Real Estate Agent That Wants To Invest

2 Replies

I'm a licensed real estate agent that really wants to start getting into investing but worry that there's a conflict of interest

so, as a real estate agent I come across deals everyday and my eyes for recognizing potential deals is becoming sharper with my experience. As an agent I find that I represent buyers and sellers and deals that I would love to buy myself. I also come across deals that are great for a wholesale and that's where my question really lies today

A broker that I used to work under told me once that real estate agents can't wholesale properties. So I was wondering if there are any strategies that would allow me to wholesale a home and still get paid without having to split that with my broker or List It on the MLS?

I also have a lot of great contacts in the fix and flip arena and would love to figure out ways to finance a deal. Of course a joint venture is one approach but I also have a house with a lot of equity and was wondering what your experience was with using that equity to start your fix and flip or long-term rental business?

Thanks ahead of time for any advice and good luck out there. It's a crazy Market

@Ben Barredo starting off this is NOT legal advice.  ;D

Typically brokers don't want you to wholesale because they hold all the liability.  Some thoughts:

  • Wholesale "legitimately" by double closing
  • Or even purchase, hold, list. You may find as a licensed agent you that while you have some additional closing/holding costs, it might be made up for the fact that you'll usually get an additional client or two just by having a sign in the yard.
  • Do you have a spouse that might be able to do the wholesaling side of things while you do the sales side?

I know for a fact that there are agents who wholesale, I know some personally.  I wouldn't touch it personally unless I fully closed twice and my broker was 100% on board, mostly because I'm building a sales and investing business through my brokerage that I wouldn't want to risk for a wholesale. Just my 2 cents!

Hi, Ben! First of all, I have to stress that this isn't legal advice. But it's difficult to say that there is a conflict of interest when you are a real estate agent but also an investor. The key to being on the up and up is disclosure. You have to make sure that, within your state, you are using the proper disclosures for any type of transactions that you are doing. And you always have to be honest and upfront. So I would align with the contacts that you have in the fix and flip arena and definitely do a joint venture if you have any that are available to you. That's what I would do and I work with a lot of investors and I'm an investor myself, and we love doing joint ventures. Leveraging someone else's money (OPM- Other People's Money) is obviously incredible leverage. Even if it's at a high-interest rate, don't be afraid. Because if you need cash quickly, just have somebody lined up. They will give you a high-interest rate but you'll get the cash quickly. And then make sure that the terms are right. This would be my advice for you. I hope it helps.

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