Legalities of Wholesaling WITH a Real Estate License

[Sara Thompson]

Hi all!

I'm new here, but not new to real estate investing by any means. I have been discussing wholesaling in depth with several local investment associates and the question I always come back to is: 
What are the legalities of wholesaling when you have a real estate license?

Specifically, I'm a licensed broker in Georgia and Alabama and I am interested in wholesaling in both states. Obviously, disclosing the fact that I am a licensed broker is required in contract but what other items should I be mindful of? I'd love to hear from someone who has been successful in wholesaling and holds a real estate license to lay down the ground rules so I feel comfortable moving forward.  

Contracts/proceeds would of course be issued through an L.L.C. and all aspects kept separate from the actual brokerage. 

Looking forward to your responses!

[Ned Carey]

The legality of wholesaling comes up regularly in these forums and there have been a couple of very active threads just recently. Take what you read with a grain of salt. That includes what i say because i am not a lawyer.

Are Net Lisitngs allowed in your state?  Wholesaling could be construed as a "Net Listing"

Also in most states, agents are required to deal honestly and fairly with the public. Would that extend to telling your seller that you know it is worth more than you are offering and you intend to quickly resell it for more? 

Both of the above are hypothetical questions. The answer may depend on how liberal the judges are in those states and how they tend to rule.  

I personally believe that if you are assigning contracts as an agent you are probably putting yourself at legal risk. If you are double closing on the properties, my guess in most states your risk is minimal.

PS I see this is your first post welcome to BP