As a licensee, you are under scrutiny by the real estate commission so you need to understand and have an attorney who understands wholesaling before you start.1.

Are they a licensee or an unlicensed broker?

& Regs. r. 520-1-.07Legal/Regulatory Action: Rule(link is external)The Georgia Real Estate Commission has identified the following tasks that unlicensed support personnel may perform:Answer the phone, forward calls to the licensee;Submit data in listings to a MLS;Follow up on loan commitments after the negotiation of the contract;Gather the necessary documents for a closing;Secure public information documents from a courthouse or other public sources;Have keys made for listings;Install or remove lock boxes from listings;Create ads and promotional materials that are to be approved by the licensee;Place ads in newspapers, magazines and other publications as instructed by the real estate agent;Receive, record and make deposits – security deposits, earnest money, advance rents;Fill in contract forms following the instructions of the licensee;Monitor license reports and personnel files;Compute commission checks;Place and remove signs on/from properties;Order routine repair works as instructed by the agents;Pick up and deliver documents and keys;Schedule appointments on behalf of the licensee;Schedule inspections on properties;Schedule the dates for the mortgage application, the walkthrough before closing and the closing;Schedule an open house;Accompany a licensee to an open house or a showing only for security purposes;Perform maintenance works on properties.The Commission has identified the following tasks as some of the activities that unlicensed support personnel shall not perform:Make cold calls or otherwise contact the public for the purpose of securing prospects for listings, leasing, sales, exchanges, or property management of real estateHost open houses, kiosks, home show booths, or fairsPrepare promotional materials/advertisements without the review and approval of an affiliated licensee and firmShow real estateAnswer any questions on title, financing, or closings (other than the time and place)Answer any questions regarding a listing except for information on price and amenities expressly authorized in writing by the licensee;Discuss or explain a contract, listing, lease, agreement, or other real estate document with anyone outside the firm;Discuss the attributes or amenities of real estate, under any circumstances, with a prospective purchaser or lessee;Collect or hold deposit monies, rent, other monies or anything of value received from the owner of real estate or from a prospective purchaser or lessee.Discuss with the owner of the real estate, the terms and conditions of the real estate offered for sale or lease;Collect or hold deposit monies, rent, other monies, or anything of value received from the owner of real estate or from a prospective purchaser or lessee;Provide owners of real estate or prospective purchasers or lessees with any advice, recommendations or suggestions as to the sale, purchase, exchange, or leasing of real estate that is listed, to be listed, or currently available for sale or lease. 

Disclosing your status as a licensee is not a big issue, IMO, if you make it clear that you intend to act for yourself and not as an agent.

Your license.Ensure that your prospect knows that they are in the best possible position by selling it directly to you as opposed to a "unlicensed wholesaler" (Sorry guys, in this case, it's his mortgage, or someone else's).Obviously, as a licensee, you need to do certain things... i.e. use a State Contract, Disclose the Value (Article 1 NAR Code of Ethics), and disclose your position as the principal in the transaction (Article 4 NAR Code of Ethics).Once you have determined what their motivation is... and more importantly, what happens if it doesn't sell... then you will have a better grip on what the disposition should be. 

IMO he should not be a licensee.

See below: CONSENT TO TRANSITION TOTRANSACTION BROKERFLORIDA LAW ALLOWS REAL ESTATE LICENSEES WHO REPRESENT A BUYER OR SELLER AS A SINGLE AGENT TO CHANGE FROM A SINGLE AGENT RELATIONSHIP TO A TRANSACTION BROKERAGE RELATIONSHIP IN ORDER FOR THE LICENSEE TO ASSIST BOTH PARTIES IN A REAL ESTATE TRANSACTION BY PROVIDING A LIMITED FORM OF REPRESENTATION TO BOTH THE BUYER AND THE SELLER.

That will also put you in a position to be misleading either the buyer or seller too, disclosure isn't just saying you're a licensee, it's also to provide the truth about the value you arrive at, you can't mislead an owner thinking it's worth less than it is nor to a buyer as being way overly stated.

Just by having the licensee on your team you can put the seller at ease, get precise sales data reports, and leverage the MLS to populate hundreds of other sites nationwide.

Anyone selling a FSBO should be glad that a real estate licensee agrees to bring a ready, willing, and able buyer to the table and pay the broker for that service.