Will getting a RE agent license counts as an advantage for wholesaling?

Question

Hi Everyone,

I was wondering if becoming a real estate agent be beneficial for virtual wholesaling in any way, if so I would appreciate to know the Appreciate your help in advance

Jonathan Greene · Answer

No. If you have a real estate license, it will hinder your wholesaling business because if you have a real estate license, any real estate business you do needs to run through your brokerage. So, you can't accept a wholesale fee as a licensed agent unless you let your brokerage take a cut and provide all the paperwork.

Caleb Brown · Answer

You have to hang your license at a brokerage, can't get a license without putting it under a broker.

Izaiah Barba · Answer

It can be an advantage, but it is not required.For virtual wholesaling, the main benefits of being licensed are access to MLS data, leveraging established relationships with agents, and being able to earn commissions on some deals through referrals.The tradeoff is extra disclosure and more rules to follow, so if you do it, make sure your broker is investor friendly and ok with assignments and creative deals.

Steve K. · Answer

If I was wanting to be a wholesaler I would only get my license if I was going to work for a big wholesaler like New Western. They are licensed but are very careful to disclose their working relationship and that they don’t represent the buyer at all. However if you are going it alone, then having your license could be a hindrance actually, as you’ll be treading that fine line of being an agent/ being a wholesaler and could run into trouble if what you’re doing could be considered a net listing which is against the rules as an agent in most places. Plus if you are wholesaling virtually, you’d need to maintain a license in each state that you’re doing business in which isn’t feasible. I wouldn’t bother with wholesaling anyway though. It’s just sales and if you are going to get into real estate sales, just get your license and sell real estate. Just my opinion.

Bryan Adams · Answer

Thank you very Ken.

I understand,I will check out my state, I was not aware of that.

Ken M. · Answer

Do you mean "you can't get a license without putting it under a broker if you are going to represent clients" or do you mean "you can get a license, but you can't represent someone UNLESS you are under a broker?Correct me if I'm wrong, but I believe you can go thorough the classes, take the tests, become an agent under a broker for a short while, then leave the brokerage, put your license in suspension, and go on with life (you can wholesale or don't wholesale)

Or, you can pass the test and straight away put your license in suspension, and go on with life (you can wholesale or don't wholesale)

Is what you meant, is that you can't be an active agent in good standing, without being under a broker, unless you're a broker?

The point is, you can't represent someone unless you are under a broker.

You can wholesale as an agent, if you are under a broker and they give their approval, with whatever conditions they may or may not add.

You can wholesale as a "suspended" agent (or whatever the proper term is) when not under a broker.You can wholesale while not being an agent, in some states.

Ken M. · Answer

No, to me it is clear. I am not an agent, I understand what you want to accomplish. You can use Redfin.com, Zillow.com, Realtor.com Propstream.com. and a hundred others to get what you need. You are best off not trying to wholesale a listed property.Just make sure you are selling the contract, not the house. Just make sure you aren't required by law to be an agent in the specific states you want to wholesale. Just don't expect agents to like you ;-)Just make sure the seller knows you are a wholesaler without confusing them.

Bryan Adams · Answer

Noted, Thank you very much, Yes I will be alone. I am going to stay away from becoming an agent.

I will continue researching wholesaling process.

Appreciated

Bryan Adams · Answer

I know, he was doing us a huge favor, ( 21 years ago ) he is a broker now.

Will getting a RE agent license counts as an advantage for wholesaling?

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