Updated over 3 years ago on . Most recent reply
License realtor wholesaling properties
I'm a licensed realtor in Los Angeles. What should I have in my contract to cover me when wholesaling properties? My brokerage is against wholesaling.
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Most brokers don't like untraditional real estate agent activities. You will need to find a new brokerage if you plan on engaging in things the broker doesn't like. I understand why brokers don't like this, if they have many agents to monitor, the activities need to fall within a certain box in order to monitor them effectively. You should look for a broker that allows and preferably participates in this kind of investing. I have a broker here in Phoenix that specifically started the brokerage to allow for investment friendly activities after himself being throttled by other brokerages. We are allowed to pursue any activity that is legal including wholesaling, lease options, subto financing, flipping, buying and selling our own properties, selling leads, referring to investors;: all of these activities I have heard from other agents in some form or another are limited or disallowed by other brokerages.
The only thing I'm not currently allowed to do is anything that involves a trust account as my brokerage does not have a trust account because the broker does not want the headache of managing and reporting that comes from having a trust account. If I deal with leases, which I don't often, I write up the lease agreement for a fee and don't manage the property long term.