agents

[Ronnie Neal]

Are RE agents limited when it comes to investing?

[Robert Leonard]

Yes and no. A lead that comes to an agent for their property to be listed, should not convert to a wholesale for the investor/agent. Here's the exception to that idea: If a seller is so motivated that they want to sell their property at a wholesale price, even after you inform them of the retail FMV of the property, an ethical investor/agent could buy the property and satisfy their client's desire for a quick sale and would list the property as a presold listing and give the broker their share of the deal. That property could then be sold at a wholesale price by the investor/agent.

The two main concerns are your fiduciary responsibility to your client, the seller and your responsibility to your broker.  As an agent, you have a fiduciary requirement to do what's in the best interest of your client, the seller.  A broker bears a considerable expense to generate leads that an individual investor/agent should not convert to a personal investment lead and cut out the broker.

If you do your own lead generation as an investor/agent specifically for investment purposes, you can, disclose your licensed status, and invest just like any other investor.