Wholesaling Real Estate as an Agent in Oklahoma?

Question

What up BiggerPocket crew, I am trying to find more information about wholesaling real estate as a new agent in the state of Oklahoma but struggling to find plenty of information to make sure I do it right and not lose my license. Would any of you possibly know someone who would have experience in that area and/or be interested in doing some JV deals together? All feedback is appreciated.

Alyssa Dyer · Answer

Hey man, did you get your questions answered on this?

The feedback above is all great. Checking with your broker is a good idea.

Just know that not all brokers are well versed in investments (and that's okay, that doesn't mean they aren't great brokers). So you may have to do your own research and let that guide the conversation. I have my broker's license in OKC. We don't do much wholesaling, BUT when we wholesale we: 1. Over disclose. The seller knows EXACTLY how much we are making. FYI, they can pull the information after closing. So it's just not worth it to lie.2.We will close, even if the assignment contract falls through. People who want to wholesale with us want the convenience. It's usually why they're willing to take a lower price. So I make sure that no matter what, that house sells when I say it will. Even if that means I have to buy it and hold it for a could days/weeks while I wait on the other sale to process.

Let me know if I can help with anything. It's a lot to learn when you start out!

Waylon Zook · Answer

@Andrew Choate maybe im missing something but you are licensed ?  Put it on the mls and get your seller top dollar from a wide audience without doing any shady things. Kinda the point of wholesaling is being able to sell without a license.

Maurice George · Answer

If you have a license and want to wholesale, you still need to be very careful and disclosure is required. Over-disclosed is highly recommended.

Charlie MacPherson · Answer

Account Closed Definitely run this by your broker.  Your biggest problem (aside of the ethics of skimming the seller's equity) is that wholesaling is indistinguishable from a net listing.

Net listings are illegal in most locales.  Check your state's laws.

Account Closed · Answer

Hey Alyssa, appreciate the help with knowing how to wholesale properly.

Account Closed · Answer

Agreed, over disclosure is the way.

Account Closed · Answer

@Waylon Zook My question does sound strange but the thing is in Oklahoma a new law passed and you can’t publicly market your interest in a property unless you’re licensed.

Account Closed · Answer

@Charlie MacPherson I’ll make sure too. I would like not to lose my license first month on the job.

Account Closed · Answer

Tanner,

The insight is much appreciated and I'll make sure to go over the details with my broker. Thanks again

Tanner Sherman · Answer

Andrew,

The first, most important thing to do is get guidance/clearance from your broker. Wholesaling real estate is an area that many brokers do not want their agents getting anywhere near, due to potential legal issues. Other brokers will just require you to be extremely transparent with all parties involved about what it is that you are doing and there may be additional disclosures you need to get signed. I would start by giving them the option and being extremely clear about the trade off- I can list your house for x amount, after fees, commissions and headache you are left with x, or I can agree to buy it from you, cover all closing costs and you don't have to do a thing to it but I will be selling it to a 3rd party for a fee. Their next question will naturally be wondering how much you would make. This question is the reason why many brokers do not wish to engage in wholesaling, because most wholesalers don't want anyone to know how much they are making on the deal and if you are a real estate agent you are expected to be a fiduciary. If the seller knows you are an agent, and you tell them their house is only worth 50% of ARV, they are going to be pretty upset when they find out you made 20k selling it for 70% of ARV and this opens you and your broker up to lawsuits.

Wholesaling Real Estate as an Agent in Oklahoma?

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