All Forum Posts by: Shubham Aggarwal

I am a licensed realtor in Florida that is looking to get into wholesaling. I understand that I will have to disclose that I am licensed to the seller/agent/buyer. My main question is:

Since I am licensed, so I have to use the state-regulated FAR/BAR contract? Or can I use any contract I want? I have seen a bunch of great wholesaling contracts that are out there for free (Jerry Norton, Jamil Damji, etc) that I would like to use, but I am not sure if my license will prevent me from doing so. I will reach out to my brokerage but wondering if any of you had experience in this in Florida (or anywhere).

My belief is that you can use whatever forms your brokerage authorizes. It is always best practice to use the state regulated forms, although it is up to your Broker on what forms they allow agents to use. At the end of the day all deals belong to the brokerage and they are responsible and liable for any wrong doings. My suggestion is to consult your Broker before using any forms that may not be "authorized".

Understood, reaching out to my broker right now. Thanks! Any chance you have info on the below question as well? My broker should be able to answer:

When using the state regulated form, do I have to list myself and my broker as representing myself (obviously without any commission)? Or can I not represent myself and act only as the principal, while disclosing somewhere in the contract that I am licensed?

If you are licensed, yes you are correct, disclose. In a transaction, that question would be one for your Broker of record. You can sale FSBO however in my opinion that diminishes your credibility as a licensed agent.

Thanks! My broker has told me that I do not have to represent myself and that I can act solely as the principal, but will still disclose the fact in additional comments. Also, my broker said I can use any contract I want, but told me to be cautious since the state-regulated contract offers many protections.

Fantastic. Let me know what property you flip and the profit. I agree with your Broker about the contract protection, wise choice!

Thank you for the help!

0 Votes

Fort Lauderdale, Florida

Quote from @Caleb Brown:

As an agent I'd never wholesale a property off the MLS. I am not 100% sure but I don't know how you can represent a buyer(have their best interest at heart) yet "wholesale" the property to them to make $$ on both sides. Way too risky and not worth the time. Just take the 3% and move on to the next. If you are an agent I'd focus on working with investors and finding deals. As a wholesaler focus on building your pipeline and finding good off market deals.

Yup, this makes sense. I forgot that I will be representing the buyer but also trying to make as much money off them as I can lol. Not a good idea. Appreciate it!

0 Votes

Fort Lauderdale, Florida

I am a licensed realtor. Let's say a property is listed on the MLS and offers a buyer's agent commission. I put the property under contract and represent myself. I then assign the contract to a cash buyer. From my understanding, when I assign the contract, I am only assigning the name on title, so the rest of the contract stays as is. As a result, I will still be the buyer's agent and end up being the buyer's agent for the cash buyer.

So, can I make my assignment fee and also take the buyer's agent commission? Let me know what you guys think.

0 Votes

Fort Lauderdale, Florida

Quote from @Bubba McCants:

Quote from @Shubham Aggarwal:

Quote from @Bubba McCants:

Quote from @Shubham Aggarwal:

I am a licensed realtor in Florida that is looking to get into wholesaling. I understand that I will have to disclose that I am licensed to the seller/agent/buyer. My main question is:

1 Vote

Fort Lauderdale, Florida

Quote from @Bubba McCants:

Quote from @Shubham Aggarwal:

I am a licensed realtor in Florida that is looking to get into wholesaling. I understand that I will have to disclose that I am licensed to the seller/agent/buyer. My main question is:

0 Votes

Fort Lauderdale, Florida

Quote from @Katlynn Teague:

Quote from @Shubham Aggarwal:

Quote from @Katlynn Teague:

Shubham,

1) The deposit would go to the closing attorney

2) If your buyer is ready to sign contracts, I would request the deposit immediately.

3) You will receive it back at closing

4) Deposits should always be non-refundable. This protects YOU, in the event your buyer backs out.

5) The deposit can be whatever you want it to be!

Happy Wholesaling!

Thank you so much! This provides a lot of clarity. I have a follow up question regarding #4. Let's say the cash buyer made a $5,000 non-refundable deposit. In the event the cash buyer defaults, I assume the seller will receive my $5,000 deposit and I will receive the cash buyer's $5,000. This way, I am made whole and have no risk. I believe this is what you meant regarding protecting myself, but just want to confirm.

And thinking out loud now, if my deposit is $5,000 with the seller and I request a $10,000 deposit from the cash buyer, I guess I would make $5,000 if the cash buyer defaults?

Absolutely!!

Thank you!

0 Votes

Fort Lauderdale, Florida

Quote from @Katlynn Teague:

@Shubham Aggarwal I am not a100% positive, I would double check with your broker!

No problem, thank you so much for the help!

0 Votes

Fort Lauderdale, Florida

Quote from @Katlynn Teague:

You need to use your state-regulated form.

Since you hold a license you are held to different standards and requirements. If you are looking to wholesale full-time I would recommend going to a wholesale brokerage! This way you are protected and you get to learn from a team. Or you can put your license on in-active and go about it the other way!

Thank you again! When using the state regulated form, do I have to list myself and my broker as representing myself (obviously without any commission)? Or can I not represent myself and act only as the principal, while disclosing somewhere in the contract that I am licensed?

0 Votes

Fort Lauderdale, Florida

Quote from @Katlynn Teague:

Shubham,

1) The deposit would go to the closing attorney

2) If your buyer is ready to sign contracts, I would request the deposit immediately.

3) You will receive it back at closing

4) Deposits should always be non-refundable. This protects YOU, in the event your buyer backs out.

5) The deposit can be whatever you want it to be!

Happy Wholesaling!

And thinking out loud now, if my deposit is $5,000 with the seller and I request a $10,000 deposit from the cash buyer, I guess I would make $5,000 if the cash buyer defaults?

1 Vote

Fort Lauderdale, Florida

Quote from @Nicholas L.:

listen to every episode of wholesale hotline

Looked it up, looks very helpful! Appreciate it.

0 Votes

Fort Lauderdale, Florida

All Forum Posts by: Shubham Aggarwal

Shubham Aggarwal has started 5 posts and replied 18 times.

Post: Wholesaling as a licensed realtor in Florida - Contract Question

Post: Can I make an assignment fee and buyer's agent commission on the same deal?

Post: Can I make an assignment fee and buyer's agent commission on the same deal?

Post: Wholesaling as a licensed realtor in Florida - Contract Question

Post: Wholesaling as a licensed realtor in Florida - Contract Question

Post: Question on deposits from cash buyer

Post: Wholesaling as a licensed realtor in Florida - Contract Question

Post: Wholesaling as a licensed realtor in Florida - Contract Question

Post: Question on deposits from cash buyer

Post: Question on deposits from cash buyer