Real Estate Agent/Wholesaling

[Damien Cox]

Is it appropriate for a Real Estate Agent to wholesale an "as is" property that is not marketable on the retail market (due to poor condition, deferred maintenance)?  And if so, does there need to be a discussion with the broker since they would want a slice of the pie?

[Bryan Chuchta]

The short answer is no.  As a wholesaler you are not representing the buyer or the seller.  You have placed a property under contract to purchase and are selling your rights in that contract.  If you are selling the property as a listing agent then you are representing the seller and thus would fall under the normal parameters of a property listing and commission splitting.  If you are doing this while employed under a broker you need to discuss his/ her take on it first anyway but standard commission structures do not apply to wholesale deals because... You are signing a contract to buy the property, you personally, you are selling your personal rights to that contract, you are NOT selling the house.