Can I Wholesale and be a Real Estate Agent

Question

I became licensed to practice real estate a few months ago and am with a broker in Texas. Does this affect being able to invest in real estate as far as wholesaling is concerned? Is that off the table now or can I still do that without isssue?

Thanks

Russell Brazil · Answer

@Matthew Schneider

When you become a licensed real estate professional, every single one of your real estate activities becomes subject to your brokers supervision. Rentals, flips, wholesaling, consulting. All of it. And all of them become subject to the oversite of your states real estate commission or department of licensing.

Russell Brazil · Answer

@Matthew Schneider

Correct. All real estate activities of a licensed person create liability for their broker, and all must be supervised by their broker per brokerage supervision requirements of each states brokerage law.

Russell Brazil · Answer

Yes you are correct, at least in the case of most states. Obviously with 50 states, and a number of territories and the District, not everything is necessarily uniform everywhere, but most states regulations mirror each other on this issue.  It is one of the downsides people often skip over, or dont operate above board without realizing it.

Jabari Long · Answer

@William Burnson Disclose.  Disclose.  Disclose.  You can still Wholesale just make sure both the seller and your end buyer knows you’re a Transaction Coordinator and not their agent.

Matthew Schneider · Answer

@John Thedford Yeah I wonder the state to state differences--I'm sure they vary. In Georgia it seems you are a-ok to do it yourself, but you must inform your broker. The least amount of supervision you could have in GA is (from my understanding) to have your own (supervised) trust fund account that you manage to do all of your personal deals. The only requirement between you and your broker in this scenario is that you provide them with a written reconciliation statement every quarter on your personally managed trust fund.

BUT to your point, the broker still has oversight, and if they didn't agree to this, you would have to list through them, or through another broker (given your original broker gave you permission to do so). What does this all look like if you were the broker? Seems like there is a marriage between broker and sales agent where one without the other can't do much of anything?

John Thedford · Answer

Is that in your state? We have pretty much the same rules. I can run ads that state I buy property. I MUST list my name as well as the brokerage name. However, I can represent MYSELF when I buy, sell, or lease my own properties. My broker does not oversee these activities. The only time my broker gets paid is when I am representing others. I can list my own house for sale, I can buy without paying my broker, etc..BUT I cannot wholesale unless my broker approves and the fees MUST run through them. It sounds like your state rules may be a bit more stringent than in FL. Also, of course any listings, etc are under the oversight of my broker.

Matthew Schneider · Answer

Here is another statement I just read @John Thedford :

"Every associate broker, salesperson, and community association manager is prohibited from advertising under the licensee's own name to buy any property or offering for sale, rent, or lease any property. All advertising by associate brokers, salespersons, and community association managers must be under the direct supervision and in the name of the broker who holds their licenses."

Matthew Schneider · Answer

Yes, but it also states that all your monetary transactions need to either be deposited into your brokers trust fund, another brokers trust fund (with agreement from your broker) or your own trust account (oversaw by your broker).

Correct me if I am wrong, but your broker will oversee all of your business. So in essence, you would be required to tell them of your business... because legally they have to overlook all of your transactions... and quite frankly as your broker they're responsible too.

*Sorry can't seem to (mention) you... don't know what's up with that... Newbie to these forums!

John Thedford · Answer

That is no big deal. All it states is that you must disclose agency status. When I buy, sell, or lease one of my properties all I have to do is disclose that I am an agent. I have found that to be a plus when dealing with people.

Can I Wholesale and be a Real Estate Agent

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