Real Estate Agent Wholesaling

[Duane Mangalindan]

Hello To All!! Anybody out there wholesaling as a licensed agent? I have a few questions in my mind that I wanted to get answered. I'm a licensed agent in the State of TN. I was just curious as to whether or not being a licensed agent under a broker becomes disloyal when wholesaling comes into play? I plan on marketing separately under a different brand/name of course. Also, are there other agents out there who are wholesaling with additional E&O insurance? Even though we are not taking title to the property?

[Robert Leonard]

@Duane Mangalindan you have to just be really careful and deliberate about keeping the two clearly separated in a way that you never appear to convert a listing lead to a wholesale deal. If a person comes to you as a realtor, that lead should never convert to a wholesale.

On the other hand, there will be lots of times when a lead you generate in your wholesale business will not have either the equity or motivation to make a good wholesale deal, but they are good listing leads. Absolutely nothing wrong with converting them to a listing after analyzing the other options.

So, in summary, listing leads are always listing leads, but wholesale leads may become listing leads. You have to use good judgment and keep it really clear that that's how you are doing business to prevent the appearance of any conflict of interest.

I'm not sure why you ask about additional E&O insurance. That pertains to what you do as a realtor, not as an investor.