How should a Licensed Realtor start out with Wholesaling

Question

I am a new Realtor in Florida and wondered what would be the best strategy to implement when looking to begin the REI journey outside of being a typical Real Estate agent?

Robert Smith · Answer

This is very possible, and I speak from direct experience. When talking with owners I always give them the least worst option close. I tell them there are many ways to sell a property however there are pro's and con's to each way to sell and I pitch them the option to sell to me as an investor. I don't want them coming back later and saying I did not at least let them know they could have received more money for the home, but I make sure they know when I buy the home there are no repairs needed and it is for immediate cash out when a traditional sell could take much longer. I have them even sign disclosures that I am an investor and they acknowledge that I am a real estate broker working for my personal interest instead of as a licensed real estate agent. Disclose, disclose, disclose. Real estate is my lively hood and I make a good living as a broker so I am not going to throw that away over a few dollars. Worst case if you cannot get the wholesale deal you could get the listing. Being an agent give you an advantage to finding more deals and ultimately helping more people, that is why I work as both. Get everything you do in writing and remember to have them acknowledge you are an agent and working on your personal behalf. Most agents only see inside the traditional box, good job on thinking outside of it.

Tyrone Evans · Answer

Thank you for the post.. I am a part of the club as you say :-)..

Brent Hill · Answer

@Robert Smith  Any chance you might share the disclosures you use?  Thanks.

Brent Hill · Answer

@Jay Hinrichs   Wasn't trying to imply not to follow the rules of the FREC and NAR Code of Ethics.

@Robert Smith Make sure to read Article 4 of the National Code of Ethics and call your State Real Estate Commission to get clarity and your own RE attorney and your broker.

Curt Davis · Answer

All I am saying is that regardless of how you buy or whatever the capacity, I think you have to just disclose to the seller or buyer your a licensed Realtor.  I do it just to make sure I have covered by own A*@

Good luck!!

Brandon L. · Answer

@Tyrone Evans by researching local laws so you do not violate them

John Thedford · Answer

@Tyrone Evans

There is NO option. You MUST disclose you are a licenssee in any transaction regardless if you are seeking a listing or even if you are purchasing property for yourself.  Of the ten most common reasons agents get sued, one is FRAUD and the other is misrepresentation of value. Get advice from your broker on the best way to jump start your career.

Kimberly Gopp · Answer

@Curt Davis, @Robert Smith, @Brent Hill, @Brandon L., @Jay Hinrichs  So let me  address a key word in this post and in the title..."Licensed Realtor" ...this title does not exist.  Sure, we hear it all the time from the general public in conversation. However, those holding a professional license should call it as it is; a "Sale Associate" or a Real Estate Licensee. As a licensee ... you may be able to call yourself a "Realtor", that is only if you have joined their club. However, that club did not issue you a license; the state issued you a licensee.  So in Florida @Tyrone Evans you hold a Real Estate License... a  Sales Associate License. also your not called a real estate "agent" (unless you have entered into that disclosed legal relationship). In Florida "Agent" in a residential real estate transaction has legal association attached to it; duties & liabilities. Licensees in Florida should  move away from using the word Agent any longer. Throwing that word around in conversation and in emails with your deals or with "customers" (not called "clients"- also implies a legal relationship) can come back to bite you.   And yes, disclose! As Mr. Walt would say? True or True?

Tyrone Evans · Answer

Wow Thank You Robert for stopping in and posting this great information. Real Estate is changing and I wanted to really catch the wave and not be stuck "cold calling" all day and waiting for an opportunity instead of creating a few along the way. Awesome post!!! "DISCLOSE, DISCLOSE, DISCLOSE!!!!"

Jay Hinrichs · Answer

@Brent Hill  does not matter you still have to disclosure your an agent.  I have been a broker now for 42 years.. it has NEVER not one time caused a problem when I want to buy for my own portfolio...

as stated simply disclose you are buying for profit or loss.. and have them acknowledge that.

again we must be reasonable on valuations  unconscionable profits are still an issue whether your licensed or not... and of course its subject to a trier of fact  ( judge)

How should a Licensed Realtor start out with Wholesaling

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