RE Agent Mailers- Is this ok?

6 Replies

I recently got my RE license and was hoping to send out mailers to get some leads. 

I was hoping that depending on the situation (if a seller needs to sell fast) that I could put it under contract and do an assignment to a few cash buyers that I know. 

If a seller wants retails I can just list it and make the commission.

I really want to make sure that I am not violating any rules. Excuse my ignorance.

Generally yes, talk to your broker.  You’ll still sell a discounted property just as fast, or faster, putting it on the mls to All cash buyers, as well as the few you know though.

Hi @Rigo V.

It depends on whether you are including your name as an agent on the mailer. As we learned in real estate school, if you are advertising something from the real estate agent position, make sure you follow all the guidelines that's allowed by the Real Estate Commission (such as including brokerage names, etc.). You should have your broker review the mailing piece before you send it out, as @Wayne Brooks suggested.

If you're just mailing out a typical "we buy houses" postcard with no association of you as an agent, you should be able to do it however you want.

Good luck!

@Michael Lee   just to clarify, lets say a seller says they want to sell their home and they need cash quickly, am I able to offer them a price myself and then flip that contract? I am assuming that's a conflict of interest? 

@Rigo V. check with the Real Estate Commission/Broker for any particular situation but generally if you are their agent you cannot do that.  As their Agent, you have a duty to get your client the best price possible. If you are simply doing a "we buy houses" postcard you might be ok so long as you do not create the actual/apparent appearance of being the real estate agent for the seller.

Originally posted by @Rigo V. :

I recently got my RE license and was hoping to send out mailers to get some leads. 

I was hoping that depending on the situation (if a seller needs to sell fast) that I could put it under contract and do an assignment to a few cash buyers that I know. 

If a seller wants retails I can just list it and make the commission.

I really want to make sure that I am not violating any rules. Excuse my ignorance.

 Good to meet you Rigo

And welcome to Real Estate.

As a Broker myself I think there are three avenues you could take. However all of them require an immense amount of honesty, morality and ethical behavior. Disclose and if you ever think you're doing it wrong you probably are. 

The three avenues

  1. List it at 100% of as is value with the agreement to buy it if it doesn't sell during your listing period at an agreed  upon reduced value. With the understanding that they do not have to sell it to you if it doesn't sell on the open market. Make certain they sign your Brokers disclosures of your intention and possible gain. In this situation I would not offer it for sale as an assignment or calculate an assignment fee. I would close on the purchase.
  2. Offer a cash or terms offer at a value which fits your business model. Have them sign a NON-Agency agreement and sign your Brokers Discloses of your intentions and possible gain. Your Broker may or may not feel comfortable with an assignment. It may look too much like a  net listing.  
  3. Inter into a JV agreement with the seller to take the property to an ARV. This one is easier to sell the seller who wants 85%, has a deferred maintenance house and no cash to rehab. And the rehab increases the value substantially. This requires a couple recorded documents to protect your interest and also many disclosures.

Wearing both hats is very challenging and once you realize that there are plenty of sellers who will sell at 65% you'll stop wearing the Realtor hat.

Happy House Hunting

Wholesaling in general is very tricky to do it right and lawfully. Im sure if you search, is wholesaling illegal, you will see tons of debates on this forum. With that said, adding a licensed agent into the mix doesn't help. I recommend you do some research on how to wholesale the right way before putting your license on the line. I hear some states crack down on wholesalers pretty hard.

For example, even if you're not wholesaling and you're buying the property for yourself, you need to make sure the seller is aware you are a licensed real estate agent, and you must tell them he/she is selling their property to you at below market value, show them comps of the actual value, and have them initial the comps so they understand what they are getting into. If not, it's an easy lawsuit for them should they want to take the property back, because you're the "professional" and you're the one who "deceived" them. 

To avoid all this, find a good partner who's not licensed.