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Updated over 9 years ago on . Most recent reply
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Wholesaling; Licensed or not Licensed?
Hello BP,
I was just wondering what everybody's thoughts were on wholesaling with a license and without a license. I ask because I currently have a license and am considering going inactive. I initially had it for the benefit of commissions and being able to list homes, but I'm finding it may not be as beneficial as I had thought being that the company is focusing all of its time on rehabs and wholesaling when at capacity.
What do you find the pros and cons of each to be relative to disclosures, marketing, bringing on new team members and how it effects your business?
I realize this discussion may have more parts to it than would fit in a blog post, but any information/direction would be greatly appreciated at this stage.
Thanks ahead of time BP!
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- Flipper/Rehabber
- Arlington, TX
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This is a big issue here in our company, where almost 70% of our WeBuyHouses.com investors around the country are also licensed.
In general, I think it's a good thing to have. If you don't want to list, you can still get referral fees. If you get 10 motivated seller leads, maybe only 1 will be interested in your cash offer, but 3-4 will ultimately list with SOMEONE.
Regarding disclosures. in Texas, it's not bad at all. There is no reason you can't buy houses for cash and also be licensed under a broker. We do disclose the license in all our marketing pieces, and even have a simple clause in our contracts to disclose it.
Legally, there can be a higher bar set for licensed individuals. But if you already act with high integrity, that should not be a problem.
If you let it go inactive, that's fine too, but I really think the referral and listing opportunities could make it worth keeping. My 2 cents.
Best wishes!