Updated over 3 years ago on . Most recent reply
Wholesale lease options with real estate agent
let’s say I want to begin wholesaling, maybe even wholesaling lease options. Can I work with a real estate agent? How would they be compensated for their time and effort? Could I have them handle a portion of the deal with the seller and end buyer for me? Would this be a JV between me and the agent? I would like an agents representation to avoid any legal grey areas and to network as well.
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Sorry, but sort of "no..." Depending on you State and who you talk to, agents can't wholesale....??? They can't be compensated as agents since that would be "brokering" of real estate but you are expressly "wholesaling" real estate. Even if you had a licensed agent working with you, you aren't getting any "agent representation/coverage" since they wouldn't be acting in the capacity of a real estate agent in brokering real estate.
Also, agents tend to be members of the National Association of Realtors (NAR) which requires them to be honest. While its been said that the best policy even for wholesalers is to be open and honest, not all wholesalers operate that way. Additionally, the agent may have "honestly" tell your prospective client that the wholesale is not the best deal/approach for them depending on the nature of the property/situation. Without full disclosure / honesty, the agent could be charged with ethics violations which endangers their NAR membership and potentially their license.
Thats the harsher side of it I suppose...