Wholesaler vs. Real Estate Agent - California

[Alex Capozzolo]

Hey BP !

The Situation: 

I am gearing up to take my California state exam to become a licensed Real Estate Agent this month. However, a few months back I fell into wholesaling, and enjoy it quite a bit! Many people say that the two conflict, and some say it's even illegal to do both. I've heard of some agents who even went back and cancelled their licenses to return to a pure wholesaler. So that may leave me with a decision to make. I am interested in doing both simultaneously, but my first priority is doing it right and following the rules. I've searched through tons of previous posts, along with some google searches, and can't find absolute answers to this potential conflict. So before I begin to read the 800 pages of California Real Estate law - CalBRE Law - I thought I would ask the experts of BP first !

Here are some Yes/No questions that I am still searching for definite answers too:

1.) Marketing material (yellow letters, flyers, etc) - As a licensed agent, I need to always disclose I am a licensed agent upfront on the marketing piece?

 - From some of my call backs from yellow letters, many people say they would not have called me back if I were an Agent. 

2.) Wholesale closing period - During Closing, if I'm a licensed agent and attempting to wholesale a house through a double escrow closing, I need to disclose to both parties the profit that I am making as a wholesaler in the transaction? 

- I know agents need to act in the best interest of the principal and not abuse their knowledge to make profits on principals. 

Curve ball:

I've partnered with a local Wholesaler who does his wholesaling through his LLC.

If I become licensed:

3.) Can I still send out letters myself but have the letter be addressed and sent from his wholesaling LLC, and he field the calls himself?

3a.) If so, can I have him take the seller through the entire wholesaling process and we split the profit?

3b.) Can I still help him out with any of this process, or do I need to be completely removed?

Thank you so much BP, sorry this was long, just want to get my facts straight!!! Any feedback is appreciated :) good luck in 2017 everyone