Wholesaling Real Estate With License - How commissions/fees are handled?

[Michael Giorgianni]

I have been building my wholesaling business for about 7-8 months now and have successfully closed 9 deals so far. I'm trying to find a real estate brokerage to hang my license with and have hit a little dilemma and trying to get some assistance.

I've spoke with a brokerage company that wanted to speak with our state association of Realtor legal hotline before signing me up and have come up with this scenario:

Any wholesaling fee or commission must be run through the brokerage company.

I can understand the commission, however, the problem I have is the fact that they need my wholesaling fee to go through the brokerage company as well??? Mind that I have been doing this without a license for months now. Is this common with Wholesalers that obtain their Real Estate license.

I feel like they are trying to collect both ends of my money.

Keep in mind, my decision is to do both!

[Account Closed]

I'm dislike the term "fee" and don't understand why wholesalers keep using it. Your profit/mark-up on an assignment of contract or resale is not a fee. You are either selling/assigning your contract or you are doing a double close, thereby reselling. It's not an assignment "fee" nor is it a "wholesaling" fee.

The supervising broker has every reason to be concerned if one of his agents is collecting "fees" and every reason to put that "fee" through the brokerage.

Agents buy and sell their own deals everyday. Most supervising brokers can handle that. Stop calling what you do wholesaling, stop calling your profit a "fee". Act, think, and speak like a principal.