% of Wholesale Assignment Fee to Real Estate Agent

[Nina Grayson]

BP Community, 

Do any agents in CA receive a % of an assignment fee from wholesalers for finding properties, and if so, how do you have it written in the/a contract?  Are you also a buyer on the contract?

As an agent, I have a fiduciary responsibility to my buyer or seller in the purchase and sale of a property.  As a wholesaler, I am a self-represented investor, and as long as I disclose in my cover letter to the seller that I am a licensed agent, self-representing, that I have a financial interest in the transaction, and that I am not representing anyone else in the transaction, I can do wholesale contracts.  

I met a reverse wholesaler (has a cash buyer and is looking for properties) who asked me to work with her in finding properties and she would pay me a % of her assignment fee.  

In order for me to be paid a % of the assignment fee, I (or my LLC) would have to be one of the buyer's in the contract. Otherwise, receiving a property/seller finder's fee on a contract other than a commission is not allowed as an agent.

[John Thedford]

Everybody is a "buyer" even if they don't have a dime:)