Wholesaling - Real Estate Agent or Wholeseller?

[Nick Mazzarese]

I recently read an article in a local REI magazine in Pennsylvania written by an attorney who is representing a few wholesellers who are being investigated by the Real Estate Commission for acting as unlicensed real estate agents.

The article reads that it is not yet illegal to assign a contract in PA but if you try to make a business out of this then your assignment contract is misrepresents your intentions to the seller.  

Is there a way to stay within the perimeters of wholesaling without being dinged by the Real Estate Commission for acting like a RE Agent?  I have heard that selling a contract vs. a property is a main differentiator between wholesalers and real estate agents.  

How do you show your wholesaling fee on the HUD-1? Assignment fee? Consulting fee? etc..

Or is there a way to keep the assignment off the books and if so is that the best way to collect an assignment fee?