Licensed RE agent and wholesaling fees?

4 Replies

Disclosure: I understand that none of the responses are any form of legal advice.

State: Washington

Should the wholesaling fee that I receive be reported to my brokerage?

Do you know if the state licensing agency requires it?

Thanks, Chris

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?

Medium bannerfans 19631991  1 Gerald Harris, Vacant Land 54 | [email protected] | 704‑996‑6472 | http://land54.com

@Gerald Harris  

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

http://www.biggerpockets.com/renewsblog/?s=transac...

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.   

Medium bannerfans 19631991  1 Gerald Harris, Vacant Land 54 | [email protected] | 704‑996‑6472 | http://land54.com

Understood.

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