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Updated almost 4 years ago,
Using a broker to close a wholesale deal
I am concerned about the legality of brokering a deal with a buyer once I have the option contract signed. From all of the debates I have seen it looks like the only real question that is being debated is "are wholesalers acting as unlicensed brokers"? I'm NOT looking for an answer to that I am simply asking why not just take the broker fee as an operating expenditure?
Here's how I'm thinking this should go:
1) I do the upfront work to get a property under contract.
2) I pass this off to a transaction broker who is legally allowed to advertise a property they don't own. Provided they find a buyer we proceed with a double close and the Broker gets paid out of my fee.
Did I miss anything? To my understanding that has me solidly inside the law, I'm not asking the broker to operate in any unconventional manner, and they get paid exactly the same as they normally would. Please tell me if I'm wrong and how. Also my understanding is I would need to use a transactional broker because I am not the seller is that correct?
Thanks!