Broker License VS Realtor License

[Shaun Dewitt]

Hey all, in researching wholesaling and general RE investing I've been seeing a common pattern that I would like to some clarification on. Would it be correct to say that a RE license can get wholesalers into trouble while a brokers license can keep wholesalers out of trouble? Since having an RE license gives said agents a fiduciary responsibility toward the homeowner/seller, they can't in good ethical conduct commit "equity stripping" in order to get the home under contract at a price far below the market value. BUT in putting deals together some say that wholesalers, if not careful, can slip into brokering their homes and therefore a brokers license can keep them safe. It also seems that there are some gray areas more in the brokerage issue than the RE license issue, essentially being a universal statement from investors across the board. Thanks for any and all input!

Shaun 

[Russell Brazil]

I think you have a misunderstanding of the two licenses.  In most states this is applicable.  A real estate agent license is the entry point to the industry. As an agent you work under a broker.  After X amount of time (3 years in my state) and further education, you can upgrade to a brokers license, which means you can if you so choose open your own brokerage.  The difference between the two licenses will have no effect on wholesaling.  What is valid for one, is valid for the other license.

I will let others chime in as to whether the license does actually have an affect on your ability to wholesale.