Investor agents - is paying a wholesaler fee unethical?

[Aundrea Newbern]

All,

I recently became a licensed agent, but my predominant source of income is investing. Prior to becoming licensed, I did many deals through wholesalers. This seems to concern brokers. Some feel that it is an illegal "referral" fee to an unlicensed party. Others agree it's a fee for an assignment of contract, and isn't an ethical violation. Brokers out there - what are your thoughts?

[Keisha Andrew]

I'm currently going through the same thing.  I have my license, but I want to wholesale.  I would just use your cash buyers list to wholesale.  Always disclose to all parties that you have a license and let them know there is no commission being collected.  You want to put down EM when you are wholesaling as well so that you will have equitable interest in the property. Wholesaling is always going to be a weird to everyone, until they want to buy a deal from you and agents will always be against it because they want to earn a commission. Hope this helps!