New Wholesaler: Dilemma and Thoughts

[David Washington]

Hello. I'm new to the forum but not particularly to Bigger Pockets. I have been lurking but have decided to get involved because of me and my wife's desire to begin real estate investing. My focus will be wholesaling and it is a focus. I do not and have no desire to buy and hold and I'm not particularly interested in doing fix and flips at this time. Wholesaling works better for my long term goals.

However, the one thing I'm seeing is almost an aversion to wholesaling. There is a sense that it's not that great or more it's like the red-headed step-child of real estate investing. To be honest, that's one reason I want to get into it; to figure out the ethical, honorable, and lawful way to do it and do it successfully. To be “that guy” that does it right through and through.

I live in Toledo, Ohio. In my research, I found that Ohio is cracking down and I can understand why. I'm convinced that to wholesale correctly, lawfully and ethically, it's better to get a real estate license, especially in my state. There are other reasons I have listed. I wanted to get around that by legitimately getting my real estate license before I do anything but now I'm betwixt two. I don't know if I can wholesale without splitting everything with my broker. I can't become a broker out the box but the reason for getting my license was to do wholesaling so I can disclose upfront what kind of agent I am, not to list homes in the traditional way or to represent myself as a buyer when, in fact, I'm not. However, you have to have a broker sponsor you in order to get your license. 

My question is do I, in fact, have to split my wholesale fee with the broker? Is this on a broker by broker basis which each broker having different criteria (I'm assuming it is)? Anyone a real estate broker or real estate agent who would have an answer to these questions?

Thanks ahead of time. God bless.

[Jay Hinrichs]

@David Washington worrying about broker split means U have not researched broker splits.

one of our BP members has a REal estate company in Toledo called List and Sell real estate.

he charges flat fee of 199 a month and you keep 100% of what U make.. how can that be too expensive to be in the industry licensed and legal.

@Tim West no disrespect but wholesaling is NOT a profession.. its simply the wild west with all sorts of actors .. from really bad to nice and good. No one monitors them .. no associations.. no peer presure to do the right thing  actually the opposite.

some of the tidbits I see from wholesalers offer this kind of advice.

1. Ghost ads to build buyer list

2. Never disclosing your not acutally the buyer ( biggest fraud on the planet in my mind)

3. Subject to your partners approval  partner being your Labrador retriever.

4. Setting up inspections that are really potential buyers.. ( again just flat lying to sellers)

this is why this is such a stain on the whole real estate industry.. these are the techniques taught to folks who either lack moral compass or just plain don't care and its all about the benjimans to them.

as you know in your state working with anyone is foreclosure the laws are intense on who and what you can do.. does that stop people no..

advertising a home bed bath etc that yoiu do not own is basically illegal in all states period. Just read the regs.  friend of mine in Oregon got a big fine and cease and desist doing this.. Neighbor turned them in..