Wholesaling as an agent?

Question

Hey guys first off thanks for taking time to read this .

I have been studying wholesaling for years and have not took steps due to minor set backs. Point is I am thinking about getting my real estate license.

I am in New York City and I would like to know if it is a good idea to wholesale as an agent?

Should I invest my money on software and grind ,

Or get my license and use that to get into the field to get more knowledge hands on?

Please help guys. Thank you so much!!

Deynis De Leon · Answer

@Shawn Ackerman just like any other state. Attorneys .

I've heard of selling the LLC in the process before.

India Spivey · Answer

Hey Deynis I Am in NY and I currently Do both and it works out well for me. Also Being an Agent you’ll have more connections with brokers, property managers, and the MLS but having a license to wholesale is not mandatory.

Shawn Ackerman · Answer

Can someone enlighten me on how they wholesale property in NYC?  Considering NY has to be one of the most Litigious states I know (When it comes to real estate), can someone share how they do it? I've heard people contracting properties in their LLC, then selling their LLC to an end buyer however is anyone doing assignments?  Double closing seems like it would be used quite often however at NYC prices you would have to have or know someone who has the capital to close.  Anyone.

Anthony Rosa · Answer

Any license is good to have whether you use it or not.  If you use it fine and if you don't then you will always have something to fall back on if things don't work out.  Also, you never know who you'll meet in real estate and the license will be needed when least expected. Always remember to renew your licenses so you remain current.

Abel Curiel · Answer

Hey @Deynis De Leon ,

Welcome to the BP forum! Best place on the planet to connect with other RE professionals and get your questions answered.

I am in licensed in NY as well and I like what @India Spivey said.

Being licensed gives you another exit strategy for helping homeowners. I.e. if there isn't enough equity in the property for the wholesale deal to make sense, you can list the property for sale and collect commission that way.

I mastermind with a lot of new and experienced agents with an investor mindset. I'm shooting you a colleague request.

Lets connect soon!

Abel

Ron Collins · Answer

@Deynis De Leon Let me say that Wholesaling is hard work. You have to be an expert on the market you're working in, on marketing, deal analysis, estimating rehab costs, etc.

I do not know agency law not am I a R/E Broker or a Lawyer in New York State. I am an Independent Real Estate Broker in Louisiana.

In Louisiana, there is dual agency where a broker can represent the seller and the buyer in the same transaction. If you are going to wholesale as an agent, try to get a listing agreement with the seller at his intended price and just have an agreement with the end buyer to pay you commission/wholesale fee. You will need to get permission and verification from the broker that will hold your license to see if this is allowed. Good luck.

Deynis De Leon · Answer

@Kevin Sobilo thank you for your reply. I want to be an all around investor. Considering I don’t have any cash on hand I’m using wholesaling as a strategy to gain some capital and put it right back into the circulation

Kevin Sobilo · Answer

@Deynis De Leon, I would not wholesale with a license. I think it would be too easy to violate the law in some way.

As an agent you are working for the seller and as a wholesaler you are not.

For example you would need to disclosure the conflict of interest between you being an agent and a wholesaler. They need to understand that whatever they tell you about their situation could be used against them if they negotiate with you as a wholesaler.

Its a very tricky situation. Even under the best circumstances and doing everything right you could end up with a seller who feels taken advantage of and who complains to your broker or the state.

Also, I have heard of brokers who will not allow agents to do things like wholesaling for these same reasons. They have concerns about liability and reputation to consider.

So, I would choose one or the other. Both being an agent and a wholesaler are "jobs", perhaps you should choose one of them and then also consider getting involved as an investor.

Deynis De Leon · Answer

@Roland Paicely I appreciate it

Deynis De Leon · Answer

@India Spivey thank you so much. This is exactly what I figured . I’m definitely going to get my real estate license.

Wholesaling as an agent?

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