Licensed Wholesaler?

Question

Would it be very beneficial to get a basic real estate license as a wholesaler or does this add too many regulations, limiting what I can do as a wholesaler?

Anson Young · Answer

I was with a company like this (red...) and left pretty much immediately.  How can something perfectly legal let you lose your license with your broker?  Grass indeed was greener, and my new company (small, local) gets what I do.

Chris Martin · Answer

The wholesaling business model is built on individuals representing the best interest of themselves. Most brokerage houses have a business model where the company represents their clients and their client's interest.

So the question is, for those who have move on to 'greener pastures', are your wholesale deals for yourself? Or does your broker in charge get a cut?

Disclaimer: I don't wholesale. Just curious about the business relationship for 'licensed wholesalers'

Alex Harris · Answer

I'm curious from Jennifer Lee and Anson about being with companies that don't allow wholesaling.  Was it the actually company or was it your broker that frowned on wholesaling?  I only ask because I'm switching brokers soon(within the same company that is larger but nowhere near the top 5) and the thought hadn't even occured that the company might have an issue.  The broker I'm joining used to do creative investing so he was open to the idea which is the main reason I'm joining him(and he has #4 team in country within our company). I'm pretty sure I'm straight but I was just wondering...

Will H · Answer

@andywong I'm new to rei learning about wholesaling. I will look into licensing later. I sent an email to cashbuyerswelcome.com

Andy Wong · Answer

@Will H That would be the ideal way to go about it. However, you'd need a broker to sponsor you, and a lot are skeptical to do so for newly licensed agents unless you're maybe going in full-time and looking to make a career out of it.

Will H · Answer

Hi Anson,

In other words, you're an independent real estate agent and have more control?

Jennifer Lee · Answer

It depends on who you hang license with. For me wholesaling will lose me my license. Big box realtor company

Doug R. · Answer

Thanks Chris I didn't realize I can just pick up those unused leads and sell them myself.  If I have a real estate agent that I currently work with for comps, do you think it would be as necessary to get a license as someone who has no networks with a realtor?

Chris Feltus · Answer

Doug R. It can only benefit you. Not only will you have access to accurate comps from your local MLS, but it will give your sellers additional options. That last point cannot be overstated enough, people love more options.

They can either choose to do a quick cash sale, or list it it as is in an attempt to get more money. With your license you will throw away less leads and make more money plain and simple.

In regards to regulations, its all about disclosure.

Licensed Wholesaler?

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