All Forum Posts by: Rickey Wallace

@Marshall Hooper

2 things:

1) if you had stated that in your original post, that post must’ve been somewhere else due to that not showing up in this current thread. If I am reading correctly, your first comment here was in response to my previous comment

2) Texas or not, regardless of if you make a line in your contract or not stating that you will be given authorization to market their property as you see fit, that doesn't negate the standard operating procedures of the MLS in your area.

Out of curiosity, are you even an agent? If so, why are we debating this since this is information you should already be aware of. If not, why are we still debating this?

@Marshall Hooper

Minus the state part, everything else is valid information for a RE agent. Do you have an answer or no?

@Marshall Hooper

Okay so riddle me this then, Batman....

If you have a contract under agreement to purchase with a seller, then later go to the seller and ask for and get permission to list their property on the MLS, but don't have a contract stating that you are working for the seller in a situation that's almost exactly like what a RE licensee should do, ¿at what point in time does his agency card get pulled into question?

If he was working as a transaction licensee, there’s a contract for that.

If he was working as brokerage that lists the property for a client but does no actual RE agent stuff for them, there’s a contract for that

All clients are customers till they sign a contract and become clients. Under PA state law, only properties that are under contract in some shape or form of exclusivity are allowed on our MLS. If they're not, broker of record gets a huge slap on his wrist and they won't be happy about that

@Ryan D.

Good for you! I’m glad that you fully disclose the information and they are willing to go through with it that way. It makes wholesaling MUCH easier when done appropriately lol

Now, about the Zillow thing...if you were to put the “listing” up, showing the property and/or address and pictures of it, you are basically acting as if you are an agent since that’s exactly what agents do. It’ll be completely fine....till someone sees it that doesn’t approve and snitches on you lol. The repercussions won’t be as severe since you aren’t an agent but you definitely can be fined for such acts depending on the jurisdiction

One of the reasons why everyone gets their panties in a bunch on this site is because it’s a fine line a wholesaler walks wholesaling since it’s nearly identical to acting as an agent. The only real difference is the product being sold....but everyone has their own opinion about the process lol

@Anthony Hollis

Well, since I've kind of touched on it before but you didn't quite get the gist of it, you legally can't put a assignable contracted property on the MLS. The reason for this is because you don't own the property or have the legal rights to sell the property. The entire reason why a person can wholesale "the standard way" is because they're not selling a property, they're selling a contract. Btw, some courts still consider flipping a contract selling a house so check your local jurisdiction

The only way to place a wholesale property on the MLS is by double closing on the property. I'm sure you're aware of the term but just in case....purchase the property by going to closing and then selling it after you have taken legal title of it. The problem with this scenario is that most wholesalers don't have the liquid cash to make the purchase and then hold the property while the next buyer is being obtained. In this situation directly, you would need to purchase to place it on the MLS and wait for a buyer to come, which is the issue.

Don’t get me wrong. Few wholesalers double close all the time and never assign a contract, most of those are agents. Difference is they have their buyer already locked up so the purchase and sale both happen the same day. You have to disclose less when you actually are buying, closing, and then selling it as the owner of record when you are licensed hence the reason why that’s the preferred method for RE agents.

There have been about 10 podcasts here on wholesalers out of the 372(??)ish out. Half of them are agents double closing.

If you do happen to have liquid funds on hand to double close, ¿why don’t you consider wholetailing instead?

@Anthony Hollis

Let me preface these comments with this: I, too, am a real estate agent and I also am/was looking to wholesale properties outside of my agency. I’ve done a crapload of research for my area (PA) in regards to doing such. All of this may or may not apply to you in NC

First things first, if you have already gotten the contract under agreement for you to purchase and you haven’t disclosed to the seller that you are an agent, that alone is enough for you to get pulled into mediation

The number one thing with being an agent while trying to do investment stuff is that extra added benefit of needing to give FULL DISCLOSURE of your actions upfront. Potential ethic violations aside, your license could be in jeopardy, or suspended, if the seller isn’t okay with proceeding from you buying to you listing

I was told from every broker and investor I’ve asked about this and they all told me the same thing: you wear 2 hats: buyer or agent when addressing a seller for the first time. As in “hi (insert seller name here). I’m an agent but I’m contacting you to buy your house”. If at some later time during you conversation you discuss possibly listing instead of buying, hat changes and you might need to refer them to another agent to handle the listing side

As everyone else has mentioned, speak with your broker about anything since due to you having your license in their office, both of y’all can’t get sued for your improper handling someone with a RE license. They can help clear and clean things up, if need be

However, if things were phrased differently with the seller, I’ve seen contracts where listings have turned into purchases after a set amount of time has lapse. I don’t know if that’s allowed in your state or not but that’s an option to look into

Also, i know of a brokerage around my parts that the broker wholesales properties on the MLS. That's his brokerage so rules apply a little differently then lol. I'm sure he's transparent with the client and also has the freedom to negotiate his own terms of earning his "referral/finders fee" on his wholesales.

I don’t know if I hit everything that could help you in your search of answers but best of luck to you 😄

That’s a good point @Todd. That line of thinking is why I’m trying to figure out that separation line. From what you’re saying, just by even partnering up w/ a person who’s only intention in the deal is to be a “money guy” while I was to head all of the actual work is leading towards syndication. In that respect then, how come no one has ever mentioned that before in all of the countless webinars/podcasts (Brandon Turner) that partnering along those lines is waking a fine line into a different territory altogether? I feel that’s something that needs more attention brought to it

Btw, properly spacing out sentences, paragraphs, n bullet points must’ve not been a serious consideration when they were working on the mobile app section lol. Sorry for that big glob oh run on like info

Thank you, sir! I’ll definitely will look into these! I really need to find out if eventually syndication is even a viable option and something I should push towards. My end goals SCREAM syndication but I can definitely obtain them w/o. Thanks again!

After listening to last week’s podcast, speaking mostly about syndication-ing and such, I’ve come to realize that I’ve been kind of pushing towards that kind of work over the past few months...on a much smaller scale lol. With that new insight and direction to focus my goals on, I’ve realized I need a bunch more knowledge about the subject. I have some questions but if someone would also happen to have some source material to point me towards to read about, that’d be splendid as well 1) how far down the rabbit hole of partnering up with other people’s money can one go before you start to tread into needing syndication paperwork together? 2) how many people can you partner up with before being syndicated is recommended/required? 3) is there a definitive amount of people or money that automatically crosses the threshold into syndication (aside from the net worth amount per person)? I’m sure there are plenty of others swarming in my head but I gotta get back to work lol. Thanks!