Wholesaling Real Estate With License?

Question

Hello BiggerPockets,

I'm taking the real estate state exam next week and I wondering if having a real estate license and wholesaling real estate is playing with fire. I mean, I know all have to do is state in a clause that I am an active agent, but am I being unethical, or playing with flames?

All opinions welcomed!

John Thedford · Answer

@John Rogers I just add that info into the contract. "Buyer is a licensed sales agent, purchasing under market, and with a profit motive."

Jake Thomas · Answer

It's a fine line sometimes but if you disclose that you are licensed it isn't a big deal. These people usually need to sell quickly and for cash so listing with a Realtor isn't the best option for them anyways. Worse case if you can't come to terms on the wholesale agreement you can offer to list the house and make money that way.

John Rogers · Answer

*Quick wave to Keith* We used to live in Shrewsbury Hills before moving to Florida...

Neil J - We are a Brokerage where all of our people are also investors.

In Florida, it is as simple as a disclosure form. One of us buys, rehabs, and lists. The property goes under contract and there is a form from the State that becomes a part of the contract package disclosing that the owner is a Realtor... simple.

Keith Pentz · Answer

Hey Neil!

You are going to get answers all over the place, but I can tell you 1. Check with your Instructor from your Prelicensing course. 2. Check with your Real Estate Attorney that you plan on using. They can direct you if OH has any specific wording that prohibits the contract from being assigned. 3. And this is a BIGGIE..check with your BROKER that you will be working with! Some Brokers won't be cool with it since you may be using their resources to make your money that they won't see any of!

Good luck and check with your local pros.

KP

Wholesaling Real Estate With License?

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