Best Brokerage for Wholesaling Real Estate Agent?

Question

I have been an agent at Keller Williams for the last 3 years and have done a bit of wholesaling on the side. I am now significantly more focused on my Wholesaling business, and less on my agent business. My broker used to allow me to collect my full assignment fee from the title company but now they're saying the check has to go through them first, and they want to take splits on it.

I am planning on leaving the brokerage to go somewhere that is more investor friendly, and somewhere with a broker who knows what wholesaling is. Does anyone have any recommendations for brokerages moving forward? I live in a small town and don't know that any of the local brokerages will be a good option. I have heard some of the more remote brokerages, like EXP might be a good option.

Rodney Clark · Answer

Hi @Emma Hustis, I am curious what you ended up doing?  I am looking to do the same and just wanted to see what your process is overall.  do you inform the seller you are an agent, and do you do it locally or virtually?

David Ramirez · Answer

Hi @Emma Hustis,

You are acting as a principal and assigning your entity's right to purchase to another entity or individual. The brokerage should be involved in the transaction. If you are using their contracts, I could see how they can ask you to comply, but you should hire an attorney to draft your own agreements and simply disclose to all parties that you are licensed but acting as a principal. You should be good with any brokerage.

Kevin Sobilo · Answer

@Emma Hustis, I suspect most brokerages will not allow their agents to wholesale because there is too much risk of being sued with virtually no upside.

As an agent, there is no reason to wholesale. You can list the property as a "net listing" and take the difference over what the seller is willing to sell for that way.