this. I thought that it was pretty much a no-brainer in terms of what you should be telling a listing agent…I mean we all know that the listing agent works for the Seller. So why is there even a question as to what you should be telling them?
I’m sure some of the fraud mongers will come out of the woodwork on this one but let them run with their conspiracy theories and stories of woe and doom. Frankly I don’t care what a listing agent thinks and neither should you.
Watch the video and learn what you should tell the inquisitive listing agent. I think we answer the question in a very direct manner that anyone can understand. Check it out.
So with all due respect we’re going to answer this question very bluntly! Don’t tell the listing agent jack about your intentions with the property. Frankly it’s none of their damn business. It’s nobody’s business but your own as to what intentions you have with the property.
However, since you asked, we’ll tell you how we would handle this and you can pretty much follow our script. Since we would never find ourselves in this situation please understand that we are writing this for YOUR benefit.
Maybe it’s better that we start off by showing you how to NEVER get yourself into this kind of situation.
1. NEVER tell a listing agent what you are intending to do with the property! Never! Make your contract offer do the talking for you.
2. Make sure your special clauses, terms and conditions protect YOUR bests interests to the fullest and allow you to manage the deal to YOUR satisfaction.
3. You actually should not be having any contact with the listing agent. We recommend that you have your Buyer’s agent handle all communication with the listing agent. If you are an agent buying as an investor, then prepare your normal disclosures but do not offer any information beyond those disclosures.
4.Make sure that you are in COMPLETE control of the transaction and that you either have the closing slated for your attorney’s office or at a title company of your choosing. There’s a reason that we only work with attorney owned title companies and this is exactly one of those reasons why…three words you need to remember. Attorney Client Privilege!
(I know some REO agents and asset managers require that title be done by their title agent. In those instances, make sure that you’re paperwork is solid and bulletproof!)
We usually buy out the Seller’s title agent in an REO so that we can control the transaction. Every REO that we purchase we make the offer to pay the Seller’s title company for the work that they have already done and they have only refused once.
It’s usually about the benjamins so make sure to try to get the transaction under your control if you can and ALWAYS make sure your paperwork is air-tight.
5. Make sure that you can actually close on the deal or have an easy out. The last thing you want to do is be seen as a flake running around town putting out offers that you can’t stand behind. If you do that people will get wind of it and you’re pretty much toast.
6. NEVER, EVER, UNDER ANY CIRCUMSTANCES whatsoever are you to ever make any utterance to any listing agent regarding flipping, wholesaling, double closings or simultaneous closings. NEVER!! It’s nobody’s business but your own!
So hopefully you now know what to tell an inquisitive listing agent.
If you have any more questions feel free to leave a comment or email us at questions@realestateradiousa.comand if you’re watching this on YouTube then subscribe to our channel and don’t forget to rate the video.
We’re outta here and we’ll talk to you again real soon.
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Wholesaling Houses: A Strategy for Real Estate Investors Wholesaling —Houses: A Strategy for Real Estate Investors at BiggerPockets.com.
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Hey Barry’s
Would saying something like i’m buying this for my own portfolio, or It’s going to be a rental, have any negitive effects. What would you say to be polite, or would you say it’s none of your business. This question is dealing with how are you building repore to train this realtor to bring you more deals into the future.
After you get a contract signed do you have a way to list it on the MLS to resell it retail before you close. Where on the same day your closing with your seller your also closing with your new buyer. When buying with the P&S agreement is there a way to relist or do you have to have your own buyers list.
Thank, GS
Hi Gary,
As for the first part of your question…If you’re a licensed Realtor then make the disclosure necessary and I would pretty much leave it at that. Do what seems to be required and you won’t have a problem. Why offer any information beyond that? Article 4 of the COE says that you (as an agent with an interest in the deal) shall make your “true position known to the owner or the owner’s agent or broker“. So a simple statement in the special clauses that says.. “I am a licensed Realtor and I have an ownership Interest as the Buyer or Buying entity will suffice.
The building of a relationship is easy. I simply tell them we are looking for other similar deals and as you can see we bring our deals to the closing table and accordingly you’ll make money brining me deals. Works every time as every Realtor loves to have a whale on the hook.
If you remember, we showed you our marketing letter. We try to go after homeowners who are not listed or whose listing is about to end. It makes the re-listing so much easier. For those props already listed and placed under contract, we use our internal Buyer’s list and don’t mess with trying to get the listing agent to cancel theirs. We’ve done it but it was like pulling teeth.
You MUST..and I mean MUST begin putting a buyer’s list together IMMEDIATELY. It’s real easy. Just set as many mousetraps as you can that are desinged to entice the fat yet still hungry mice. If you look on this site alone their are probably a dozen ways we cull names. And that’s just on this one site. We also operate a prominent site here in south florida that brings in dozens of buyers per week. We have a list of over 3,000 buyers..cash buyers that we work with. Obviously they each have their own criteria and timeframes so that’s where a good database program comes in so that you basically go shopping for props that they want. Sort of a real estate concierge if you will.
Very informative video!!
I really like the information on controlling the deal, and keeping your flipping intensions ‘under your hat’.
Thanks
Hi Val and thank you for stopping by and for your comment. Yeah…no one needs to know your business but you!