Any other Agents out there doing wholesales? Seems like a conflict of interest when talking to potential sellers.
How about in direct mail campaigns? Should disclosure be printed?
When talking with a potential seller (listing), you are not representing them. Once you have secured the listing, I can see where the conflict arises. I imagine if you are taking a listing from a distressed seller, you can counsel them on a realistic price to expect form an investors buyer and price accordingly. In this situation, your wholesale fee is your sales commission.
If, after speaking with the potential seller, a cash offer makes more sense for them I don't see a conflict. You are acting as a principal for yourself at that point.
Thanks. I think I will have an attorney draw up some disclosure forms ahead of time, so they can sign it during negotiations. I want to tread lightly in the beginning as to know exactly where that line is.
@Hank Parater - another strategy might be acting as a buyer's agent if you know who you will ultimately assign the contract to. Negotiate from a buyer's agent standpoint and have your buyer pay commission, or better yet, have the seller pay your commission.
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