Wholesaling with a License within a Brokerage

[Ryan Mullin]

So my wife and I run a brokerage here in Indianapolis.  We do a lot of investor deals but we also do a fair amount of retail stuff..  flips and other wise.  Obviously we have to operate under a code of ethics as any other licensee would.  

We are looking into hiring an agent that is working on getting his license as we type.  

The agent is currently wholesaling and I know he wants to continue doing so.  My question is this...   What do I need to do / know / be aware of as the principle broker...?   If anyone else has experience in this realm I would love to hear thoughts.  

Is wholesaling something he should do completely aside from our brokerage? Obviously he would have to disclose he's an agent but could he operate his wholesaling business like an agent selling his own properties FSBO?

Do I need to charge him the normal commission split to cover any potential liabilities?  Or are we safer staying out of it... ? 

Is this a situation I should avoid all together and not have any of my agents wholesale at all?   I've always thought it would be easier to get a listing and move it... rather than pulling off a wholesale deal...  should I stick to that?  

Any feed back would be much appreciated.  I know there is going to be state to state differences in laws but I'm actually interested in the overall thoughts of brokers and wholesalers around the country..   As well as local thoughts and experiences!   

 Thanks in advance BP community.   :)   -Ryan  

[Ryan Mullin]

@Mike D'Arrigo   Good insight.  I was thinking about that too...  if they get it under contract and sell the contract they are almost demonstrating that they knew it was worth more than they told the seller.    But...  if they go into saying "hey this is worth 50k but I will buy it right now for 45k"   ...Thats kinda how I present myself when I do direct mailers.   I also always offer to list it at the higher price too... and they never want to do that.  They want fast cash.