Question for those who Wholesale or Assign

3 Replies

My question is, how do you intertwine  your two businesses or do you only focus on one?

As a fellow realtor my general focus is investing. I have discussed with fellow agents about putting my license in holding but have yet to make a decision. Thought I would keep it for a while and see if it helps me first. Then, I will decide. Plus it is good in case someone I know needs to sell or buy a new home. 

So I guess what I am really asking is, how do you deal with both the businesses? How does it help you in wholesaling, and what are the true benefits of working as an agent and investor? Maybe this can help me make a decision.

I personally do not have a license but my partner holds one and is an agent for a brokerage. We have a separate LLC where we can utilize the MLS to get records on homes as well as comparable sales. Also helps identify if the home being brought to us is on the MLS or has been in the past, a big indicator of motivation of the seller.

When we do meet up with a seller to discuss contract details, my partner must and does disclose that he holds a license but is not representing anyone during this purchase and is solely a buyer in this transaction. I typically go alone to execute the contract when we get the feeling that the certain seller has an illogical hate for realtors, which happens to be many FSBO's here in Miami.

In terms of intertwining the two businesses, my partner does not typically blend the two as of now. If we come across a deal that the buyer wants top dollar then he takes it as a listing under his brokerage and if he comes across a seller during his marketing that wants a quick cash exit then we'll wholesale the deal. My partner and I are great friends so the money always balances out between deals that roam from one company to another. 

Before the year ends we plan on undertaking our own rehab within this LLC and we'll have to plan out how compensation will work due to the fact that he will be listing all the deals of our fully renovated projects.

Hope this helps! Feel free to reach out for any other concerns regarding this topic.

the other thing you may want to consider is switching to commercial real estate brokerage... if investing is what your truly interested in not selling homes to people that want to live in them..

its a tough apprenticeship but man once your established your set for life..

Having a license is always a good sales tool. Many sellers have chosen to deal with me because I am a licensee even though I was purchasing the property for my personal benefit. The license is evidence of education, ability to pass background checks, etc. I don't engage in the assignment game and have found many dishonest operators on BP that do. Many violate Florida law. Florida law specifically requires anyone to be licensed that performs services (abbreviated BAR SALE):
any person, who for another offers to:
Buy
Advertise
Rent
Sell
Auction
Lease
Exchange

If you earned your license, use it!

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