Question for Real Estate Agents Who Wholesale Properties

[Anthony Kirlew]

I am curious to know how those who are licensed agents handle the issue of wholesaling. I am a licensed agent and just starting out with wholesaling. Does anyone see a conflict in buying a property from someone at wholesale and profiting as a middleman when in theory you could have brought the end buyer to the seller as an agent? 

I understand that no one can guarantee a quick sale as an agent, but essentially, you are performing the same function in finding a cash buyer to take over the contract.

Help me put my mind at ease :-) Thanks!

[Mindy Jensen]

Hi @Anthony Kirlew . It's nice to see you here!

As a licensed agent, you need to first make sure your broker is going to allow you to do this. That would be the first place to start.

I do see a conflict with buying at wholesale and then reselling - if that isn't the seller's idea. There are plenty of properties that people just want to be rid of, and if you can close quickly, that's the most important thing to them.

Being an agent comes with Fiduciary responsibilities, meaning you must put your client's interests ahead of your own. Buying low, knowing you can get more money for it does not accomplish this.

Presenting the choices so the seller can make an informed decision is a way around this. 

"I can buy it from you for $50,000 and close in 1 week. Alternatively, we can list it on the MLS, perhaps get $55-65,000, and close in 30-90 days."

They choose which plan works for them and their needs. 

I would definitely get them to sign something stating you presented the offers and they chose the cash in a  week route, for anyone who chooses that way. You don't want them to file a complaint against you later for  "stealing" their property.