Wholesaling agent, conflict of interest?

Question

I'm currently working on my real estate license in the state of Maryland, in order to facilitate my own buying (and eventually selling) of properties, in order to build an investment portfolio. I'd like to keep open the option of wholesaling some deals in the future. It seems to me that there is a conflict of interest. I think I know the answer, but I really want more details. Can I be a licensed real estate agent and also a wholesaler? Is it state specific?

The basic question is stated above, but I think it comes down to rules involving "non-agency" basically the idea that I am explicitly not the sellers real estate agent. Any information would be helpful.

Russell Brazil · Answer

Thanks for the tag @Andrew Michael. Even amongst seasoned agents I think you are going to get a difference of opinion. I feel that a licensed agent should stay away from wholesaling. I see many ways that your license could be put into jeopardy through wholesaling. An interesting note is that during the last couple of years I know that this was actually discussed by the Maryland Real Estate Commission, however they did not publish their decision.  This is often the case actually with the MREC, they like to keep things as ambiguous as possible so they can nail you if they want. Im not sure if that sounds too harsh, as most on the commission are actually pretty nice people...its just in Maryland the MREC's main goal is to protect the consumer....so with that protection comes a lot of scrutiny from the commission.

It is mostly a moot point anyways though, as you will find it incredibly hard to find a broker who will let you engage in wholesaling. And while many will disagree...your broker needs to be informed of all of your real estate activities whether it runs through your brokerage or not. So they are supposed to be aware of any off market sales you are doing, any rentals you own etc....because any real estate activity you are involved in can create a claim against the brokerages e&o insurance.

Andrew Michael · Answer

You will likely get several different answers on this as this seems to be an age old BP debate.  That being said, I know several agents who wholesale in MD, so yes it is possible.  I'm sure some of the more seasoned agents like @Russell Brazil can give you more details and specifics along with their opinions on this.

I think the key with agents wholesaling is to be VERY clear whom you are representing and where you interests lie.