Why don't wholesalers just get a real estate license?

[Jason F]

I've always wondering why wholesaler's don't become realtors?

Sure there is more work involved but you can make 3 to 6% on most of your deals, which might be better than the 'assingment fee'. Also, you are able to reach retail buyers on the MLS who might be VERY willing to buy the properties you find because they are cheaper than most others.

Do more rules apply? Are the brokerage/operating expenses to high?

It just seems that after a while of people knowing that you are a person who finds really good deals, people that aren't "motivated" to sell would start using you as well. You can still contact motivated buyers and align them with your investors.

Any thoughts?

[Richard Warren]

Originally posted by "gainesvillej":

I'm saying why don't they use their marketing techniques (bandit signs, mailers, birddogs, etc).

When you are a real estate agent you have to follow rules regarding advertising. They vary by state, but most require disclosure that you are an agent. So a bandit sign or ad would have to state the name the real estate agency to be legal. That would drastically reduce the effectiveness of the sign or ad.

There are a lot of other disclosure requirements as well and it would be a very difficult way to do business.

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