Hey BP I have a serious question. Is it possible to be a real estate agent and do wholesaling/flipping homes and rent out properties on the side. I know with having your license you would have to give your broker a share of your commission on deals and the other examples you don't need a license to do but I was just wondering is it possible to do other things on the side or is it any type of laws that stop you from doing those things when your are considered a license agent... I'm considering taking real estate classes for my license but I want to wholesale and flip homes and rent them out also. Help needed..
I would recommend you look up your state laws. Each state has a gray area regarding wholesaling and being an agent. Some states it helps some they frown on it. For me it has helped me tremendously but there are some states where it may not be a good idea. May be easiest to lookup another wholesaler in Florida area that has been around for a while and ask them. Best of luck
@Jonathan Jackson Many licensed agents also do investing and flipping. There is nothing stopping a licensed person from flipping houses or investing in rental properties.
@John Mathewson ok thanks
@Derrick Friga thanks..quick question would wholesaling be the same as investing because I wanted to wholesale properties also
@Jonathan Jackson From my experience, the term "investing" is thrown around quite loosely. Wholesaling is considered a form of investing. Many wholesalers do invest time and capital into finding a deal and making that deal happen, so yes, it is a form of investing in my opinion. Are you looking to get properties under contract and assign them? Are you intending to close and resell? There is a little bit of a gray area as an agent with wholesaling. You don't want to create any conflict of interest of violate any of your duties a licensed agent.
@Derrick Friga At this present moment I plan to get properties under contract and assign them. I was just wondering if I could do that type of work on the side not involving the broker I would be working for..
Probably not easily. In the state of SC at least, you must disclose if you are licensed.
You can do it. I personally like the overall strategy because real estate becomes both my day job and my side gig.
Look at it this way:
If you're acting as a traditional agent, you are connecting buyers and sellers of RETAIL properties. (Caveat - you're working for them).
If you're acting as a wholesaler, you are connecting buyers and sellers of DISTRESSED properties. (Caveat - you're working in-between them).
The mechanics of the deals are very similar, closings are similar, with a wholesale usually being a double-close.
You can do your own property management for buy-and-holds. You can list your own flips. You can sell retail properties for someone else. You have all of the possibilities open to you.
Drive for dollars, door knock, send out yellow letters. Either a property is distressed or retail. Put 'em in the right bucket and work it.
Obviously, all of this depends on brokerage and the bounds of the law, but it is a sound strategy.
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