I just got my real estate license in Texas and my husband wants to be a RE wholesaler (does not have a RE license).
Does he have to disclose his wife is a realtor? Reason being he would buy the properties under an LLC in which I/wife/realtor is the managing member of the LLC. However I/wife wont be transacting with the sellers. My husband/wholesaler would then assign the contract to another party/company (wholesale). For some properties I would be the end buyer (keep the property in the LLC) and then flix/flip the property. Remember the managing member of the LLC buying the property is me/wife/realtor.
Are there any husband/wife teams like this? How do yall structure the business?
Real Estate Broker · Charlotte, NC · Member since 2016 · 569 posts · 351 votes
3y
As a RE license, your deals have to be brokered by you're BIC until you reach BIC Eligible. Ask him or her how to structure this in your state if possible.
But from my limited experience and knowledge on this sort of thing, In Colorado you always have to disclose if family is involved in the transaction no matter what. That was the biggest problem for 2022 was people not disclosing this and getting sued.
Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes
3y
If the contract is in an LLC (or other entity, including a trust where you're a beneficiary) where you (licensee) holds a greater than 10% interest, your husband must disclose because you are in fact one of the buyers.
Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes
3y
I'm a long-time broker and my wife and I have multiple LLC's. We have been buying homes for 22 years in Texas. It's easy to disclose on the TREC form that I'm a licensee and it never presents a problem for us, but I never go to the appointment wearing my broker hat. My ONLY goal is the buy the property if I can find a way to monetize the deal.
Broker / Investor · Tewksbury, MA · Member since 2008 · 1k+ posts · 351 votes
3y
It could be a problem if the information is not disclosed to your clients when your clients are involved in a transaction with your husbands wholesale deals. A Wholesaler doesn't have an agency relationship with the owner of the property. However the salesperson does have an agency relationship with their buyer clients.