Dealing With Buyers and Real Estate Agent

I'm not really sure that I understand the question, but here is the answer to what I think you’re asking.
When filling out the contract you will add the “and or assigns” to the buyer line. This will alert the realtor that there may be someone else involved in the transaction. That is the only information I share with them. If they ask, I will share that my partners and I are working these properties together.
In regards to making sure you don’t get cut out of the deal. You can either have the property under contract before talking to your buyers about it, or you have them sign a non-circumvent agreement.
Hopefully this answers your question. Good luck!

It's Deans yellow book. click on store up at the top of this page.

or look for threads on this site; on the top left there's a 'search/enter' box, type the word 'wholesaling' and you will see many threads come up... read any or all; there is an immense amount of great information here, but you have to do your homework...

In order for investors not to go around you, you need to put the property(ies) under contract... again, this will be explained in any of DG's books or on this site under wholesaling.

Wishing you success,

Hi Prime,

First with your agents get an agent who is investor friendly, someone who works with and has experience with investors. That way they understand what a Assignment of Contract is. That way they will know how it works and you wont have any problems explaining it to them.

Second, with your buyers get the properties under contract so you have control of the deal and can't be cut out or circumvented by them. You should know what your buyers want, go out and find it, evaluate it, and put it under contract before you tell about it. That's the best way to do this. The assignment of contract is done between you and your buyer, your agent is not involved with it.

Hope this helped. If you still have questions call the advisory line at 866-573-5726 we will be happy to help you further.

Thanks,
Shah Ali

Some great advice included here, I would like to add another dimension to why it is so important to place properties under contract before sharing specific information about them with buyers.
If you are not acting as a principal in the transaction, you are acting as an agent. Unless you are a licensed real estate agent, you are not allowed to act as an agent, it is against the law. And many real estate agents feel threatened by investors and will report any infractions, which creates issues for you.
Our strong encouragement is that you always do things legally, morally, and ethically, please do not compromise on this rule. Place the properties under contract, and then let your buyers know. If they want information, you can provide generalities, let them know that since they are anxious, you will contact them first as soon as you have an agreement related to the property, but that you cannot break the law by providing them information that places you in an agent status.
Once the property is under contract, the law would say that you have an equitable ownership interest in the property, so you will be acting as an owner/principal in the deal rather than as an agent.

As long as the "and/or assigns" is in your contract, as Shah says, the realtor is not involved in the assignment at all.

You and the end buyer sign the Assignment Contract (this is when I get my assignment fee). You give a copy of the original Purchase Contract and a copy of the Assignment Contract to the buyer. Then YOU take the Assignment Contract to the Title/Escrow/Atty who is doing the closing. If you do not get your fee upfront, it will be dispersed to you at closing. The advantages of getting it up front are, you get it sooner and, if the buyer has skin in the game, he will be less likely to back out.

Keep in mind that properties that are SS or REOs cannot be assigned. For this reason, I recommend asking the realtor for Standard Sales (properties for sale by private parties) or working FSBOs. My first choice by far, FSBOs. You are in control without having to work within the parameters of a realtor.

Karen

I really concur with Karen on working with FSBO properties whenever possible. When I started as a real estate investor, I was taught that "Deals Happen when Buyers and Sellers Get together and talk." In the modern world, less of that talking is taking place, and the talking that does occur is being done by middle-men (agents) rather than decision makers.
While approximately 85% of the properties that are sold in the US are sold through agents, I would encourage everyone in the program to develop multiple lead pipes for available properties that are FSBO, and do not involve agents.
I just started my own blog in this website, and am transferring some of the better posts I have written over to that blog. One of these is called "51 Ways to Find Properties" and most of the methods on their do not involve agents. If you develop a little skill in dealing with sellers directly, I promise that your closing ratio and the numbers on your deals will look better than your deals through agents. This is not a negative toward agents, it is the mechanics of passing information back and forth through several channels.
Plus, using this approach forces us to be active rather than passive in finding properties. And that makes you much more effective as an investor.