How does Realtor get paid in 25;1 System?

The realtor gets paid when the deal gets closed. When you use a realtor to submit your offers, they become the agent of record and are entitled to a share of the commission. The exact amount depends on the agent agreement. MLS listings usually are split 50/50 between the selling agent and the buyer's agent. The seller pays the realtor fee. The realtor can get paid a second time if the buyer ( you or your assignee) fixes the house then lists it again for sale. ( This can be used as an incentive, if you are going to relist, to help the agent make up for the loss of commission amount based on your lower offer.) You want to take care of your agent so that they take care of you

Hope this helps.

Andy Sager
DG's AndyS
CFIC & IE member

I get this question A LOT!
AndyS answered it perfectly
When you assign a contract, nothing changes in the contract, the agent you used to make that offer is still the buyers agent. The seller will pay agent commissions and the two agents usually split that 50/50.
You also may have deals where your agent gets more money then you through income, and there is nothing wrong with that!
You are not paying your agent out of pocket/proft to cover their commission.

Hi everyone,

I just wanted to weigh in on this post.

I have a background where I work with many people all of the time. I would like to share the fact that if you always remember to treat every person in your transactions well, you will be "banking up" many financial returns in the future. You might just make some lasting relationships.

Kindness and courtesy go a very long way.

Stay focused

Thank you for this information. I just wanted to make sure the seller is responsible for the agent fees. When I crunch my numbers now I know to leave agent fees out.

Mahalo!

You still want to consider agent fees.
Because if you are wholesaling deals to buyers
when the fix and sell the property, they are likely to list it with a agent, thus they have agent fees
When crunching numbers you still want to consider agent costs, not for us but for your buyers.
Make sense?

Harold C & Andy S - thanks a lot for this information! I'm going through Dean's book 30 days to Real Estate Cash, and this question has been burning. Now I get it.

Would it be possible to give an example with numbers so that I can really understand:
- how much an agent will get in a transaction
- how/if to factor that into my profits
- how to consider the agent costs when crunching numbers to present to a buyer (from the 7/24/2013 post)

Thanks!