Can Realtors invest and do wholesale while being under a Broker?? And if so, do we still have to split the money even if it’s a personal business decision??
@Monikaque McKinney . Legally & technically the answer is YES as a REALTOR you can be a Investor and Wholesaler in Texas.
INVESTOR: From the Broker's standpoint, I see very few areas that would be objectionable to most Broker's and you will find a large number of Agent / Investors.
WHOLESALER: Obviously, you can also be a Wholesaler as there a number of RE Brokerages Companies that specialize in wholesaling. The most common one I'm familiar with is New Western.
If you are working at a "Traditional" Real Estate Company, I think most Broker's are not going to be real happy with you trying to be a wholesaler. In my opinion, this area is fraught with situations exposing the Broker to lots of Liability. And if someone plan to sue you over the wholesale deal gone bad, the Attorneys will certainly go after the Broker as well (deep pockets syndrome). Additionally, this also increases the Broker's exposure with TREC.
SPLITTING THE MONEY: If you are using the Broker's services and name, you can bet the Broker will want their share of the money, as a minimum, to cover the increased liability they incur.
I agree with Jim. As an investor, you are acting as a buyer. When purchasing property for investment purposes, you may want to disclose that you are licensed but not acting in that capacity - something like:
DISCLOSURE: The Buyer may be a licensed real estate broker or salesperson (agent). This agreement is not an offer of real estate brokerage services, such as an offer to represent the Seller or list the subject property for sale on the Multiple Listing Service (MLS). The Buyer is not representing or represented by any broker in regard to this transaction.
And he's right on wholesaling, which is problematic for licensed agents because it can be perceived as a brokerage transaction (bringing buyer & seller together and facilitating the transaction in exchange for a fee).
Whatever you decide to do, discuss it with your broker. Lots of agents also buy rental properties, etc.