Turning Wholesale Leads into RE Agent leads?

Question

Hi BP!

I've read some of the topics in this forum and heard some people mention that as a realtor and wholesaler, they sometimes find that their wholesale deals are better suited for retail deals. That makes sense.

My question is, let's say I'm talking to a potential seller on the phone and disclose that I am a realtor but am wearing my investor hat for this transaction.  If I find that the seller is not willing to sell at my price, but still wants to sell, can I than put on my agent hat and offer to represent him and list his/her house?  Or is their some kind of conflict of interest there?

Is there a problem with the way the transaction started, since I advertised to him with my investors hat on?  Obviously my broker would have a say in this as well, but I'm curious as to what you guys experience is with this.  Thanks!

Rich Wahl · Answer

@Wayne Brooks  Thanks for the quick response!  I knew the reverse order was a problem since while you are representing them you need to act as their best interest (and obvious net listing issues).

I was just making sure that law didn't dictate that you had to initiate contact under your realtor hat or realtor company first in order to represent them.

If I understand the concept correctly:  It's kind of like trying to go through a wholesale deal, realize that they aren't motivated enough to sell to you, but recommending them to a good RE agent that can help them sell at list.  That good agent would be you instead though.

Jason Lawrence · Answer

Great question Rich. I'm glad you asked. I will be a realtor shortly and was wondering about this very issue. Thanks again and good luck.

Wayne Brooks · Answer

That's perfectly fine.  The reverse order is a problem.