RE Agent Vs RE Investor Conflict of Interest

[Michael Moikeha]

How do you mitigate the conflict of interest between being an Investor AND a Broker? On one hand you try and sell at market value, the other you're trying to buy from said person below market value. Where is the moral line? What disclosure laws are there? Do you ever run into an issue when doing your marketing mailers where the recipient thinks you want to list their house even though you clearly state you don't? If you're contacted as a Broker from your mailers, do you have certain obligations? Sorry if my questions seem uninformed, but I have heard mixed responses and wanted to ask a broader audience.

[Karl Krentzel]

Originally posted by @Michael Moikeha:

How do you mitigate the conflict of interest between being an Investor AND a Broker?

On one hand you try and sell at market value, the other you're trying to buy from said person below market value. Where is the moral line?

What disclosure laws are there?

Do you ever run into an issue when doing your marketing mailers where the recipient thinks you want to list their house even though you clearly state you don't? If you're contacted as a Broker from your mailers, do you have certain obligations?

Sorry if my questions seem uninformed, but I have heard mixed responses and wanted to ask a broader audience.

 Thank GOD someone asked this question!!!!

I have an entire blog about the subject of agents investing, plus a podcast. The short answer? DISCLOSE. The Code of Ethics (NAR) shows you how in Articles 2, 4, and 7.

I wrote three specific articles that may be of interest to you.  The first with respect to agents flipping homes or wholesaling is with respect to disclosure. 

Real Estate Agency for Realtors® who Wholesale!

Then of course there is the very important issue of Disclosure....

Why Disclosures are Killing You!

and finally 

Presentation Skills for Realtors® who Invest

I can assure you, as a licensed Broker/Realtor® who flips homes too, there ARE NO RESOURCES available that I have been able to find SPECIFICALLY on the topic of AGENTS who Flip property.

 Best wishes! 

k