How does commission work if you are a licensed real estate agent wholesaler?

[Michael King]

Hi everyone,

    I am a licensed real estate agent in the state of MA. I am in the preparation stages of starting up a wholesale business. I have almost everything I need to begin, basic knowledge, attorney's to ask questions to, all the forms/contracts, etc., but there is still one thing that confuses me. I am a licensed agent and I hang my license with a broker, how would the commission work if I am the principal in these wholesaling transactions? My first few deals I plan to use a long term lease with an option to purchase to lock up the properties, and then either assign the entire contract to someone else, or retail the property to an end-user.

    I spoke with my team leader about this, and got a very brief explanation about it. Basically he said that I would essentially be representing myself as a buyer's agent in the deal which would require the seller to pay me a commission. But I don't quite understand. Can anybody help me with a step by step as to how this process would actually work?