Disclosure: I understand that none of the responses are any form of legal advice.
Should the wholesaling fee that I receive be reported to my brokerage?
Do you know if the state licensing agency requires it?
Ethically: The wholesaling fee should be reported to the broker
Make sure you check with your state. Doing wholesaling as a licensed real estate agent may be a conflict of interest and could put the license in jeopardy.
That being said: If the state finds out you are doing wholesale deals as a licensed agent it could get real sticky. Why not buy the properties using transactional funding/double closings?
Thanks for the input. I figured their would be potential for a conflict of interest.
Why not buy the properties using transactional funding/double closings?
- What is "transactional funding/double closings?
Here is a link for transactional funding
Its where a lender will lend you money (Temporarily) while your end buyer closes on the deal. Note: As you move forward with your real estate investing business as a licensed agent you may want to consider hanging your licensed with an Investor friendly broker. Alot less headaches.
I appreciate the input.
The brokerage that I plan to work with in the immediate future has a good mentoring/education based approach to new licensees. I have contact info for offices that I can simply hang my license at, but I think that foregoing some of the independence that comes with those arrangements is worth committing to a big box broker for the time being.
Thanks again, Chris
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