Wholesaling, Bottom of the Barrel?

Question

Hi Bigger Pockets community! I am an aspiring real estate agent and investor, currently taking classes to get my license in Texas. I was recently approached by an old friend to help with her wholesaling business since she's caught up with a traditional 9-5. She's offering 40% of any assignment fee. Seems like a great way to make money while I'm studying to earn my license. My only hangup is this, a few RE agent mentors I have, have advised me to stay away from wholesaling and wholesalers. Since, the business goes against an agent's fiduciary duties. Should I be concerned since I hope to be an agent in the next few months? I don't want to shoot myself in the foot and earn a bad reputation before I even begin. Or, is this a great opportunity for me to meet investors and supplement some income while I'm at it? Thanks in advance!

Daniel Kong · Answer

@Vanessa Rojas Ah that's perfect then. As long as you are not the one negotiating with the homeowners or locking up the contracts, you are good. You get to see the process, be around real estate and learn how transactions close.

Your real estate class will probably cover a chapter or two about negotiation, ethics, advertising etc, as an agent that you just want to pay attention to. Good luck on your Real Estate Journey!! :)

Vanessa Rojas · Answer

Hey Daniel thanks for responding. My role would be to get the closing documents through title and sign on behalf of her company, since she can't get away from work. I'm not a licensed real estate agent yet, just working through the required curriculum right now.

Daniel Kong · Answer

What exactly would your role in your friends company be? Usually as an agent, you are trying to get the highest price for the seller, whereas a wholesaler you are trying to get it under contract for the lowest price. There are both ethical and unethical ways to work with homeowners. Depending on how you approach wholesaling and what your role in your friends company is, would change my advice to you.