So the short version if OF COURSE it does! The trick is to work with the right agents. We have done many wholesale deals with agents involved. Sometimes they are listed, sometimes they are not. Sometimes the agent is the actual Buyer in either scenario investing for themselves.
Regardless of the scenario, it is good to know agents that are involved with the investor community. These agents can be an invaluable source of knowledge, Buyers, Sellers or any combination thereof. You want to know these people as they have Buyers for your deals as well. Sometimes people get hung up on the commission piece but if you have a good deal, that part is one of the easiest to work out. If it is a deal, it is a deal.
So what’s the pitfalls? In a nutshell, not many UNLESS you fail to disclose. In the real estate agent space, you are working with licensed individuals so disclosures are important. As long as you are doing good over the table business, it should go off without much issue. The other is their experience with investors as an agent or even their broker. Sometimes you will hear things like ‘wholesaling is illegal’ or ‘you can’t do ‘that’’ (whatever ‘that’ is). Almost without fail, this stems from a position of simply not knowing. People tend to say ‘no’ to that which they do not understand. This is an opportunity to educate so decide if it is worth it on a per agent basis.
And remember, not everyone is coachable so be prepared for some people to not work out. It’s nothing personal, nor should it be. But if you can help the ones that truly want to work, you would be amazed at how far a little education can go in building rapport and leading to do doing business.
In the end, I encourage wholesalers to work direct as much as they can but certainly make the most of agent relationships as well. There is a lot of power in their space so get in the middle of it and make some deals happen.