Investing as a Realtor - How does commission with brokerage work?

Question

Hi, I am a newly licensed real estate agent in Texas and have a few questions about buying investment properties. If I find an off market property, can I use the TREC (Texas real estate commission) one to four residential contract between myself and the seller? I'm a little confused how this works as I know when you buy off market, you get to avoid agent fees. However, if I am an agent buying an investment property for myself, does the seller have to pay any commissions to my brokerage? Am I now representing as a buyers and sellers agent since im a realtor? How does this work?

Dustin Allen · Answer

@Jacqueline Nguyen

Sit down and have a conversation with your broker about what type of strategies you are looking to use. Every broker has different requirements when you are buying or selling your own properties. You’ll also need to talk about how to go about doing off market properties correctly to cover yourself on liability issues. You can’t represent someone on the opposite side of a transaction than yourself because it is impossible to be a fiduciary to that person. Your broker can help you navigate these issues and help you form a plan to move forward.

Russell Brazil · Answer

When you become licensed, all transactions flow through your broker. You and your broker are responsible for maintain all proper records. Commission will be dictated per your independent contractor agreement.

Jacqueline Nguyen · Answer

Thank you for the insight @Dustin Allen and Russel!

Sherri Stokes · Answer

THIS.

Ronald Rohde · Answer

are you trying to buy it for yourself? or someone else off market? Disclose, disclose, disclose, even then you'll probably get sued or complaint filed

Nick Premer · Answer

Would love to connect !

Investing as a Realtor - How does commission with brokerage work?

Investing as a Realtor - How does commission with brokerage work?

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