Looking for Wholesale-friendly Brokers in Las Vegas, NV Pls Help

Realtor · Las Vegas, NV · Member since 2022 · 6 posts · 2 votes

I am a Realtor in Las Vegas, NV but I want to whole sale. My brokerage (eXp Realty) doesn't allow its agents to whole sale. I am looking for a broker that will allow me to wholesale. Does anyone know wholesale-friendly brokers in Las Vegas, NV? Thank you!

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Jonathan GreeneBusiness Member

Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes

You can't wholesale because you are licensed as an agent. The two are often in conflict as you can not take payment for a real estate transaction outside of the brokerage when you are licensed. eXp does not allow it, but plenty of agents have their own off-market LLC and have a separate business. All brokerages are anti-wholesaling because you are making real estate commissions and not cutting them in. If you do off-market and don't wholesale and then get the flip listings, you can do it. There are strategies to direct give your off-market leads and then list at a higher percentage to compensate for that on your side, paying out the buyer side the same. I wouldn't think it's eXp being restrictive, almost all brokerages will say you can come there and then will say the same thing when they see on social media you just made 50k off-market and they made nothing.

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Brittani Purman
Realtor · Gladwin, MI · Member since 2022 · 15 posts · 6 votes
4y
Quote from @Angela Vo:

I am a Realtor in Las Vegas, NV but I want to whole sale. My brokerage (eXp Realty) doesn't allow its agents to whole sale. I am looking for a broker that will allow me to wholesale. Does anyone know wholesale-friendly brokers in Las Vegas, NV? Thank you!
I am an eXp Realtor in Michigan and my state broker allows it, with some added requirements. Have you asked your state broker about it? Maybe they can speak with the Michigan brokers and find a way?
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Angela Vo
OP
Realtor · Las Vegas, NV · Member since 2022 · 6 posts · 2 votes
4y
Quote from @Brittani Purman:

Quote from @Angela Vo:

I am a Realtor in Las Vegas, NV but I want to whole sale. My brokerage (eXp Realty) doesn't allow its agents to whole sale. I am looking for a broker that will allow me to wholesale. Does anyone know wholesale-friendly brokers in Las Vegas, NV? Thank you!
I am an eXp Realtor in Michigan and my state broker allows it, with some added requirements. Have you asked your state broker about it? Maybe they can speak with the Michigan brokers and find a way?
Thanks for the response! Yes I have. Me and a few other agents have been trying to find a way but no luck so far. I will go on workplace and see if I can get in touch with a Michigan broker. Thank you!
1 Reply
Brittani Purman
Realtor · Gladwin, MI · Member since 2022 · 15 posts · 6 votes
4y
Quote from @Angela Vo:

Quote from @Brittani Purman:

Quote from @Angela Vo:

I am a Realtor in Las Vegas, NV but I want to whole sale. My brokerage (eXp Realty) doesn't allow its agents to whole sale. I am looking for a broker that will allow me to wholesale. Does anyone know wholesale-friendly brokers in Las Vegas, NV? Thank you!
I am an eXp Realtor in Michigan and my state broker allows it, with some added requirements. Have you asked your state broker about it? Maybe they can speak with the Michigan brokers and find a way?
Thanks for the response! Yes I have. Me and a few other agents have been trying to find a way but no luck so far. I will go on workplace and see if I can get in touch with a Michigan broker. Thank you!
You're welcome! Good luck and let me know if you need any help.
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Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
4y
You can't wholesale because you are licensed as an agent. The two are often in conflict as you can not take payment for a real estate transaction outside of the brokerage when you are licensed. eXp does not allow it, but plenty of agents have their own off-market LLC and have a separate business. All brokerages are anti-wholesaling because you are making real estate commissions and not cutting them in. If you do off-market and don't wholesale and then get the flip listings, you can do it. There are strategies to direct give your off-market leads and then list at a higher percentage to compensate for that on your side, paying out the buyer side the same. I wouldn't think it's eXp being restrictive, almost all brokerages will say you can come there and then will say the same thing when they see on social media you just made 50k off-market and they made nothing.
[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
Zen and the Art of Real Estate Investing59 Reviews
Website View Page
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Angela Vo
OP
Realtor · Las Vegas, NV · Member since 2022 · 6 posts · 2 votes
4y
First, thank you, that is very helpful. Now I wonder if it boils down to simply negotiating with the broker. Would they have an issue if I was cutting them in? Also, where can I find information or learn more about the off-market LLC separate business idea you're referring to? That sounds like golden advice. I seriously appreciate it!
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Angela Vo
OP
Realtor · Las Vegas, NV · Member since 2022 · 6 posts · 2 votes
4y
Quote from @Jonathan Greene:

