Wholesaling as a Licensed Agent

[Kelvin Letron Brantley]

After 4 months of class and testing, I finally just received my SC real estate license.

Are there are any potential ethical dilemmas to negotiating with a seller for a wholesale price on their property within the state you are licensed?  In other words, would it be an ethical conflict to negotiate a wholesale price vs working with the seller to get them as much as they would be able to get for the property.

Also is it required to disclose to a seller that you are a licensed agent if you are working a deal in a state that is not your license state?

Thanks for any assistance.

Letron

[Andrew R. Lucas]

@Kelvin Letron Brantley I too just became licensed and have been discussing this with an attorney and Broker.  

Here is how we do it:

Yes, there are ethical issues that could arise.

We always speak with sellers as an Investor that is willing and able to purchase their home.  We may hold or wholesale.

However, we don't make an offer to buy unless we feel the seller is willing and able to sell at a deep discount.

If they are not then we may decide to approach seller as an agent that can represent them to get that top dollar they are looking for. 

If we make an offer as an investor, we don't go back and try to be their agent.  That seems shady and unethical.  We would refer them to someone else at that point. 

We disclose to everyone.  Its got to be on 1st page of the contract. No need to hide anything.  Thats  when people get in trouble.  

Hope this helps!