RE Licensing and wholesaling

[Janet Emerson]

I am a rare hybrid breed that is a realtor and works in the wholesale market, and flip houses as well.  I generally don't advertise that I am a realtor when working on wholesale deals, except with my buyers, whom I usually get through my broker and their paid-for leads. My questions are these: 1) What specific risks do I face being a realtor and wholesaling? I have a license in Florida as well that is not hung with a broker. Florida seems to be more strict with wholesaling without a license. Does that license need to be active (hung with a broker) to be considered legal, or is just having the license enough? 

[Janet Emerson]

My last broker made me have a full disclosure form signed that told the seller they could get more for their property and the buyer that they could pay less for the property. I believe it even had our fee so there was no question. They were not very comfortable with the off market deals. My current broker is fine with the finders fee agreement between the wholesaler and the broker. I tell my buyer what my cut is, which is usually under $2000. I don't have access to the seller, but everything is disclosed on the Settlement Statement. I think transparency is the key in staying out of trouble. Not all wholesalers operate that way. Not sure what PSA you speak of.