Can i still Wholesale deals with a RE License??

[Kahil Ortiz]

Hello! I'm a 26 yr old beginner in Real Estate, and have worked on several wholesale deals. Recently i have decided to go for my RE license. In my few deals in wholesaling in Chicago i have ran across some Brokers who also say they are Wholesalers as well. I wanted to know how does this dynamic work? Also when i complete my License will I, as a Broker, Still be able to Wholesale deals?? If so, how do i do so and remain Ethical and Professional. Obviously since i have been wholesaling, my mind tends to lean towards investing and making a Profit for Myself rather than working on behalf of a Seller...any advice on how i can use my RE License to help me flip properties, and propel me to be a Great Investor?? 

[Chris Farrugia]

Just a couple of things.  When you complete your license, you're going to be a sales agent and you'll work for a broker.  There's a big distinction there because your broker is who sets the rules for you.  That's why it is important to pick the right brokerage. Also, here's how to get an Illinois real estate license.

With that out of the way, there's absolutely no reason why you can't wholesale deals with a real estate license. In fact, you're setting yourself up very nicely by getting your license. First of all, you're not going to save commission when you buy most of the time (since you'll likely not be buying listed property. However, you're going to turn it around and save yourself the commission (at least half of it) when you sell! Furthermore, you get to decide how it shows up on the MLS and you'll build a lot of valuable relationships with other agents that are going to help you immensely.

So why do people say that you don't want to have a real estate license when you wholesale?  The most common answer is that it's a conflict of interest in that you have too many disclosures.  This is simply incorrect.  All you have to do is introduce yourself as an agent and you've disclosed properly.  When you sell, you're going to disclose that you're an agent to the buyer.  That is literally as simple as, "Kahil Ortiz is a licensed real estate agent in the State of Illinois."  Now, I'm not a lawyer and I highly suggest you speak to one when you start wholesaling but that's the main idea.

Disclosure, disclosure, disclosure.  That's going to be the key.

The other reason I hear is people crying that you pay so much in fees that it cuts into your profits.  That's ridiculous!  The money you save in commissions on one deal will likely cover your license expenses for the entire year!

Now, as far as how you can use your license to help you make more money... you will be a member of your local board and take advantage of the board's classes!  Every board I've ever seen offers a wide range of classes.  In fact, I'm going to one next Friday called, "How to jumpstart your real estate career."  Why would I go?  Because it's a short investment of my time and if I get one or two pieces of advice, it could means thousands and thousands of dollars in return.

Next, you will have INSTANT access to the MLS. You'll have chances to jump on deals long before a lot of your competition has woken up in the morning. That's a big deal and one you will learn to love. It's great walking into a new listing and not seeing a single card on the kitchen counter. You've beat others there!

Best of luck, Kahil.  Go get that license.  It's worth every penny!