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
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing