The Legality of Wholesaling

[David Pupo]

Thought I would touch on this topic because of a conversation I had to other day. So I am licensed and working for an investment brokerage here in Florida. I received a call yesterday from another real estate agent who does wholesaling on the side asking about the services our realty brokerage does. 

We spoke for a while and I mentioned to him that I tried doing this on my own for a while but then switched to a brokerage to pursue it full time. He asked me why I made the switch since I could've made so much more money being by myself? I simply replied you're right but its also illegal to do it with or without a license and especially not being under a licensed broker. He was puzzled to hear that information which confused me since he was ACTUALLY licensed! If someone can be confused on this topic and was licensed, imagine someone who hasn't researched the topic!

So yes is it illegal in Florida to do wholesaling if:

A.You don't have a valid/active real estate license and are MAKING commission or profit off of a real estate transaction. 

B. If you are licensed and not under a broker and started your own real estate business (which was something I almost fell into so glad I checked it up!) 

Please make sure you know who you are doing business with or to put it simple Caveat Emptor.