Originally posted by @Joe Splitrock:
It is a conflict of interest. As a listing agent you are acting as a fiduciary, which means acting in their best interests. Using that relationship to get the property under contract for well under market value, only to resell for a profit larger than your sellers commission is not allowed.
An agent can offer to buy their clients property, but should never do so knowing a higher cash offer is waiting in the background.
It is difficult to wholesale MLS listings, because standard state sales contracts are usually not assignable contacts. That means you actually need to close on the property and resell it to someone, so you need cash or funding.
I have seen some agents offer two options before signing as the listing agent. They give a purchase offer or listing price. That gives the client two options. Should they go the cash price option, they are never signed as a client of the agent.
Some brokers may not allow agents to wholesale. It also depends on how the transaction is structured and legalities in the state you operate.
Very thorough reply and thank you. In FL these contracts are assignable and others have told me it can be done so long as all parties are aware or verbiage on listing agreement/MLS is known for those inquiring buyers that the listing agent has "...contemplated interest in the property".
I'm a newbie at this so this way for starters is def more complicated although some have done it etc. Additionally, I've heard a simultaneous close done in escrow is better when the "assignment fee" is more than a particular number or as desired if it makes sense. I was thinking could that be more like when the listing agent procures a buyer they can reduce the commission as agreed. More interest for how can the sellers make more from the deal and you as well if you have a cash buyer's list more so than greed here.
Again, your post was very helpful thank you and have a great weekend!!