You can't wholesale because you are licensed as an agent. The two are often in conflict as you can not take payment for a real estate transaction outside of the brokerage when you are licensed. eXp does not allow it, but plenty of agents have their own off-market LLC and have a separate business. All brokerages are anti-wholesaling because you are making real estate commissions and not cutting them in. If you do off-market and don't wholesale and then get the flip listings, you can do it. There are strategies to direct give your off-market leads and then list at a higher percentage to compensate for that on your side, paying out the buyer side the same. I wouldn't think it's eXp being restrictive, almost all brokerages will say you can come there and then will say the same thing when they see on social media you just made 50k off-market and they made nothing.

First, thank you, that is very helpful. Now I wonder if it boils down to simply negotiating with the broker. Would they have an issue if I was cutting them in? Also, where can I find information or learn more about the off-market LLC separate business idea you're referring to? That sounds like golden advice. I seriously appreciate it!
0 Reply
Brittani Purman
Realtor · Gladwin, MI · Member since 2022 · 15 posts · 6 votes
4y
Quote from @Angela Vo:

Quote from @Jonathan Greene:

You can't wholesale because you are licensed as an agent. The two are often in conflict as you can not take payment for a real estate transaction outside of the brokerage when you are licensed. eXp does not allow it, but plenty of agents have their own off-market LLC and have a separate business. All brokerages are anti-wholesaling because you are making real estate commissions and not cutting them in. If you do off-market and don't wholesale and then get the flip listings, you can do it. There are strategies to direct give your off-market leads and then list at a higher percentage to compensate for that on your side, paying out the buyer side the same. I wouldn't think it's eXp being restrictive, almost all brokerages will say you can come there and then will say the same thing when they see on social media you just made 50k off-market and they made nothing.

First, thank you, that is very helpful. Now I wonder if it boils down to simply negotiating with the broker. Would they have an issue if I was cutting them in? Also, where can I find information or learn more about the off-market LLC separate business idea you're referring to? That sounds like golden advice. I seriously appreciate it!

Hi Angela, I just sent you the MI Broker wholesaling requirements in workplace. The requirements circle around liability. As a Realtor who engages in wholesaling, you are opening yourself and your broker up to increased liability. The MI Brokers have found a way to share this risk with the agent and allow licensed Realtors to wholesale while hanging their license at eXp Realty. I strongly encourage you to consider this as an option and present it to your state brokers.
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Will BarnardPro Member
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Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
4y
So my question is, why do you want to wholesale as an agent? If you have a cash buyer in hand and find a seller to represent, you can double end the transaction and make a 5%-6% (2.5%-3% per side) commission. On a $300k sale, that is $15k-$18k. Then, if y9our cash buyer's goal is to flip the project, you should be able to get the listing on the back end too when they sell for $400k+ and get another commission on the same buyer/seller. Sure you will have to pay eXp the 20%, but once you hit $16k cap, you keep 100% less the small transaction fees. This way, you keep your fiduciary duty to both your clients, lower your risk of liability, and stay above board.
The only way that I feel a licensed agent can wholesale a deal is if that agent presented the seller with full disclosure and 2 options, 1 being the wholesale cash price with quick close at a lower price, or a listing agreement at a higher price with commision paid. Now that seller has the option of taking your wholesale offer at face value knowing they are leaving money on the table had they selected the MLS listing route. If you are not doing that, then you are likely running into the situation where you could easily be accused of stealing equity from a seller and losing your license. To me, getting your $15k-$18k and then another say $12k on the back end (assuming you listed for a reduced commission and did not also double end the back end sale - which is also yet another option to you if you find the buyer too). If you wholesaled a $300k home, how much of a fee would you charge your buyer? $15k? Going the RE agent commision route gets you more with options to make it "much more" and all above board.
Then comes the question, how will you format your wholesale deals? Via assignment, double closing with borrowed funds (transactional funding), or by having your buyer in place and using an entity or trust as the vehicle to wholesale it? There are many ways to wholesale and many ways to perform said wholesale deal illegally so it is important to know how to properly and legally structure it regardless if you are an agent or not.
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